Online Gambling Benchmarking 2015/2016 edition Comprehensive report analysing updated benchmarks, KPIs, margins, of the online gambling industry

Transcription

1 Online Gambling Benchmarking 2015/2016 edition Comprehensive report analysing updated benchmarks, KPIs, margins, of the online gambling industry London/Munich, August 2015

2 Summary MECN is proud to present the new 2015/2016 edition of our report Online Gambling Benchmarking Study. The first editions of the report were received very well, and as the online gambling market changes very quickly, we are now happy to publish an updated version of our report. As before, the report offers a comprehensive analysis and benchmarking of key performance indicators (KPIs), key business figures, relevant margins, and much more to enable executives in the online gambling industry to improve both controlling and operations. The report is a must-read for all strategists and executives in the industry who want to save the time and money of compiling their own database we have done it for you. Readers of the first editions of the report were impressed: The report saved me and my team weeks of number crunching. (CFO of online gambling operator). Content of the report The report offers unprecedented insights into the industry: - Current data and KPIs as well as historical data back to 2007 Our benchmark analyses are based on the most recent data and KPIs and also trace long-term developments as far back as Revenue growth benchmarks are broken down by products/verticals. - Analyses of financial results, such as EBITDA, EBIT, including comparison of margins. - Expense/costs benchmarks and margins, such as marketing, bonuses, CPA, IT, R&D, staff costs, chargebacks, - Player/customer-related benchmarks, such as active player development, ARPU (also broken down by products/verticals), churn rates, - Product-related benchmarks, such as product/vertical split, cross-selling, number of bets placed, breakdown of betting revenues by type of sport, - Live betting benchmarks, such as live betting s share of total revenue, live betting gross revenue margins,... - Mobile business benchmarks, such as mobile share of total online business, mobile share of total online casino/gaming business, number of mobile players, mobile betting revenue per player,... - Geographical analyses, such as the level of internationalisation and geographical diversification In total, the report has 118 pages and 176 graphs/exhibits. What s new in the 2015/2016 edition In this new edition we have added several new analyses. Some of these are taken from the most recent Online Gambling Quarterly analysis (more info here). Among the key additions: - In-depth mobile gambling focus We have added still more analyses of the mobile gambling business in order to cover the full range of relevant mobile KPIs,... - Strategic issues Strategic topics, such as overall industry climate, trends,... - More marketing benchmarks Social benchmarks (e.g., number of Facebook Likes and Twitter Followers,...), SEO benchmarks (e.g., Google ranking analyses), affiliate marketing benchmarks (e.g., top 30 online gambling advertisers/brands on affiliate websites), - More product-related topics and benchmarking Growth potential for selected products, benchmarking of product offers, such as number of football bets, casino games, lotto and numbers games,... 2

3 Table of contents 1 Introduction 7 Part 1 Online gambling trends and hot topics 2 Key trends and topics Online gambling industry climate Overall trends Winners and losers which operators will gain/lose? 13 3 Mobile gambling in the spotlight Introduction Mobile growth development Mobile share of total online business Mobile players and revenue per mobile player Growth trend Mobile gambling revenue - Cannibalisation or new business? 19 Part 2 Growth benchmarks 4 Revenue growth Total revenues Betting revenues Poker revenues Casino revenues Growth comparison between betting, casino, and poker 31 5 Revenue related benchmarks Gross revenue/win margin in online betting Geographic benchmarks global revenue split, 33 Part 3 Key financial results benchmarks 6 EBITDA Growth analyses and ranking EBITDA margin 39 7 Operating profit / EBIT Growth analyses and ranking Operating profit margin 42 8 Profit before tax Growth analyses and ranking Profit before tax margin 45 Part 4 Expenses/costs benchmarks 9 Marketing Growth analyses and ranking Marketing expense margins Marketing expense per active player Cost per acquisition (CPA) Bonuses and free bets Growth analyses and ranking Bonus margins Overview of bonus margins across segments/verticals Bonuses in the betting segment Bonuses in the poker segment Bonuses in the casino segment IT and technology expenses Staff costs Growth analyses and ranking Staff costs / personnel expense margins Chargebacks, bad debt, Research and development 63 3

4 Part 5 Player/customer-related benchmarks 15 Active players/customers Revenue per player ARPUs ARPU Total revenue per active player ARPU betting Betting revenue per active player/bettor ARPU poker Poker revenue per active poker player ARPU casino Casino revenue per active casino player Churn rate of active players/customers 70 Part 6 Product-related benchmarks 18 Overview, comparison, and growth development Overall product/segment split Betting segment share Poker segment share Casino segment share Cross-selling analyses Betting-related benchmarks Number of bets placed Revenue per bet Stake per bet / size of bet Breakdown of betting revenues by sports Betting offers product benchmarking Live betting benchmarks Live betting s share of total turnover/stakes Live betting s share of total gross revenues/wins Live betting gross revenue/win margins Operators with the widest range of online casino offers Lotto, numbers games,... product benchmarking Overview Operators offering the widest range of lotto/numbers games 92 Part 7 Marketing-related benchmarks and analyses 24 Social marketing benchmarks Overview and introduction Facebook benchmark analyses Twitter benchmark analyses SEO benchmarking which operators are doing the best job in SEO? Affiliate marketing benchmarking The top online gambling brands on affiliate websites in Europe Betting-specific affiliate benchmarking 103 Part 8 Regions and regulated markets analyses 27 Overview and comparison of regulated markets Online betting development Online poker development French online gambling market Danish online gambling market Casino games revenue breakdown Casino games/offers product benchmarking Overview 89 4

5 Exhibits Exhibit 1: Exhibit 2: List of companies included in the benchmarking analyses Exchange rates applied Part 1 Online gambling trends and hot topics Exhibit 3: The current and future business climate of the online gambling industry Survey results Exhibit 4: Development of the assessment of the current industry climate Survey results Exhibit 5: Growth potential of selected new markets and topics Survey results Exhibit 6: EU VAT, UK POC tax,... - strategic relevance of key issues Survey results Exhibit 7: Growth potential of the key online gaming/gambling products incl. social, mobile, binary options, fantasy sports,... Survey results Exhibit 8: Future winners and losers in the online gambling market Survey results Exhibit 9: Mobile growth development of online gambling operators in Q1/2015 Exhibit 10: Mobile gambling example - Paddy Power Exhibit 11: Growth of total mobile business (revenue) benchmarks 2013 and Exhibit 12: Growth of mobile betting business (revenue/turnover) benchmarks 2013 and Exhibit 13: Growth of mobile casino/gaming business (revenue) benchmarks 2013 and Exhibit 14: Mobile share of total online betting business benchmarks 2013 and Exhibit 15: Development of mobile share of total online betting business 2010 to Exhibit 16: Mobile share of total online casino/gaming business benchmarks 2013 and Exhibit 17: Mobile share of total online gambling business benchmarks 2013 and Exhibit 18: Share of mobile players of total active bettors benchmarks 2013 and Exhibit 19: Mobile revenue per mobile player (ARPU) benchmarks 2012, 2013 and Exhibit 20: Development of mobile betting share - Q4/2013 to Q1/2015 Exhibit 21: Where does mobile gambling revenue come from - new business or cannibalisation? Survey results Exhibit 22: What % of the mobile revenue is new/additional revenue and what is cannibalization of existing revenue Survey results Part 2 Growth benchmarks Exhibit 23: Annual growth rates of total online gambling revenue benchmarks 2013 and Exhibit 24: Ranking of online gambling operators by total net revenues Exhibit 25: Annual growth rates of online betting revenue benchmarks 2013 and Exhibit 26: Overall development of betting revenues 2007 to Exhibit 27: Ranking of online gambling operators by betting net revenues Exhibit 28: Annual growth rates of online poker revenue benchmarks 2013 and Exhibit 29: Best practice poker in 888.com Exhibit 30: Overall development of poker revenues 2007 to Exhibit 31: Ranking of online gambling operators by poker net revenues Exhibit 32: Annual growth rates of online casino revenue benchmarks 2013 and Exhibit 33: Best practice casino revenue growth in - Mr Green Exhibit 34: Overall development of casino revenues 2007 to Exhibit 35: Ranking of online gambling operators by casino net revenues Exhibit 36: Growth comparison between segments betting, casino, and poker 2008 to Exhibit 37: Gross revenue/win margins in online betting benchmarks 2013 and Exhibit 38: Development of gross revenue/win margins in online betting 2008 to Exhibit 39: Share of European markets of total business benchmarks Exhibit 40: Development of European markets share of total business 2008 to 5

6 Exhibit 41: Level of internationalisation benchmarks Exhibit 42: Geographical diversification best practices Exhibit 43: Number of languages offered on online gambling websites benchmarking analysis Part 3 Key financial results benchmarks Exhibit 44: EBITDA growth of online gambling operators benchmarks 2013 and Exhibit 45: Overall development of EBITDA 2007 to Exhibit 46: Ranking of online gambling operators by EBITDA Exhibit 47: EBITDA margins benchmarks 2013 and Exhibit 48: Development of EBITDA margins 2007 to Exhibit 49: Operating profit development of online operators benchmarks Exhibit 50: Development of operating profits growth rates 2008 to Exhibit 51: Overall development of operating profits 2007 to Exhibit 52: Ranking of online gambling operators by operating profit Exhibit 53: Operating profit margins benchmarks 2013 and Exhibit 54: Development of operating profit margins 2007 to Exhibit 55: Profit before tax growth of online gambling operators benchmarks Exhibit 56: Overall development of profit before tax 2007 to Exhibit 57: Ranking of online gambling operators by profit before tax Exhibit 58: Profit before tax margins benchmarks 2013 and Exhibit 59: Development of profit before tax margins 2007 to Part 4 Expenses/costs benchmarks Exhibit 60: Marketing expense growth of gambling operators benchmarks 2013 and Exhibit 61: Overall development of marketing expenses 2007 to Exhibit 62: Ranking of online gambling operators by marketing expenses Exhibit 63: Marketing expense margins benchmarks 2013 and Exhibit 64: Development of marketing expense margins 2007 to Exhibit 65: Marketing expense per active player benchmarks 2013 and Exhibit 66: Development of marketing expense per active player 2007 to Exhibit 67: Cost per acquisition (CPA) benchmarks 2013 and Exhibit 68: Growth of bonuses, free bets,... of online gambling operators benchmarks 2013 and Exhibit 69: Overall development of bonuses, free bets, to Exhibit 70: Ranking of online gambling operators by bonus,... expenses Exhibit 71: Bonus margins (bonuses,... in % of revenue) benchmarks 2013 and Exhibit 72: Development of bonus margins (bonuses,... in % of revenue) 2010 to Exhibit 73: Bonus margins in individual segments (betting, casino, poker) 2010 to Exhibit 74: Bonus margins in the betting segment benchmarks 2013 and Exhibit 75: Development of bonus margins in the betting segment 2010 to Exhibit 76: Bonus margins in the poker segment benchmarks 2013 and Exhibit 77: Development of bonus margins in the poker segment 2010 to Exhibit 78: Bonus margins in the casino segment benchmarks 2013 and Exhibit 79: IT/technology expense margins benchmarks 2013 and Exhibit 80: Development of IT/technology expense margins 2008 to Exhibit 81: Exhibit 82: Exhibit 83: Growth of staff costs / personnel expenses benchmarks 2013 and Overall development of staff costs / personnel expenses 2007 to Ranking of online gambling operators by staff costs / personnel expenses Exhibit 84: Ranking of online gambling operators by number of staff 58 Exhibit 85: Staff cost / personnel expense margins benchmarks 2013 and Exhibit 86: Development of staff cost / personnel expense margins 2007 to Exhibit 87: Staff cost / personnel expense per employee benchmarks 2013 and Exhibit 88: Net revenue per employee benchmarks 2013 and Exhibit 89: Chargebacks / bad debt margins benchmarks 2013 and Exhibit 90: Development of chargebacks/ bad debt margins 2007 to 6

7 Exhibit 91: R&D cost margins benchmarks 2013 and Exhibit 92: Development of R&D cost margins 2007 to Exhibit 93: Ranking of online gambling operators by R&D costs Part 5 Player/customer-related benchmarks Exhibit 94: Growth of number of active players/customers benchmarks 2013 and Exhibit 95: Overall development of number of active players/customers 2007 to Exhibit 96: Ranking of online gambling operators by active players/customers Exhibit 97: Total revenue per active player/customer (ARPU) benchmarks 2013 and Exhibit 98: Development of total revenue per active player/customer (ARPU) 2007 to Exhibit 99: Betting ARPU revenue per active player/bettor benchmarks 2013 and Exhibit 100: Development of betting revenue per active player/bettor 2009 to Exhibit 101: Poker ARPU revenue per active poker player benchmarks 2013 and Exhibit 102: Development of poker revenue per active poker player 2010 to Exhibit 104: Development of casino revenue per active casino player 2010 to Exhibit 103: Casino ARPU casino revenue per active casino player benchmarks 2013 and Exhibit 105: Churn rate of active players/customers benchmarks 2013 and Exhibit 106: Development of churn rates of active players/customers 2009 to Part 6 Product-related benchmarks Exhibit 107: Product/segment split of total revenue Exhibit 108: Development of product/segment split of total revenue 2008 to Exhibit 109: Product/segment split of total EBITDA case study 2013 and Exhibit 110: Share of betting segment of total revenue benchmarks 2013 and Exhibit 111: Development of share of betting segment 2008 to Exhibit 112: Share of poker segment of total revenue benchmarks 2013 and Exhibit 113: Development of share of poker segment 2008 to Exhibit 114: Share of casino segment of total revenue benchmarks 2013 and Exhibit 115: Development of share of casino segment 2008 to Exhibit 116: Cross-selling rate benchmarks 2013 and Exhibit 117: Development of cross-selling rate (example) 2010 to Exhibit 118: Growth of number of bets placed benchmarks 2013 and Exhibit 119: Overall development of number of bets placed 2007 to 2013 Exhibit 120: Number of bets placed of selected online gambling operators Exhibit 121: Revenue per bet benchmarks 2013 and Exhibit 122: Stake per bet benchmarks 2013 and Exhibit 123: Development of average revenue and average stake per bet 2007 to Exhibit 124: Sports breakdown of betting revenues (incl. horse race betting) Exhibit 125: Sports breakdown of betting revenues (excl. horse race betting) Exhibit 126: Examples of listings of bet/markets per league and sport Exhibit 127: Overview of number of bets/markets offered for various leagues and sports - benchmarking analysis Exhibit 128: Overall benchmarking and ranking of online football betting offers Exhibit 129: Overall number of bets/markets benchmarking analysis Exhibit 130: Percentage share of football/soccer bets/markets of total benchmarking analysis Exhibit 131: Overall number of football/soccer bets/markets in top leagues benchmarking analysis Exhibit 132: Overall number of football/soccer bets/markets development Exhibit 133: Overall number of Premier League bets/markets benchmarking analysis Exhibit 134: Overall number of Bundesliga bets/markets benchmarking analysis Exhibit 135: Live betting share of total turnover/stakes 7

8 Exhibit 136: Development of live betting share of total turnover/stakes 2009 to Exhibit 137: Live betting share of total gross revenues/wins Exhibit 138: Development of live betting share of total gross revenues/wins 2008 to Exhibit 139: Live betting gross revenues/win margins 2009 to Exhibit 140: Live betting vs. pre-match gross revenue/win margins 2009 to Exhibit 141: Casino games turnover breakdown case study Exhibit 142: Casino games revenue breakdown case study Exhibit 143: Overview of number of casino games offered by category benchmarking analysis Exhibit 144: Overall benchmarking and ranking of online casino game offers Exhibit 145: Overview of lotto, numbers games, and scratch games benchmarking analysis Exhibit 146: Overall benchmarking and ranking of online lotto and numbers games Part 7 Marketing-related benchmarks and analyses Exhibit 147: Example of Facebook page of online gambling operator Exhibit 148: Example of Twitter page of online gambling operator Exhibit 149: Overall benchmarking (Facebook, Twitter, YouTube) of the key online gambling operators Exhibit 150: Number of Facebook Likes/fans of online gambling operators Facebook pages Exhibit 151: Growth development of Facebook Likes in the online gambling industry Exhibit 152: Level of engagement Number of people talking about this as proportion of Likes/fans Exhibit 153: Best practice in Facebook engagement in the online gambling industry Exhibit 154: Number of Twitter Followers of online gambling operators Twitter pages Exhibit 155: Growth development of Twitter Followers in the online gambling industry Exhibit 156: Google France search results for online casino Exhibit 157: SEO benchmarking (across segments/verticals, brands, and key countries) of key online gambling operators Exhibit 158: Example of affiliate page and featured online gambling operators Exhibit 159: The top advertisers/brands (gambling websites) on affiliate websites Exhibit 160: Top affiliate betting advertisers/brands (websites) in key European markets Exhibit 161: Top 20 affiliate betting advertisers/brands (websites) in Germany, Spain, Italy, France, Sweden, and the U.K. Part 8 Regions and regulated markets analyses Exhibit 162: Online sports betting comparison France vs. Italy vs. Spain gross revenue per capita Exhibit 163: Online poker comparison France vs. Italy vs. Denmark vs. Spain gross revenue per capita Exhibit 164: Online sports betting comparison France, Italy, Spain Q1/2012 to Q1/2015 (gross revenue) Exhibit 165: Online sports betting comparison France, Spain vs. Italy growth rates until Q1/2015 Exhibit 166: Online poker comparison France, Italy, Spain, Denmark Q1/2011 to Q1/2015 (gross revenue) Exhibit 167: Online poker comparison France, Italy, Spain, Denmark growth rates until Q1/ Exhibit 168: French online gambling market gross revenue segment breakdown Q1/2013 to Q1/2015 Exhibit 169: License holders in the French online gambling market Exhibit 170: French online sports betting market wagers, gross revenue, net revenue, margins Q1/2013 to Q1/2015 Exhibit 171: French online poker market gross revenue and net revenue Q1/2013 to Q1/2015 Exhibit 172: Danish betting and online casino/poker market - Q1/2013 to Q1/2015 (gross revenue) Exhibit 173: Danish online poker market - Q1/2013 to Q1/2015 (gross revenue) Exhibit 174: Company size (gross revenues) of licensees in the Danish gambling market Exhibit 175: List of licensees in the Danish gambling market Exhibit 176: Industry background of survey participants 8

9 Sample pages of the report About authors and contact information MECN is a network of experts on issues concerning the media and entertainment industry. Together we provide in-depth knowledge, analysis, and advice to global clients. For the gambling industry, we provide market insights and strategic support to various clients ranging from bookmakers to state/public operators. MECN U.K. MECN Germany 207 Regent Street Fürstenrieder Str. 279a London W1B 3HH Munich United Kingdom Germany info@mecn.net 9

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