Once a quarter, the Online Gambling Quarterly provides an overview of the best-performing shares of online gambling operators and service providers.
The biggest leap among the analysed “pure” online gambling companies was taken by US giant DraftKings, with an increase of +75% over the past three months
Share developments
The average share price in the industry saw an increase of +10% in Q1 2023. Below are the key results of the analyses. More insights are available here.Winner: The biggest leap in the sample of online gambling-focused companies was taken by DraftKings with an increase of +75% over the past three months; followed by Catena Media (+58%). Interestingly, DraftKings and Catena Media were the two worst-performing company stocks last quarter.
Loser: 888 and PointsBet had the worst three-month performance in the analysis, with decreases of -41% and -19% as previously discussed by iGaming NEXT.
Average: On average, share prices analysed increased by +10%.
Comparison to Nasdaq Composite: Compared to the three-month development of the Nasdaq Composite (+12%), the average growth of the online gambling industry looks “worse”.
Multi-channel operators: Among the multi-channel operators that also operate a relevant retail business, MGM is the “winner” with a share development of +33% over the past months.
Comparison to multi-channel operators: It is also interesting to compare the performance of exclusively online gambling companies with that of companies also operating a land-based business. The share prices of the online/retail operators analysed increased on average by +11% (compared to +10% for the online-only operators).
P/E ratios
The Online Gambling Quarterly also analysed the current P/E ratios for several companies. The ratio provides a good picture of the value of the company.Winner: The firm with the lowest P/E ratio – which therefore provided the best returns to investors relative to its share price – was Betsson, with a ratio of 11. Meanwhile, Zeal/Tipp24 has the highest P/E ratio of the analysed firms, at 47.
Average: The average P/E ratio of the sample analysed is 21 (median of 18).
Market cap in relation to Q4 2022 revenue
Traditionally, market cap is correlated to earnings-related figures. But in times of rapidly changing markets and a relevant number of new and growing market players, earnings-related analyses may be less conclusive.
Therefore, the researchers also set the market cap in relation to the most recent quarterly revenues (Q4 2022). For operators, the Online Gambling Quarterly took the net gaming revenues, and for all others (tech providers, affiliates) they took the revenue related to online gambling.
In some cases, the revenues reported might not be entirely comparable, but the analysis indicates the market dynamics.
Winner: Evolution leads the ranking in market cap in relation to the most recent quarterly revenue with 64; it is followed by Zeal/Tipp24 (25) and Inspired (19).Average: The average ratio of the companies analysed is 14 (median of 8).
If you are interested in learning more, check out the free data magazine – www.quarterly.og-q.com.