Part 1: Analysis of results from second quarter
We generally have high traffic levels on our sites, but
player values remain at the lower levels, which we have
noted since the beginning of the year.
Michael Holmberg, Raketech
checks introduced earlier this year were the NDCs comparisons
source of delays in player activities and sign-ups What is obvious from the results elsewhere in
in May and June, while in Sweden Catena said the listed affiliate space is that Catena Media is
there was “no tangible improvement” due in part not alone in suffering a reverse in new player
to seasonal lows. numbers. Both the media services division within
Gaming Innovation Group (GIG) and Net Gaming
The company also blamed player winnings
Europe also suffered year-on-year NDC declines.
which, it said, affected its revenue share
Conversely Raketech and Gambling.com Group
arrangements, particularly for AskGamblers.
During the second quarter results earnings
– which although not listed has a bond listed on
call, Hellberg said the company was “clearly not the corporate bond list at Nasdaq Stockholm and
happy” with the situation regarding NDC numbers hence releases quarterly results – each followed
even as he repeated the message about quality Better Collective’s lead with NDC rises of circa
over quantity. He also suggested the company 22% each.
was engaged in various remedial measures to
Given the variance in business models and
turn the situation around. These include the hiring geographies across the listed affiliates, it is hard
of more than 30 new SEO, product design and to draw many conclusions from the numbers.
management personnel, plus the hiring of external Regulation was cited as a drag also by Net
agencies. These have been working on what the Gaming Europe and by Gaming Innovation Group,
company said have been, to date, 24,000 SEO along with the comparison from last year when
fixes across its vast website estate. “Our aim is the World Cup took place partly during the
more NDCs,” he told analysts. “We will do better period.
At Raketech, the picture on NDCs was far more
in the second half.”
upbeat, even though the company said during its
Catena also pointed to the value per NDC
figure, a somewhat newer metric in the affiliate own earnings call with analysts that in Sweden
space. According to a chart produced in the – which remains its biggest market – growth
second quarter presentation, that figure had risen had “stalled”. The Nordic region as a whole
from circa €170 in the fourth quarter of 2017 to represented nearly 97% of total second quarter
about €235 in the second quarter of this year. revenues.
Table 2: Listed affiliates NDC comparison
Metric
NDCs Q219
YoY NDCs % increase (%)
Catena
Media Better
Collective Raketech Gambling.
com
Group GIG Net
Gaming
Europe
99,981 111,000 24,974 19,487 29,435 Not stated
-29 60 21.7 22 -6.9 -29
Source: Company reports
iGaming Business • Affiliate Monitor • October 2019
5