Net Gaming sees revenue fall sharply in 2019
EBITDA and post-tax profits also decrease as CEO admits disappointment with earnings development
Net Gaming’s end-of-year reports have revealed that revenue, EBITDA and post-tax profits all fell sharply in a year that was described as “incredibly challenging” by president and CEO Marcus Teilman.
Teilman was understandably displeased with the results which he said were “characterised by regulatory effects in the European market”.
Comparing Q4 2019 with Q4 2018, post-tax profits fell by 60% from €1.53m to just €610,000.
In the same time period compared to 2018, revenue fell by some 30% and EBITDA dropped by 41% to €3.29m and €1.92m respectively.
As well as seeing NDCs decline by 19%, despite Teilman claiming that the figures have “continued to stabilise”, revenue figures year-on-year fell by 22.9% to €14.3m
Post-tax profits also fell by 36.7% to €4.93m while EBITDA dropped off by 33.1% to €8.36m.
Teilman noted that the change in Net Gaming’s business model to an increased proportion of revenue share had a negative impact on the firm’s 2019 revenue.
He said: “The main purpose of changing the business model is to build a more stable revenue base with a larger share of recurring revenue. During Q4, we have now reached a revenue share level of 64% of revenue, which we feel is a relatively balanced and sustainable level.”
Teilman went on to detail how this change in approach significantly impacted the 2019 results, adding: “The main purpose of changing the business model is to build a more stable revenue base with a larger share of recurring revenue. During Q4, we have now reached a revenue share level of 64% of revenue, which we feel is a relatively balanced and sustainable level.”
Q4 2019 saw Net Gaming relaunch Pokerlistings.com with an added casino section ahead of further expansion in the US.
CasinoGuideNJ.com was also launched to provide casino comparison intel for the New Jersey market.
Teilman added: “We will invest further in Pokerlistings.com in 2020, as we see this brand as an important growth driver in the US.”
Despite the frustrating year and poor results, Teilman noted that he was positive for the future and backed Net Gaming’s ability to get out of this apparent rut.
Teilman concluded: “During the year, we underwent an important change through the launch of our new technical platform and our establishment of a competent and more forward-looking organisation.
“In 2020, I look forward to being able to take advantage of all the interesting growth opportunities we have identified.”