After discussing the worst-performing iGaming stocks of Q1 2023, iGaming NEXT has shifted its focus to the winners among operators, affiliates and suppliers.

BetMakers Technology Group, PointsBet and 888 were among the biggest losers in Q1. DraftKings, Catena Media and Evolution are among the best-performing stocks of the past three months.

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DraftKings

DraftKings has gained an impressive 75% in Q1 2023 and almost 22% over the past 12 months.

After going public via a SPAC deal in 2020 and experiencing significant fluctuations in its stock price, DraftKings has been making strategic moves to maintain its foothold in the highly competitive US online sports betting and iGaming market.

In February,  the company laid off around 140 employees following an internal reorganisation designed to keep compensation expenses flat year-over-year.

DraftKings has also been aggressively pursuing new users to gain market share. Despite being a market leader, the company has yet to turn a profit.

However, in Q4 2022, DraftKings generated an 81% year-on-year increase in revenue, reaching $855m, while posting an AEBITDA loss of $50m.

Despite its lack of profitability, the company’s ambitious plans to achieve positive EBITDA and potentially turn a profit by Q2 2024 have inspired confidence among investors.

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Catena Media

One notable turnaround is Catena Media, which has emerged as the winner in the affiliate segment, recording a gain of 59% in Q1 2023.

However, it’s worth noting that the company’s stock lost almost 25% over the past 12 months.

The company’s Q4 2022 revenue grew by 15% to €27.4m, and the affiliate business has significantly streamlined its operations as part of a strategic review initiated in May 2022.

Catena Media said it is committed to regulated market growth while the recent sale of the AskGamblers business to GiG has freed up resources for M&A and organic investment, while also reducing debt levels.

Commenting on the sale of its flagship brand, CEO Michael Daly said: “AskGamblers is a solid business with healthy margins. However, the accelerating trend towards market regulation led us to conclude that the brand, which partly addresses non-regulated grey markets, would enjoy better development prospects under new ownership.”

The firm also divested its Financial Trading segment via a management buyout at the end of January 2023.

However, there is still some uncertainty about Catena Media’s future.

The company announced in January that third parties had expressed interest in acquiring the entire business, but thus far no further details have been provided.

The prospect of a sale, as well as Catena Media’s strong Q4 2022 performance and strategic focus have garnered investor confidence, contributing to its impressive Q1 2023 stock market gain.

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Evolution

Live casino and slots supplier Evolution has performed impressively in Q1 2023, with a stock gain of 32% and an overall rise of 41% in the last 12 months.

This growth is a testament to the company’s strong reputation amongst investors, who have consistently favoured Evolution for its stellar performance and market-leading position.

In 2022, the company reported impressive figures, including a 36% annual revenue growth to €1.46bn and a 37% rise in EBITDA to approximately €1bn.

The unveiling of a list of new games and being ranked as the leading US iGaming supplier by GGR further solidified the company’s position in the industry.

Additionally, all regions reported year-on-year growth in 2022, and Evolution continued its global expansion through investments in studio expansion.

However, the new global minimum tax rate that comes into effect from 2024 will increase the company’s tax levels.

This caused the company’s otherwise stable stock price to drop significantly in December after EU member states approved the minimum tax.

Despite this, Evolution remains a strong performer in the supplier category.

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