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Affiliate Monitor
Q119 Q219 Q319 Q419 Q120 Q220 What ’ Q320 s your view Q420 ? Q121
26 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
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ACROUD
CROWDED HOUSE
Acroud ( formerly Net Gaming Europe ) proudly boasted of revenues rising 75 % to € 5.8m , helped by the addition of recent acquisitions . Organic revenue growth , however , was down by 10 %, a fall that the company attributed to its decision to exit the Netherlands market ahead of the regulated market launch in October . Notably , the company said that the Netherlands was previously its biggest market .
The leap in revenues – and the reverse of the previous largely declining trend – is clear . It is even more evident from the year-onyear quarterly comparison .
EBITDA was down 17 % year-onyear to € 1.4m while the EBITDA margin fell to 26 % from 55 % in the prior year period . NDCs rose 230 % to 31,787 .
NDCS DEBUT
It should be noted that this is the first time Acroud has disclosed absolute NDC numbers , having previously only reported the NDC change percentage . Again , the boost provided by Q121 can be clearly seen .
DIVERSIFICATION PLAY
Recent M & A has transformed Acroud from a basic affiliate business to something more ambitious . On the earnings call , CEO Robert Andersson spoke
Company-by-company first-quarter results analysis
Chart 27 : Acroud revenue progression Q119-Q121 (€ m )
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Chart 28 : Acroud YoY revenue change Q119-Q121 (€ m )
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about the addition of the software / business-as-a-service segment from the Matching Visions and Voonix acquisitions as bringing revenue diversification , alongside the growth from the more clearly affiliate-led deal for Swedish-facing Gambling Cabin . This diversification
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includes geographic expansion – Acroud received a Pennsylvania
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Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
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licence recently – as well as other verticals , though Andersson didn ’ t divulge what these might be .
STREAMING IN
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One organic innovation during the period was the launch of the Dream Stream offering , which is based on the Matching Vision affiliate network technology .
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Source : Company reports
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Source : company reports Source : company reports
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Chart 29 : Acroud NDCs Q120-Q121
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Chart 29 : Acroud NDCs Q120-Q121
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Source : company reports
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Chart 30 : Acroud geographic splits Q120-
Q121 Chart 30 : Acroud geographic splits Q120-
Chart 30 (%) : Acroud geographic splits Q120-Q121 (%)
Q121 (%)
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Source : company reports
Q120 Q220 Q320 Q420
Q121
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67 19 14 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %
0 % 10 % 20 % 30 % Europe (%) 40 % North 50 America % (%) 60 % RoW (%) 70 % 80 % 90 % 100 %
Andersson said the new offering
Europe (%) North America (%) RoW (%)
Source : company reports
Chart had already 31 generated : XLMedia more performance model
Chart conversions than 1,00031 NDCs : XLMedia in March FY2020 . “ Now performance (%) can accommodate model as many we have streaming content , we conversions FY2020 (%) are reaching a new generation of players , via Twitch and YouTube ,”
Hybrid 10 % he said . He noted that there were lower margins Rev – share Acroud 17 % takes a
commission from the operator but Rev share 17 %
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Q120 Q220 Q320 Q420 Q121
75 10 15
73 15 12
60 23 17
64 20 16
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Source : company reports
Hybrid 10 %
has to pay some of that on to the
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streamer , but there are potential economies of scale as the platform
streamers as the company wishes . “ It really is one-to-many ,” he said .
ORANGE OCTOBER
Andersson was also optimistic about Acroud ’ s prospects in the Netherlands . “ This will be a
“ On M & A we are continuing to vet lots of potential deals . So we don ’ t see ourselves as going on a spree but there are some interesting prospects out there ”
ROBERT ANDERSSON , ACROUD
good market for us , and we are adding a Dutch sports brand to our portfolio as well ,” he said . “ It ’ s very dependent on when they launch . It was our largest market before and that ’ s why we took a big hit . Now we are just waiting and maintaining a lot of good rankings . It should quite quickly generate some good cash but I can ’ t give a forecast .” More broadly it has been clear for some time that Acroud ’ s geographic focus is shifting , albeit maybe slightly , to the US .
MISSION STATEMENT
Andersson said it was “ important to understand the strategic journey ” Acroud was trying to follow , particularly with regard to future acquisitions . “ On M & A we are continuing to vet lots of potential deals . So we don ’ t see ourselves as going on a spree but there are some interesting prospects out there .”
iGB Affiliate Monitor July 2021
CPA 73 %
CPA 73 %