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Kambi Group plc Q1 Report 2020

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Financial summary

  • Revenue amounted to €27.9 (Q1 2019: 21.0) million for the first quarter of 2020, an increase of 33%
  • Operating profit (EBIT) for the first quarter of 2020 was €6.8 (2.6) million, with a margin of 24.5% (12.4%)
  • Profit after Tax amounted to €4.8 (2.0) million for the first quarter of 2020
  • Earnings per share for the first quarter of 2020 were €0.156 (0.066)
  • Cash flow from operating and investing activities (excluding working capital movements) amounted to €4.1 (1.1) million for the first quarter of 2020

Key highlights

  • Strong financial performance with 33% year-on-year rise in Q1 revenue and 27% year-on-year increase in Q1 operator turnover, despite reduced sports schedule from 12 March 2020
  • Average daily operator turnover to 12 March 2020 up 47% on the comparative period in Q1 2019 and up 7% on the comparative period in Q4 2019
  • Multiple partner launches, including taking the first legal sports bets in the US states of Illinois and Michigan, further demonstrating Kambi’s regulatory and operational excellence

“The coronavirus pandemic is having a major impact on people’s lives and livelihoods and represents a global challenge of the like we have never faced before. Industries of all kinds have been affected and interrupted, with our own sports betting industry no exception. 

The sports calendar has been stripped bare across the world, with major leagues and events being cancelled or postponed, quite rightly, until safety can be guaranteed. And while I have no doubt sports will return, the current situation has understandably led to a reduction in our revenues, although our teams have done a wonderful job to stem the flow and ensure our partners have a good product to sell. In the final weeks of Q1 and early Q2, we have been running at approximately 25-30% of previous levels in Q1, despite our increasingly material retail business being all but closed.

Despite the much lighter sporting calendar during the latter weeks of the first quarter, Kambi posted strong growth numbers. Operator turnover for the period was up 27% while our revenue increased by a third to €27.9m. EBIT was €6.8m, and we ended Q1 with a cash balance of €46.3m, a sum which will help us withstand the worst-case scenario: an extended period without major sports.

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It’s worth highlighting the momentum we had built before the pandemic began to make its presence felt on the sporting calendar. Up to and including 12 March, Kambi’s average daily operator turnover in Q1 was up 47% on the respective period in Q1 2019, and on track to eclipse our record operator turnover of the previous quarter, with it ahead 7% on the comparative period in Q4 2019, despite fewer American football fixtures due to the season’s end.

Furthermore, on 9 and 11 March we processed the first legal bets in the states of Illinois and Michigan respectively. This continued our fantastic performance of getting partners to market quickly with a high quality and compliant sports betting service. To illustrate, Kambi is now active in 10 US states, achieving market firsts on eight occasions. In addition, we recently received our licence for the state of Colorado, where we expect to go live soon.

As announced earlier this month, we introduced a major cost saving programme, to which our staff have readily adapted. I must thank our people for the resilience they have shown during this difficult period. I feel proud of their commitment to our partners to deliver a quality service under the circumstances.

We owe it to our all our employees, partners and investors to ensure we are in the strongest position possible to pick up where we left off when sports do resume, and we enter what promises to be a prolonged period of busy sporting action. I’m confident the cost saving measures we’ve introduced in recent weeks, our strong balance sheet, and the flexibility we have retained to be back running at 100% capacity almost immediately, will ensure we are able to do so, alongside our fantastic partners.

So even though our momentum has been slowed by the unfortunate events of recent months, the decisions we have taken see us well placed to move through the gears as soon as the virus is under control and major sports return. There are positive signs some leagues and tours may resume before or during the summer, albeit behind closed doors, and when they do, we’ll be ready.”

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You are invited to participate in a report presentation at 10.45 (CEST) with Kambi Group plc’s CEO Kristian Nylén and CFO David Kenyon. The presentation will be held in English via a telephone conference and can also be accessed via an audiocast using the link below.

Questions can be asked on the telephone conference or sent via the audiocast link. Please see details in the link below:

https://financialhearings.com/event/12433

Numbers for participation in the telephone conference:

Dial-in number SE: +46850558369 UK: +443333009262 US: +18338230589

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Link to the audiocast: https://tv.streamfabriken.com/kambi-group-q1-2020

Link to report page: https://www.kambi.com/investors/financial-reports-and-presentations/quarterly-reports

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The untapped potential of SEO in iGaming

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With Filip Podborschi, SEO Strategist at The Unit

From our experience in SEO in igaming, there are a number of areas where we see room for improvement and common mistakes which can be rectified. Let’s take a look at these facets of SEO one by one, with our best tips for how to make sure you can maximise your search ranking and drive more volume to your website.

Keyword strategy

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The first thing operators should do in this area is identify the best performing keywords that result in higher search volumes on each post. It’s pages that rank rather than websites, so you need a different search intent on each page, and that increases the list of keywords you’re ranking for.

The way to do this is by checking the search volume, and then implementing the keywords according to SEO best practices, which means having primary and secondary keywords and adjusting repetition accordingly.

The common mistake we see here is that companies don’t go into enough depth when conducting competitive analysis; especially when they’re new to the industry. Identifying what exactly your competitors are doing regarding SEO is harder than it looks, and it’s an area where marketing agencies tend to be quite lazy. They may use some tools which will show the standout competitors by algorithm, but they won’t crawl for long enough to ascertain what services they offer and provide a comparison with their client’s service. You need to find out which sites could be ranking better than you, and why.

We also see issues with the ranking of sites based on the user’s location. For example, you may have a website that ranks well in Canada, and when I as a user based in Romania search for that category, I’m not going to get the same list of results as a user who is based in Canada. The best thing to do is use a VPN to gauge how your websites are ranking and performing with your specific audience in your domestic geographical area.

SEO tags optimisation

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With SEO tags, which are essentially the page title and description you see on the search engine results page, the page title has the highest ranking power. Google will first check the page title to get an idea of what the page is about and what searches it is relevant for. It will then check the H1 and the content, and it may look through the H2 as well.

A common issue here is some websites have templated SEO tags, especially for the inner pages, so it’s more of a formula within the code to generate a random structure. It is very obvious they are templated and that the operator doesn’t really care about the length.

The key thing with tags is to make sure your pages have titles that don’t exceed the ideal length. This is a big mistake if you get this wrong, and it is very important to optimise your titles. SEO tags can be optimised around keywords. Once doing so, it is very important to prioritise your main pages. If you have 10 pages as part of the main menu, then you should optimise those, before optimising the inner pages.

Identifying duplicate pages is also important, as well as making sure meta inscriptions include CTAs; those inscriptions don’t impact rankings directly, but they do impact the CTR. You have to do that without being too spammy though, so it’s advisable to avoid words like ‘sale’ or calls to “CLICK HERE NOW”.

Headings

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Keywords must be implemented in headings; especially in H1s and H2s. Make sure not to overuse H2s and keep them optimised for content value.

If we structure the ranking power of the elements that are bringing results, we would optimise with the page title first, H1 second, content third and H2s fourth. It is better to have five H2s with three of them being optimised around the same search intent that is highlighted in H1, than it is to have 3/10 optimised around keywords. Too many H2s will just confuse Google about your search intent. You can have similar search intent as with H1s, and also have H3s and H4s to highlight value to the reader.

Interlinking strategy

Interlinking between pages is often missing. I’m not talking about interlinking from the main menu, as every page has the ability for you to go back, but I’m talking about interlinking within content, which Google considers to be much more important, because it cares about the relevancy. Google will consider pages with high-quality content as a higher authority page.

Our advice would be to implement anchor links on both branded and non-branded keywords. You should make sure there is an anchor link to the parent page. For example, domain.com/blog is a parent for domain.com/blog/igaming-seo.

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It’s very important to have child pages linking to the parent page, passing authority to the parent page. Having that interlinked structure will pass more authority to that parent page.

To explain that in a little more detail, let’s say you have a sportsbook page with 10 more child pages that reflect a particular set of sports. Having each of those 10 pages optimised so they have some authority and linking them to the parent page would pass authority to that parent page. Parent pages usually have a keyword with higher search volume, and passing as much authority as you can to the child page is very important. Too often websites lack content on child pages.

The future of SEO and experience needed

Going forward, we see AI as one of the most significant developments in SEO. At this point, we are not able to rank user engagement in AI, and it is important to keep yourself updated with how Google is reacting to this.

Google in time may provide additional options if you want to be eligible for a particular set of results in that environment. Keep an eye on what features it will offer and the types of websites. Google may consider implementing specific types of results for betting, such as displaying odds or a comparison of odds from three or four sites at the same time.

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With all these issues, it is vital to have the relevant experience on board, particularly when it comes to the skill of conducting very in-depth competitor analysis, and this is something The Unit can provide. Conducting competitor analysis is something we have done across several industries, and not just in igaming. The main strength you can have with SEO is to know your competitors inside out, and those skills can be adjusted based on your needs.

The post The untapped potential of SEO in iGaming appeared first on European Gaming Industry News.

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IGT Expands Footprint in Spain’s ‘Salones’ Sector with Launch of New Multi-level Progressive Theme

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International Game Technology PLC announced that its latest multi-level progressive (MLP) game, Diamond Mania, has launched in Spain’s Amusement with Prize (AWP) “salones” sector. Diamond Mania will follow the success of IGT’s Magic Fortune Link AWP game in Spain, a high-performing title that recently surpassed a 1000-unit deployment milestone.

“IGT is committed to growing its footprint in Spain by supplying researched-backed, market-attuned games that meet the player preferences in the region. Building on the successful deployment of IGT’s debut title for the salones sector, Magic Fortune Link, we are excited to expand our offering to include Diamond Mania, a unique multi-game jackpot that can help operators achieve excellent results and diversify their gaming floors,” said Maria Aldana, IGT Director of Sales Western Europe and Africa.

Specifically adapted for the salones market, Diamond Mania features four lively base game themes: Samurai Takeo, Majestic Stallion, Ramosis Treasures and Wish Mistress. Featuring proven mechanics for a highly engaging experience for players, Diamond Mania offers three special bonuses, a reel boost, a prize boost and a jackpot bonus, which can combine to activate the super games and mega games features and ultimately lead to the chance to win one of the four progressive jackpots.

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Diamond Mania is available on the BINTIA 27-inch multi-game cabinet, which offers dual HD monitors and a topper option for casino-like styling. It features an ergonomic design, programmable LED lighting, vivid high-resolution graphics, an immersive sound system and can be configured with the TITO function.

The game will be exclusively distributed through Orenes Grupo, Spain’s salones sector market leader in operations and gaming machine distribution. Later this year, IGT plans to introduce Treasure Box, the Company’s third MLP developed specifically for Spain’s salones sector, which represents approximately 3000 gaming and bingo halls.

The post IGT Expands Footprint in Spain’s ‘Salones’ Sector with Launch of New Multi-level Progressive Theme appeared first on European Gaming Industry News.

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Sportradar Appoints Behshad Behzadi as the Company’s Chief Technology Officer and Chief Artificial Intelligence Officer

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Sportradar Group AG announced that Behshad Behzadi has been named Chief Technology Officer and Chief Artificial Intelligence Officer of the Company (CTO and CAIO), effective May 1.

As Sportradar’s CTO and CAIO, Behzadi will be based in the organisation’s headquarters in Switzerland and report directly to Chief Executive Officer, Carsten Koerl. Working collaboratively across the organisation, Behzadi will drive the usage and adoption of AI and cutting-edge technology to enhance its product offerings and roadmap to deliver hyper-personalised experiences for sports fans. Additionally, his extensive experience in leading initiatives aimed at improving internal operational efficiency will help optimise processes and drive innovation across the business. Sportradar has the largest global coverage of sports data, fan insights and betting liquidity. The usage of cutting-edge AI will help to drive the Company’s future efficiency and can create significant value for clients and stakeholders.

Koerl said: “We are proud to welcome Behshad, a world-renowned leader in harnessing generative AI and other advanced technologies, who marries a unique blend of technical expertise and business acumen. His proven track record in developing and commercializing product strategies to accelerate growth and innovation, as well as spearheading initiatives aimed at improving internal operational efficiency, will bolster our leadership position, keeping Sportradar at the forefront of technological advancement.”

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With more than 20 years of experience, Behzadi is a distinguished computer scientist and recognised global technology leader with expertise in algorithms, search ranking, natural language processing, speech recognition, machine learning and generative AI. Behzadi joined Google Zurich in 2006 and has played a key role in Google’s AI-first strategy as co-founder of Google Assistant, Google Lens, Google Smart Display and the Next Gen Assistant, a breakthrough in mobile assistant technology with on-device Machine Learning. Most recently, he led Google Cloud’s Conversational AI and applied Generative AI initiative focusing on applying the latest AI advancements to reimagine and automate customer services and operations for large enterprises. Behzadi earned a PhD in Bioinformatics from Ecole Polytechnique in Paris and did postdoctoral research at the Max Planck Institute for Molecular Genetics.

Behzadi said: “Sportradar is an exceptional company and category leader operating at the global intersection of sports, technology and digital content. I am very excited to join an organization that pushes the boundaries on technology and puts a premium on innovation. I look forward to working alongside Carsten, the rest of the executive management team and their talented group of creators to continue Sportradar’s history of innovation as the Company enters its next exciting chapter.”

The post Sportradar Appoints Behshad Behzadi as the Company’s Chief Technology Officer and Chief Artificial Intelligence Officer appeared first on European Gaming Industry News.

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