OGQ: NeoGames leads revenue growth in Q4 2022

The Online Gambling Quarterly regularly provides various in-depth analyses of key financial figures of igaming companies. In this article, the analysts share some revenue growth benchmarks of the recent quarter. In Q4 2022 NeoGames led revenue year-on-year (YoY) growth (compared to the previous year) with an increase of +465% (YoY); the average YoY growth in the quarter of all online gambling companies analysed was +47%. Regarding the quarter-on-quarter (QoQ) growth (compared to the previous quarter Q3 2022), best practice growth was achieved by DraftKings (+70%).

Total revenue growth analyses (YoY) – for more data click here.

The Online Gambling Quarterly analyses the total revenue figure across all segments and the revenue development for each vertical. For the Q4 2022 development of the total revenue, the researchers provide the following insights:

• On average, total revenue (all verticals…) grew in Q4 2022 by +47% (YoY) – excluding NeoGames, the average growth rate is +35%.
• Best practice growth (YoY) was achieved by NeoGames with +465%. NeoGames is a provider of ilottery and igaming solutions and recently acquired Aspire Global (including BtoBet and Pariplay). Revenue was $69.2m in Q4 2022, compared to $12.3m a year before. Q4 2022 was the second quarter after the completion of Aspire Global, which was the key revenue driver in this quarter.
• Lowest/negative growth – At the bottom of the ranking we find Scout Gaming and Angler Gaming.

Total revenue growth analyses (QoQ) – for more data click here.

In many cases the YoY growth rates are exceptionally high due to acquisitions made in a previous quarter – an effect that carries through for consecutive quarters after the acquisition. Therefore, several leading companies in the YoY growth benchmarking have those top positions more or less due to acquisitions made within the 12 months before the analysis. The researchers at Online Gambling Quarterly have therefore decided to also analyse QoQ growth benchmarks as well. Those growth rates might be impacted by seasonal effects (eg. football season versus no football season) and other changes, but these figures can provide a quick, current overview of the most recent growth dynamics while excluding the effects of acquisitions in previous quarters.

• Average growth – On average, revenue increased in Q4 2022 (compared to the previous quarter – Q3 2022 – QoQ) by +18%.
• Best practice growth (QoQ) – Best practice growth (QoQ) was achieved by DraftKings (+70%). DraftKings reported revenue of $855m, driven primarily by continued customer retention and monetisation in existing states and the launches in additional jurisdictions as well as by “structural sportsbook hold improvements”.

Betting revenue growth analyses (YoY) – for more data click here.

The Online Gambling Quarterly also analysed the development of betting revenue (mostly net revenue) in the recent quarter with the following insights:

• Average growth – On average, betting revenue increased in Q4 2022 (compared to a year earlier) by +56% (YoY).
• Best practice – The best practice was achieved by the overall Spanish market “Spain total (DGOJ)” with +217% (YoY).
• Lowest/negative growth – At the bottom of the ranking we find Entain online and the Danish market.

For more financial analyses (eg. casino revenue growth…), have a look at the full report here.