H2 Gambling Capital’s analysis of the Q2 2022 reporting season reveals the performance of the global gambling industry. Despite ongoing challenges due to the Covid-19 pandemic, global revenues saw an 11% year-on-year increase in Q2. H2’s expanded corporate research service now covers over 65 gambling businesses worldwide, generating annual revenues exceeding €100 billion.
Q2 2022: Key Takeaways:
While Q2 gambling company revenues have not yet fully recovered to pre-Covid levels, they experienced an 11% year-on-year increase and a 5.5% growth compared to Q1 2022. However, there remains a significant performance gap between the retail and online sectors, as well as variations across different geographical regions.
Online Revenue Performance:
Online revenues exhibited an 8% year-on-year growth and a 6% quarter-on-quarter increase. B2B revenues were the primary driver of year-on-year growth, with a 17% increase, while B2C revenues showed a 7% rise. However, in terms of sequential growth, B2C outperformed B2B, recording a 7% increase compared to Q1 2022, while B2B experienced a slight decline of 0.5%. Among operators providing a breakdown of their B2C operations by product:
– Sports betting revenue saw a 5% year-on-year increase and an 11% quarter-on-quarter growth.
– Gaming revenue demonstrated a 10% year-on-year rise, but only a 2% increase compared to the previous quarter.
Land-Based Revenue Performance:
Land-based revenues experienced an 11% year-on-year growth and a 5% quarter-on-quarter improvement. However, these revenues remained 21% below pre-Covid levels recorded in Q2 2019. Geographically, there was a notable discrepancy:
– Asian land-based revenues, primarily affected by Macau, continued to decline, remaining 74% lower than Q2 2019.
– Non-Asian land-based revenues, on the other hand, showed an 11% increase compared to Q2 2019.
Earnings Growth:
While some major companies do not report earnings quarterly, a comparison of adjusted EBITDA shows a 5% year-on-year decline. However, Q2 2022 demonstrated a significant improvement, with a notable 18% increase compared to Q1 2022. Despite this recovery, earnings remain 29% below Q2 2019 levels. Land-based EBITDA continues to lag, remaining 35% lower than Q2 2019. Online EBITDA for the reporting companies is 5% below Q2 2019 figures, largely influenced by US-facing operators reporting substantial quarterly losses.
H2 Gambling Capital Corporate Research Service:
H2’s expanded corporate research service offers comprehensive coverage of over 65 global gambling operators, suppliers, and affiliates. This service provides detailed analysis of company results, newsflow, conference call notes, and financial models for each entity. Aggregating this data offers valuable insights into industry trends and combined operator financial performance. Additionally, the service includes market share analysis of major markets such as the UK, Italy, Sweden, and Australia, along with monthly state-by-state market share information for the US sports betting and iGaming markets.
The Q2 2022 analysis of the global gambling industry reveals a positive overall revenue growth of 11% year-on-year. However, the industry has yet to fully recover to pre-Covid levels.The online segment continues to thrive, experiencing substantial growth in both B2B and B2C revenues. In contrast, land-based revenues still face challenges, particularly in Asian markets, primarily due to the lack of recovery in Macau. Despite the ongoing pandemic impact, the industry’s resilience and the availability of comprehensive research services like H2 Gambling Capital’s corporate research offering provide valuable insights to industry stakeholders and investors.