Oddschecker insights: February results go the layers way
New Oddschecker data shows Q1 margins almost double long-term expected average in February
Listed bookmakers enjoyed a run of favourable results in February, according to new Oddschecker data.
Gross win margin via Oddschecker was 5.4% in February compared to a long-term average of 2.8%, continuing a strong run that started in January when margins were at 4.5%.
However there was some concern the recent Cheltenham Festival went the punters’ way.
Oddschecker gross win margins are materially lower than operator margins due to the type of customer using Oddschecker and the relative lack of accumulators.
Barlays analyst Patrick Coffey noted that March had been a “mixed bag so far”, suggesting that bookmakers are set for strong Q1 results, especially set against a soft Q1 2018.
“Robust current trading could help alleviate some [investor] fears,” Coffey added.
Elsewhere, the February figures continued to show a slowdown in sign-ups for Big 7 bookmakers.
“This could be suggestive of an overall UK slowdown or it could simply highlight the UK is maturing, meaning improvements in ARPU and retention will be the key driver for the Big 7 in the future,” Coffey noted.
The largest bookmakers also lost share at Cheltenham earlier this month.
On a more granular level, pricing at Ladbrokes and Coral continued to diverge with Ladbrokes overround increasing and Corals’ falling.
“Ladbrokes appears to be targeting a more recreational customer vs Coral offering more attractive value,” Coffey said.
“Overall Paddy Power, Sky Bet and Ladbrokes appear to be fighting for similar recreational customers while Coral may start competing with bet365 and Betfair over time.