MECN Report – Online gambling operators’ mobile businesses currently average 29% of total revenue

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For more than three years now the online gambling industry has declared the mobile channel its key growth driver. However, although the mobile business is becoming more and more important, operators do not (yet) have consistent reporting standards (KPIs) regarding their mobile revenues. In its newest Online Gambling Quarterly report (Q3 2014) MECN’s researchers therefore try to crack this tough nut and analyse several mobile KPIs and their development in recent years and quarters

Mobile growth development – still difficult to benchmark

Many online gambling operators do not (yet) have consistent reporting standards (KPIs) regarding their mobile revenues. Also not all KPIs are reported consistently by all operators for every quarter or half years. In regard to comparable benchmarks “only” two KPIs are currently usable:-

  • 1.) mobile betting stakes/revenues in % of total betting stakes/revenues
  • 2.) total mobile revenue in % of total revenue (across all segments/verticals).

Mobile business makes currently in average 29% of total revenue

Initially, the mobile figures that were reported focused on betting stakes or revenues because operators in the past focused primarily on launching mobile betting offers. Recently, the mobile revenue generated by the casino, bingo, and poker verticals/segments has become more and more relevant. Therefore, more and more operators additionally/instead report the mobile revenue in % of total revenue across all verticals. Our analyses of the mobile business of key online gambling operators provide the following insights:

  • Mobile total revenue in % of total revenue – On average, the operators analysed generate 29% of their total online revenue (across all segments/verticals) via mobile channels (Q2 / H1 2014 figures). Best practice is found at Paddy Power where 52% of the revenue comes via the mobile channels, followed by Norsk Tipping with 42%
  • Mobile betting stakes/revenues in % of total betting stakes/revenues – On average, the operators analysed generate 43% of their total online betting stakes/revenue via mobile channels (Q2 / H1 2014 figures).

Exhibit 1: Mobile revenue in % of total revenue – click here to see/enlarge detailed graph

Is there a maximum mobile revenue share?

As the mobile share is growing constantly, the question arises whether there is a maximum total revenue share the mobile channel can reach depending on vertical/segment. Here are the insights from MECN’s expert survey:

  • Betting – The experts assume that the maximum mobile share is about 57% of total online/digital betting revenue.
  • Casino – The experts assume that the maximum mobile share is about 49% of total online/digital casino revenue

Online Gambling Quarterly – Q3 2014 – Comprehensive quarterly report analysing updated benchmarks, KPIs, trends, … covering all sectors of the online gambling industry

This quarterly report covers a wide range of topics from key company sectors, such as finance, marketing, strategy, …. Due to this extensive coverage, the report is a must-read for executives and departments of all companies active in the online gambling market. This regular report offers unprecedented insights into the industry, including:

  • Strategic issues – Strategic topics, such as overall industry climate, trends, forecasts, stock development, …
  • Financial benchmarks – Quarterly and half-year revenue benchmarks, EBIT, and cost benchmarks, …
  • Marketing benchmarks – Social benchmarks, SEO benchmarks, affiliate marketing benchmarks, …
  • Product-related topics and benchmarking – Growth potential for selected products, benchmarking of product offers, …
  • Analyses of regions and regulated markets – Regional analyses, such as the level of internationalization and in-depth coverage of regulated markets, …
  • In total, the report has 105 pages and 154 graphs/exhibits.

The study can be obtained at www.mecn.net or the report website

About MECN

MECN is a network of experts on issues concerning the media and entertainment industry. Together they provide in-depth knowledge, analysis, and advice to global clients.

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