Bede Gaming revenues up 11% in FY2017
Provider reports EBITDA loss ahead of potentially transformational deal with Ontario Lottery
Bede Gaming revenues grew by 10.8% to £9m during 2017 but with a pre-tax operating loss of almost £1.7m, the supplier has confirmed.
Bede’s number of staff remained largely static at 116 for 2017, with an average cost per employee of £44,000. Company EBITDA reduced to a £600,000 loss during the year from a previous contribution of +£147,000.
Paul Leyland, analyst at Regulus Partners, said that the business had proved that “it can win big clients and probably now has the critical mass to gain scale benefits from further wins if well executed.”
Leyland added: “The upside is creating a genuine competitor to large first and second generation online gaming software providers while land-based led groups are still struggling to transition. The downside risk is a portfolio of clients on aggressive contracts demanding more than Bede’s slender resource-base can deliver.”
Bede counts Rank and LeoVegas among its high-profile customers.
It has been a busy month for the company which announced the adding of SBTech to its platform before concluding a deal with the Ontario Lottery & Gaming Corporation (OLG).
The OLG is one of the largest lotteries in the world, generating financial year 16/17 revenues of CA$7.5bn. Of these revenues almost 48% comes directly from slots and casinos, and only 0.8% of revenues come from online gaming (CA$58m).
As a part of the deal, Bede will provide the monopoly operator with its digital platform across both its lottery and gaming products, including the supplier’s responsible gambling technology.