CasinoBeats is breaking down the numbers behind some of the industry’s biggest stories. Our latest headline reflection features another round of third-quarter financials from the likes of IGT, Flutter and GiG, as well as an update on New Zealand regulation.
2%
IGT declared revenue for Q3 of $587m, down 2% year-over-year (Q3 2023: $601m) and 3% in constant currency (cc). For the year-to-date, ending 30 September, the company reported a revenue of $1.86bn (2023: $1.85bn).
Q3’s revenue was attributed to “sustained momentum in Italy and improved US instant ticket and draw game wagers”.
Gross profit was also down 5% YoY and 7% in cc during the quarter to $263m (2023: $278m), while operating income fell by 33% YoY to $110m (2023: $163m). YTD, gross profit had declined 2% YoY to $882m (2023: $896m), while operating income was down 9% YoY to $507m (2023: $555m).
Operating income was “driven by a $38m restructuring charge associated with OPtiMa 3.0, a program focused on optimising general & administrative and operating activities following transformational actions over the last several years”.
Q3 net income stood at $43m, down from Q3 2023’s $123m. Broken down, income from discontinued operations stood at $88m (2023: $46m), but income from continuing operations fell to a loss of $46m (2023: $77m income).
Adjusted EBITDA for the quarter was down 6% YoY at $264m (2023: $279m) with a margin of 44.9% (2023: 46.4%). YTD, adjusted EBITDA was down 2% YoY to $880m (2023: $898m) with a margin of 47.3% (2023: 48.6%). IGT noted that the figures highlight the “attractive profit profile of pure play lottery business”.
Reflecting on the Q3 results, CEO Vince Sadusky noted: “Our third-quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure and strong cash generation.
“Over the first nine months, we generated $1.9bn in revenue, led by steady Italy growth and improved third quarter trends in the US. We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play and capitalise on attractive industry dynamics.”
$3.25bn
Flutter Entertainment declared a 27% year-over-year increase in revenue to $3.25bn (Q3 2023: $2.56bn), while average monthly players (AMPs) grew by 16% to 12.9 million (2023: 11.1 million). Excluding US operations, revenue rose by 15% YoY to $2bn (2023: $1.7bn).
For the quarter, net loss improved to $114m, up 56% YoY (2023: $262m loss), which the company says was “driven by strong revenue growth”. The net loss “included non-cash impacts of $128m acquired intangibles amortisation charge and $121m fair value loss on Fox Option liability (Q3 2023 $18m gain)”.
Adjusted EBITDA increased by 74% YoY to $450m (2023: $258m) with a margin of 13.9% (2023: 10.1%). Group ex-US adjusted EBITDA rose by 24% to $392m (2023: $313m).
Net cash from operating activities dropped by 48% to $290m (2023: $554m) “primarily due to the impact of derivative settlements in the current and prior year period”. Free cash flow declined by 74% to $112m (2023: $434m).
Jackson commented: “Flutter had an excellent quarter with revenue growth accelerating to 27%, well ahead of market expectations, and increases to our revenue and Adjusted EBITDA guidance for 2024.”
The group’s 2024 guidance was also raised by 1% across revenue and adjusted EBITDA, reflecting a strong Q3 group ex-US performance.
However, Flutter also said that “excellent US momentum in Q3 has subsequently been more than offset by unfavourable sports results in Q4 to date”.
15
The New Zealand Government has agreed on further details regarding the regulation of online casinos in the country, with 15 operators set to be offered the chance to gain a licence.
Back in July, Internal Affairs Minister Brooke van Velden announced New Zealand’s plans to have a new online casino regulatory system “in place from early 2026”. At the time, the Government stated that the online casino regulation was “designed to minimise harm, support tax collection and provide consumer protections to New Zealanders”.
Online gambling will be prohibited for those aged 18 or over, with operators only able to offer online casino games, not sports betting or lottery. The Department of Internal Affairs will be the regulator.
In addition, licensed gambling operators will be allowed to advertise, but with strict limits in place. Previously, advertising by licensed gambling operators was prohibited. Sponsorship by online casinos will remain illegal.
Providing an update earlier this week, van Velden noted that further decisions have been taken by the New Zealand Government regarding online casino regulation, stating that a new Online Gambling Bill will be drafted.
In July, the Government said that only a limited number would be allocated via auction, each lasting three years and being conditional on meeting regulatory requirements. The total number of licences to be issued has now been revealed to be up to 15.
In addition, the regulatory system will prohibit advertising that appeals to minors, require operators to have age verification systems and the regulator will issue fines of up to NZ$5m (€2.8m) for operators who don’t comply with regulations.
€7m
Gaming Innovation Group has reported more than €7m in revenue for the third quarter of 2024, but an adjusted EBITDA loss of over €1m.
Both of these figures are down compared to the same period last year, with GiG also reporting an operating loss (EBIT) of just under €10m for the quarter.
Despite the results, CEO Richard Carter has voiced optimism for the igaming technology company’s future, expressing Q3 as a “momentous quarter” and that the firm is now “in a better position to expand” its presence in global igaming and sports betting markets.
Publishing its first set of financials since its business split away from Gentoo Media last month, GiG declared revenue of €7.4m, down 21% year-over-year (Q3 2023: €9.3m).
Providing further context on the comparison, the company stated that “2023 results contain €7.8m one-off revenue related to GiG Enterprise Solution sale (2024: €1.3m)”.
Excluding client exits and enterprise revenue, Q3’s underlying revenue stood at €7.3m, up 26% YoY (2023: €5.8m).
During the quarter, GiG also achieved listing on the Nasdaq First North Premier Growth Market in Stockholm, Sweden, under the ticker GIG SDB.
The company noted that the new listing will “enable management to reinvigorate GiG’s sales and marketing activities to help expand the group’s global client reach”.
15
Meanwhile, Gentoo Media published a 15th consecutive quarter of revenue growth for Q3 2024 following its recent split from GiG.
Across the third quarter, Gentoo’s revenue grew to €30.4m to represent a 35% growth year-over-year (12% organic) on previous year’s comparatives of €22.5m in Q3 2023.
Jonas Warrer, Gentoo Media CEO, commented: “I am pleased to present our third quarterly report for 2024, marking yet another record-setting quarter for Gentoo Media, with 15 consecutive quarters of all-time high revenue.
“Our focused strategy on sustainable, long-term growth – emphasising diversification and increased revenue share earnings – continues to strengthen our business. Despite market volatility, our disciplined approach has proven resilient, driving steady success and positioning us with a competitive edge in an increasingly dynamic marketplace.
“We remain confident that our strategic path will support our continued growth and stability in the coming quarters.”
Adjusted EBITDA came in at €14.6m (Q3 2023: €10.4m) reflecting a 48% margin, while group accounts booked ‘special items’ related to the company’s September split from GiG, capped at €600,000.
With special items excluded, EBITDA witnessed an uptick of 36% YoY by growing to €14m (46% margin). Media cash flow operations were valued at €19.9m, while IFRS5 standard platform & sportsbook cash flow was €12.2m.
In total, 58% of revenues were generated from recurring revenue share agreements, an increase of 24% YoY.
Despite headwinds in Norway, Europe-centric revenue increased 51% YoY, while revenue share from the Americas grew by 52%. This growth in the Americas was headlined by more than double digit growth in North America.
Europe and the Americas stood as principal markets, contributing 59% and 21% of quarterly revenue respectively.
