Produced in partnership with AffiliateINSIDER, the inaugural Digital Marketing Forum will take place on Thursday, March 21, as part of the second full day of the Betting on Football conference, which runs from March 19-22 at Chelsea FC’s Stamford Bridge.

Just two weeks before the event, we caught up with Lee-Ann Johnstone, founder and CEO at AffiliateINSIDER, to find out more about the one-day digital training workshop, including some of the key topics, sessions and speakers to look out for.

Why is the Digital Marketing Forum an important event for igaming marketers?

LAJ: “The Digital Marketing forum is for any online marketer who is interested in accelerating their customer acquisition and disrupting their digital strategy to engage a wider audience.

“Whether you are an affiliate entrepreneur, an online marketing manager at an operator brand or simply a general marketing executive looking for new ways to run online strategies – the content we’ve created for this year’s Digital Marketing Forum is going to be useful and relevant to you.

“Digital is constantly disrupting and keeping ahead is key for any business to survive and grow“

“Digital is constantly disrupting and keeping ahead of new tactics to engage wider audiences is key for any business to survive and grow. It’s why we’ve brought together a broad spectrum of topics to help meet these objectives and secured some of the industries brightest digital minds to present and teach.”

Can you explain why are you encouraging those attending to look upon the event as a training day, rather than a traditional conference?

“Our digital presenters are experts in their field. They are also generously contributing their time to teach practical implementation of digital trends. From SEO to linkbuilding, content marketing and AI in the digital age, you’ll be getting access to content that isn’t shared openly anywhere else. You’ll have the opportunity to ask questions and learn new tricks that can growth hack your marketing efforts, as well as help you to think differently about digital and its disruption.

“While conferences offer networking and exhibition opportunities, few offer the depth of content that we’ve packed into our one-day agenda. It’s for this reason I like to think of it as more of a digital training workshop than a traditional high-level conference. I know that delegates will leave the event with a number of new ideas and key tactics to implement that will help their online businesses to grow.”

How can operators and affiliates work better together to meet the challenge of acquiring new players?

“Data is driving the collaboration between affiliates and operators forward. The key emphasis is still on collaboration and this starts with relationships. Understanding both sides of a partnership is key to starting a great relationship.

“Too often, I hear affiliates tell me that they’ve tried to reach out to affiliate managers only to be dismissed as not being important enough to get a deal in place. This is a fundamental error in affiliate management that I see all too often in inexperienced affiliate teams. We forget to be human in the negotiation sales process. It’s hard starting a business, and affiliates have to work really hard to make their commission.

“We forget to take time to listen rather than speak. It’s key to understand that value is not derived only in volume of numbers. It is also borne out of niche relationships that can provide quality customers. Smaller affiliates can do this, and therefore should not be dismissed. Taking the time to understand where and how value can be derived in each contact is a key attribute to building a successful program.”

“The day offers an insight with the aim of supporting business growth and brand building“

What key topics will be discussed as part of the seven-session agenda?

“The focus is on digital marketing for customer acquisition, so we cover all digital marketing techniques that support this. From SEO and linkbuilding on a budget to complex content marketing strategies that support brand exposure in omni-channel environments.

“We also look at the convergence of UX and emotive design to engage audiences and what’s developing in social media and influencer marketing, as well as digital automation. The day offers an insight into all of these areas with the aim of supporting business growth and brand building in our digital era.”

Finally, James Sandberg is one of the latest additions to the speaker set; why should every igaming business be interested in what he has to say?

“James has a wealth of digital marketing expertise and sees the industry from a very different perspective. He has implemented loads of global digital strategies and has a great understanding of audience engagement.

“He’s going to share some really unique insight on how sales funnels and customer lead generation can be automated using some simple digital marketing artificial intelligence to speed up online sales and customer conversion. If you want to grow your business, this shouldn’t be missed. You can watch a bit about his session ahead of the event here.”

Want to attend Digital Marketing Forum? Book your tickets here: https://sbcevents.com/sbc-digital-marketing-forum/#register

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In an earnings call following the third quarter, which demonstrated revenue increases in two of three core reporting segments, Sadusky reserved space to address each of these after group-wide revenue rose eight per cent year-on-year to $1.06bn (2021: $984m).

The first under the microscope is that of igaming, with an array of new market launches in Europe and Latin America alongside a ramp-up of releases expected over the course of the next year. IGT’s digital and betting segment saw revenue increase 27 per cent YoY to $54m (2021: $43m)

Much optimism expressed is aligned to July’s €160m acquisition of iSoftBet, with the studio hailed as boasting “good momentum” and driving “incremental capabilities”.

This latter point, said Sadusky, comes on “both on the platform basis to be able to be best in class in producing digital-first games, as well as having a best-in-class system that makes it easy for third-party games to connect and integrate with us, and take advantage of our significant distribution network.

“And I think that really helps to increase our capabilities in a period where the opening of icasinos through legislation in North America is a bit slower than we originally anticipated. So, I think, you know, all those things feel pretty good in terms of our current view on 2023.”

“Omnichannel games are a key area of focus and competitive advantage”

Furthermore, increased investments are also reportedly delivering “accelerated top-line growth” across digital and betting for IGT, with the integration of iSoftBet “an important driver of the more than 30 per cent revenue expansion at constant currency in the period”. North American online casino and sports betting accounts for “most of the segment’s revenue”.

Sadusky continued: “We are also on pace to double the number of new game launches to about 50 per year. Omnichannel games are a key area of focus and competitive advantage as we look to leverage the success of land-based titles, such as Prosperity Link and Money Mania, in the digital arena. 

“The expansion of our game development capabilities, along with our newly acquired aggregation platform, enables us to develop exclusive selections for our customers who are always looking for ways to differentiate themselves in the market.”

On a retail gaming basis, IGT acknowledges that “cashless continues to attract a lot of attention” as the company aims to become a frontrunner within the space. 

“Our Resort Wallet and IGTPay solutions are making it easier for players to activate cashless functionality and are integrating cash flows at more places throughout the casino.”

Operator adoption of the tech is said to be “progressing well,” with the rolled-out of cashless solution recently taking place at Station Casinos as well as Oklahoma’s Indigo Sky Casino.

After the division saw Q3 revenue reach $379m up 31 per cent to $289m, Sadusky noted that “global gaming’s strong top-line and profit momentum is a product of being a leaner, more focused, and more nimble organisation.”

Elsewhere, in the firm’s flagship lottery segment, where revenue dropped four per cent to $626m (2021: $652m), excitement is being caused via OMNIA, which IGT labelled as “the industry’s first truly player-centric omnichannel lottery system”.

“…we are in a solid path to delivering our fiscal year 2022 commitments”

“It’s a concept our customers are eager for as their portfolios expand into digital,” Sadusky said. “OMNIA provides the capability to manage the whole enterprise from a single point. 

“Lotteries can easily gain insights into their entire portfolio and player base as data is integrated from all sales points in ways that improve a lottery’s ability to market, launch, and enhance games to meet player preferences. It also provides [an] unprecedented opportunity to strengthen responsible gaming programs. We think it’s the future of the lottery industry.” 

In addition a number of further strategic development were cited, including long-term contract extensions with the New York and Georgia lotteries, as well as a new 10-year instant ticket printing contract with the Texas Lottery.

To conclude, Sadusky reiterated confidence through the remainder of the year and beyond: “Our year-to-date results had a good momentum across each one of our business segments. 

“We take it as a clear indication that our strategic focus on driving growth through innovation and optimising our processes and scale is paying off. Our net debt and our leverage are at their lowest levels ever.

“And we returned a record capital to our shareholders. Current customer and player demands remain strong, and we are in a solid path to delivering our fiscal year 2022 commitments.”

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Publishing its 2022 third quarter results, IGT revealed that its global gaming revenue experienced a 31 per cent increase, up to $379m, when compared to the same period in 2021. 

Moreover, its constant currency also grew by 34 per cent on significant increases in machine shipments, average selling prices, installed base yields and intellectual property, as well as multi-year poker site licences.

The second of three segments include IGT’s digital and betting arm that witnessed 27 per cent revenue growth to $54m, 34 per cent at constant currency, with the firm pointing to its icasino performance as a main driver, including the iSoftBet acquisition, new markets in North America and organic growth. 

However, despite recording the highest revenue income of the three sectors, standing at $626m in Q3, IGT’s global lottery sector was down four per cent when compared to the year prior, but up four per cent at constant currency. This, the firm stated, was driven by “strong multi-jurisdictional” jackpot activity. 

Overall, consolidated revenue experienced an increase by eight per cent, 14 per cent at constant currency, from $984m the Q3 2021 to $1.06bn during the same period this year. 

“IGT’s organisation along three business segments enables our teams to be focused on developing and delivering best-in-class products and services,” said Vince Sadusky, CEO of IGT. “The accomplishments are evidenced in accelerated revenue and profit expansion in the third quarter, achieving the top-end of our margin outlook. 

“Customer and player demand trends remain encouraging and IGT’s suite of innovative products and solutions has never been better. In addition, we reached the lowest debt leverage in the company’s history, while returning a record $224m in capital to shareholders so far this year.”

Looking into the group’s operating income, IGT noted that it was consistent with the prior-year period, standing at $211m, but up nine per cent at constant currency.

Breaking down each of the three arms, lottery’s operating income was down 10 per cent, standing at $211m, representing 34 per cent of its margin, despite a lower contribution from Italy and increased investment in research and development. 

Gaming’s income doubled to $65m when compared to the previous year, with digital and betting said to be “relatively consistent” to 2021 at $12m, despite continued investments to fund growth. 

Corporate support and other expenses of $76m, up from $66m in the prior year, driven by higher transaction-related expenses.

Furthermore, IGT reported an adjusted EBITDA of $402m, which the firm stated was stable and up seven per cent at constant currency. Moreover, its net interest expense stood at $73m, down $6m from 2021’s figure. IGT stated this was driven by lower average debt balances.  

“Our strategy to innovate, optimise, and grow is fueling progress across the portfolio,” said Max Chiara, CFO of IGT. “Robust year-to-date cash flows and proceeds from the sale of the Italy proximity payments/commercial services business, in addition to proactive liability management, enabled us to reduce debt to the lowest level ever. 

“This enhanced credit profile provides greater financial flexibility to execute on the broadened, balanced capital allocation strategy presented at the investor day last November.”

Looking into key highlights from the third quarter, IGT pinpointed the aforementioned acquisition of iSoftBet for approximately €160m in July of this year, as well as the completed sale of Italian proximity payments/commercial services business in September for gross proceeds of €700m.

Furthermore, Q3 witnessed IGT strengthen its lottery contract portfolio via a four-year extension in New York and a seven-year extension in Georgia as a primary technology supplier. In addition, the firm inked a 10-year instant ticket printing and service contract in Texas.

Other noticeable achievements included an agreement with Santa Casa de Misericórdia de Lisboa, deployment of its Resort Wallet and IGTPay at Station Casinos properties in Las Vegas and at Indigo Sky Casino in Oklahoma and a multi-year contract with Nisqually Red Wind Casino.

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Amid a “disrupted year” due to COVID enforced lockdowns, Rytenskild asserts that “we have a clear strategy and a focused ambition to grow” as the group reports a 4.3 per cent revenue drop to A$2.37bn (2021: $2.47bn).

Furthermore, Tabcorp, which is in negotiations to offload gaming systems firm eBET to a preferred bidder following a strategic review, saw net profit after tax drop to $6.77m (2021: $269m) as EBITDA fell 22.3 per cent to $360.6m (2021: $464.2m).

In addition to labelling digital market share as the “hero metric for everyone,” Rytenskild noted that “I’m determined for us to be different and to be totally obsessed with creating products and experiences that Australia loves.” 

Continuing: “Our transformation has started. In the near term, we have a clear plan with specific actionable priorities for FY23 including the launch of our new TAB App which is faster, simpler and different. 

“We are improving our customer experience and will better leverage our venue and media assets for customers. 

“Structural reforms to level the playing field with offshore bookmakers will further improve our competitiveness and our opportunity to grow.” 

Tabcorp’s wagering and media division saw revenue drop 5.1 per cent to $2.18bn as EBITDA also fell 26 per cent driven by the impacts of retail closures through the first half of the reporting period as well as inclement weather. Q2 repenings were said to show “promising signs of recovery”.

Gaming services revenue and EBITDA for the year ended 5.3 per cent and 6.4 per cent up to $193m and $75.2m, respectively.

With digital revenue market share through July reported at 25 per cent, the company disclosed that revenue was up 14.6 per cent predominantly due to a 11.2 per cent uptick in wagering and media.

“FY22 was a disrupted year with first half COVID lockdowns in our two largest markets, a record number of race meetings washed out and the priority challenges of a company pre-demerger,” Rytenskild concluded. 

“We are seeing stabilisation in our digital market share, and our total focus is now on executing our strategy to transform and pursue growth. We feel the next results, reflecting this half, will be a good test for the improvements we are making. 

“None of this is possible without our people, and we are working quickly to change our culture and the way we work to be innovative, bold and unified to win”.

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The company updated that following the publication of the UK’s much anticipated white paper, a “better understanding of our future trajectory” will be known and medium to long-term aims will be restated.

Despite tracking revenue increases across all core divisions to record a group-wide 98 per cent uptick to £644m (2021: £325.3m) for the year ending June 30, 2022, it is noted that the time frame was distorted by significant periods of closure, curfews and regional restrictions.

In comparison to the last 12 month period that was unaffected by such measures, that being the year ending December 31, 2019, revenue is down ten per cent.

The firm also cites concerns at inflationary pressures impacting its retail venues, with energy prices through FY 2023 expected to come in at £46m. With exposure to market volatility beyond September, Rank is to implement a number of mitigation initiatives, such as energy efficiency programmes.

Gross profit swelled to £257.5m (2021: -£25.8m), with profit for the year down to £20m (2021: £46.2m). Net debt dropped to £162.6m from £256.7m.

“It was a challenging year for our UK venues businesses, with unexpectedly softer trading across the Grosvenor estate in the second half of the year,” commented John O’Reilly, Chief Executive of Rank. 

“Our nine London casinos … have seen very weak customer volumes”

Grosvenor witnessed a 275 per cent revenue increase year-on-year to £296.6m (2021: 79.2m) but a 19 per cent drop when compared to 2019, with concern expressed at the performance of the London estate.

Despite tracking a significant increase to £101.6m (2021: 26.5m), visitor numbers across the capital, where nine venues are housed that account for 38 per cent of revenue “in a normal year,” are reports as remaining “very weak” until late June.

The rest of the UK’s facilities report revenue of £195m (2021: 52.7m) with staycation hotspots such as Brighton, Blackpool and Bournemouth driving the charge.

“Our nine London casinos, which account for over 38 per cent of Grosvenor’s revenue in normal trading conditions, have seen very weak customer volumes with overseas visitors few in number, and only starting to return in the final few weeks of the year,” O’Reilly continued. 

“The lower than expected Grosvenor trading in H2 led us to reset full year operating profit expectations as announced in Q4.

“Whilst we have been seeing improvements in London in recent weeks, the trading environment across the UK is likely to remain difficult in the months ahead with inflationary pressures squeezing consumer discretionary expenditure and cost increases, particularly in energy prices, putting pressure on profit margins.

“However, we are taking actions to drive further efficiencies in the venues businesses, and we are seeing strong revenue growth in properties which have recently benefited from our accelerated capital investment programme.”

With the impact on the bingo sector reported as being severe “given the importance of an older cohort of customers to visitor numbers,” Mecca has endured a “slow recovery” from the pandemic.

“Performance in our digital business continues to improve against a difficult market backdrop”

Despite revenue being up 149 per cent YoY to £134m (2021: £53.8m) that figure represents a 32 per cent downfall from 2019, with visitor numbers also down 33 per cent from that time.

In Spain, Enracha is said to have “recovered strongly” with a 89 per cent YoY revenue uptick to £30.1m (2021: £15.9m), which is down five per cent from 2019.

Across the digital division, which will see Grosvenor become the final brand to migrate to the RIDE platform by the end of Q1 2022/23, revenue closed up three percentage points at £183.3m (2021: £177.4m).

A three per cent Mecca decrease to £66.9m (2021: £68.7m), was offset by increases of seven per cent at Grosvenor to £49.8m (2021: £46.5m), Enracha/Yo which remained consistent at £21m and other, including Stride legacy brands, increased 11 per cent to £45.6m (2021: £41.1m).

“Performance in our digital business continues to improve against a difficult market backdrop,” O’Reilly noted.

“The transfer of the Rank brands to our proprietary technology platform is supporting revenue growth and a strong improvement to operating margins which we expect to accelerate with the migration of the Grosvenor brand in the coming weeks.”

Amid the aforementioned delay’s to the UK government’s review of gambling regulation, Rank has witnessed a three per cent increase YoY during the first seven weeks of operation through 2022/23.

Digital NGR is up 12 per cent but venues and down a single point, with Grosvenor dropped four per cent despite a gradual return of overseas customer to London and Mecca down two per cent.

“We were disappointed by the delay to the publication of the UK government’s white paper on gambling regulation,” closed O’Reilly. 

“The land-based casino and bingo sectors are in need of long overdue modernisation of the regulations which govern their operation, something which the government recognised in its objectives for the review. We expect Rank to be well positioned to benefit from the review when it concludes.”

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Following losses of $53m, $576m, and $554m across revenue, net loss, and adjusted EBITDA through Q1 which was aligned to new market launches, the segment tracked $152m, -$116m, and -$69m, respectively, in the group’s latest report.

“I expect we will not have a quarter of $100m quarterly EBITDA loss in digital again,” noted Thomas Reeg, CEO & Director, as Eric Hession, EVP, delved into more detail.

“As Tom previewed on our last earnings call, our strong gains in unaided brand awareness have allowed us to scale back our brand-related marketing spend,” he explained. 

“That reduction in combination with the reduced promotional investment environment translated into steadily improving results throughout the quarter. 

“As we look to the back half of the year, we expect a number of significant product enhancements for our customers in key areas such as cash out speed, customer service and parlay and alternative line offerings.”

Caesars also anticipates converting all branded apps and sportsbooks to the Liberty tech stack by the end of 2022, which it is expected will drive the customer experience further still.

“We continue to believe that scale is important for our digital sports betting and icasino and poker offerings and pending regulatory approvals plan to expand into states and jurisdictions where allowed,” he added.

“As a result, we will continue to remain focused on growth through new state launches, investing from a tech perspective on product enhancements and remaining acutely focused on our expenses.”

Furthermore, Caesars issued updates on current projects that are being undertaken, while also noting a potential Las Vegas sale is a “discretionary trade for us,” with Reeg noting “and if we have a trade that makes sense for us, we’ll do it. If we don’t, we’re fine with.”

A land-based facility Horseshoe Lake Charles, Louisiana, is expected to open in December, additional entitled in New Orleans are said to be “progressing well,” and ground breaking is expected to occur on Caesars Danville in Virginia, Harrahs’ Columbus in Nebraska and a casino expansion for Harrah’s Hoosier Park during this quarter.

“These are all exciting projects that will generate a meaningful return on the investment for our company,” stated Anthony Carano, President and COO at Caesars.

“As we look to the remainder of ’22, we remain optimistic about our business as consumer trends remain healthy, especially versus 2019.”

Through the second quarter Caesars has reported a 10.6 per cent revenue increase to $2.82bn (2021: $2.5bn), as a continued Las Vegas recovery complemented a “dramatically” improved digital segment.

This saw Las Vegas surge 33.6 per cent to close the quarter with revenue of $1.14bn (2021: $855bn), with regional tracking a slight 4.1 per cent drop to $1.45bn.

Net loss declined to $123m from an income of $71m one year earlier, as the group’s managed and branded and corporate and other segments dropped to losses of $132m (2021: $13m) and $333m (2021: $329m) to add to the digital performance. 

Las Vegas saw net income increase to $313m (2021: $184m), while regional fell to $145m (2021: $251m).

Adjusted EBITDA declined 3.3m per cent overall to $978m (2021: $1bn), as an increase of 29.3 per cent to $547m (2021: $423m) in Las Vegas failed to offset losses felt across all four other reporting segments.

Regional dropped 15.1 per cent to $513m (2021: 602m), while managed and branded and corporate and other closed Q2 at $22m (2021: $26m) and a loss of $35m (2021: -$42m), respectively.

“Our second quarter results reflect a consolidated EBITDA record for our brick and mortar properties led by an all-time quarterly EBITDA record in Las Vegas and continued strength in our regional markets when compared to 2019,” Reeg said.

“Operating results in our digital segment improved dramatically versus the first quarter and we are optimistic regarding trends in this segment for the balance of the year.”

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Planned for rollout within 15 weeks of order, the Cashless Casino – powered by Acres’ Foundation technology – is said to help “set the stage” for the option of a cashless casino gaming floor “within a few years”.

Noah Acres of Acres Manufacturing Company noted: “Early deployments of Foundation cashless gaming have proven that cashless players increase their play and visitation. As a result, casino operators are increasingly expressing wide-scale interest in deploying cashless gaming technology.  

“However, implementing cashless gaming quickly becomes a burdensome, do-it-yourself project for operators, as they struggle through the limitations of decades-old legacy casino management systems technologies to integrate a payment processor and user interface while solving for dispute resolution and regulatory compliance.  

“These issues have dramatically slowed industry adaptation of cashless gaming. Cashless Casino addresses this challenge by making the rollout incredibly easy and intuitive, as it enables operators to focus on player education and the gaming entertainment experience.”

Additionally, Acres asserts that Cashless Casino can work on any slot machine or table game, including those connected to various casino management systems. 

These legacy CMS solutions continue to account for play and loyalty data, while Foundation processes the entire machine event stream in real-time.  

Looking to the future, casinos can transfer all CMS functionality to Foundation and remove the legacy CMS without any disruption to loyalty, reporting or analytics programs.

Furthermore, casinos can select one or more payment providers, including Everi, Fabicash, Flexia, Koin, Sightline Payments and Trustly. An interface to Marker Trax, a casino marker solution, is also included.  

Acres added: “Cashless Casino allows gaming operators to position themselves for an entirely cashless future in which casinos transition away from physical player cards, kiosks, and direct mail.  

“These legacy technologies and practices are quickly being abandoned by other industries and by implementing Cashless Casino, operators can engage with their customers more easily in the mediums they prefer while also benefiting from operating efficiencies.

“Driving higher loyalty engagement is the core value proposition of our Foundation technology. Incorporating innovative player loyalty features into Cashless Casino is a key differentiator in the player experience.  

“Cashless Casino enables casino operators to significantly improve their connection and engagement with their players.”

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In a 45 minute session at last week’s Canadian Gaming Summit that began with Carrie Kormos, Chief Marketing and Communications Officer for Gateway Casinos, jokingly stating that “as a land based operator myself I feel like I should be in the audience taking notes,” a packed session was taken on a land-based to online journey that closed with a belief that there’s “zero evidence” of a cannibalisation effect.

After being quizzed on the advantages, as well as key challenges and obstacles, facing brick and mortar entities looking to enter the digital realm, Byron Bridger, VP of Commercial and MD of Canada for Light and Wonder, stepped up to the plate.

To begin, the necessity of making players feel at home through replicating the land-based experience was shared, in addition to needing to create a reciprocal relationship across both sides of these gaming operations.

“I think first and foremost, from that perspective, your existing database and your brands are definitely core components of an effective strategy that gets you into the digital space,” Bridger noted.

“And my first recommendation would be to get there as efficiently as you can to take advantage of that player community, but finding ways to create connections between your land-based experience and your digital experience is absolutely paramount to create that seamless feel for players, they want to be able to experience your brand, as they do land-based, as much as possible in that digital realm.” 

“you don’t have to go out and acquire customers the way that other new entrants to the market do”

Andrew Crowe, SVP of Business Development for Sightline Payments

As talk shifted across an array of elements that combine to deliver a digital gaming experience to players, Kormos asked the panel on best advice and practices that would be offered to partners and regulatory agencies to support land based operators that are looking to enter the online space.

Andrew Crowe, SVP of Business Development for Sightline Payments, got things underway by underscoring the importance to engage early and often.

“Engaging early and often, and really treating it like a partnership with the regulators so they understand how to work with you and apply the right regulations to what we’re contemplating as we move forward,” he noted as guidance.

Before later moving on to note: “Keep in mind your existing customers are one of your greatest assets. So while others are working to acquire customers, you’ll be working to support your existing customers in a new channel. 

“And it gives you the opportunity to now engage that customer when they’re off property as well. So I think there’s a tremendous amount of upside for you.

“And again, you have an asset, you don’t have to go out and acquire customers the way that other new entrants to the market do. So you’ve got to really, really work to leverage that component as well.”

Jason McCulloch, Director of iGaming and Analytics at Galaxy Gaming, offered his insight by stating that: “I would just add that if you’re new to markets such as what happened here in Ontario, and you’re an operator in land-based, understand what was already available in the market before you start going down the regulatory way. For instance, the grey market here in Ontario still exists. It’s been here it’s not going anywhere. 

Adding: “So understand what was there before so that you can understand where you know what your competitor actually is and where you fit in.”

“I’ve seen no evidence that launching a digital property has any type of cannibalising factor”

Byron Bridger, VP of Commercial and MD of Canada for Light and Wonder

Furthermore, Bridger looked at the matter from a regulatory standpoint, highlighting the necessity to be “conscious and deliberate in the outcome that you’re trying to achieve and respectful of the constituents that are part of the industry,” he commented.

“Because I think some of the best areas where you can see value proposition is when you have balance across those who are there before, those who exist in grey spaces, and those who want to come into a regulated environment.”

As the sessions drew towards a close, conversation naturally led down that familiar and well trodden path of the cannibalisation effect for a land-based entity upon introducing an online component.

“…there’s just no evidence that we’ve seen that having an online presence detracts from, or cannibalises, land-based at all,” Bridger continued.

“We’ve seen much the opposite. We’ve seen an amplification of revenues. And we’ve worked with brands that have had the great fortune of owning the land-based and the digital ecosystems and being able to leverage both of those together, so maybe that context helps. 

“But, I mean, I’ve seen no evidence that launching a digital property has any type of cannibalising factor on land-based, and to the player growth perspective it gives you new ways to engage the player community. So, I think it’s extremely beneficial.”

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A 26 per cent rise to $175.6m (2021: $139.1m), helped along by a quarterly record in recurring revenue of $134.4m, is driven by uptick across both core reporting segments.

The provider of land-based and digital casino gaming content and products saw its games segment grow 29 per cent through the quarter to $98.3m (202: $76.1m).

This, said the group, reflects an increase in gaming operations revenue, inclusive of a 129 per cent rise across digital, as well as a 56 per cent uptick in equipment and systems.

Fintech revenue during the quarter reached $77.3m, up 23 per cent year-on-year from $63m, reflecting increases of 29 per cent in financial access services, 36 per cent across hardware sales and three per cent in software.

Randy Taylor, Chief Executive Officer of Everi, noted: “Our games segment results benefitted from ongoing operating momentum as reflected in the 12^th consecutive quarter-end increase in our installed base of gaming operations units, and a 56 per cent year-over-year increase in sales of gaming machines to 1,474 units as we continue to grow our ship share, thanks to the success of our expanded portfolio of player-popular games and differentiated cabinets.”

Adding: “For the second consecutive quarter, our fintech segment generated record revenues and Adjusted EBITDA. The record quarterly performance was driven by increased revenues from financial access services, strong quarterly kiosk sales and the ongoing organic growth of our loyalty and regtech solutions. 

“These results reflect our ability to offer industry-leading, integrated solutions that help drive consistent market share gains and increases in same-store activity. 

“We believe our fintech business is positioned to grow through the addition of new customers and the deployment of an increasing number of innovative products.”

Operating income increased 31 per cent to $52.6m (2021: $40.2m) due to higher revenue and lower depreciation and amortisation expense that was partially offset by a higher research and development outlay.

Net income was up 54 per cent to $31.5m (2021: $20.5m), with adjusted EBITDA for the first quarter increasing 19 per cent YoY to $89.6m from $75.4m.

Taylor explained: “We delivered record first quarter financial results, including revenues, net income, adjusted EBITDA, and free cash flow. 

“Our performance was a strong start to the year and reflects our talented global workforce’s successful delivery of innovative, high-value solutions that continue to generate increased demand due to their ability to help our customers grow their businesses and improve their cost efficiencies.

“The improved operating results, led by growth in our high-margin recurring revenue streams, which were up 23 per cent year over year to $134.4m, are translating into sustainable free cash flow. 

“This enables us to continue prioritising return-focused investments that will grow our addressable markets, further support our internal product innovation and pursue additional accretive, scalable acquisitions.” 

Adding: “Given the ongoing strength of our business and our growth opportunities, we expect to remain on track to deliver continued year-over-year growth in 2022.”

Everi anticipates its second quarter performance to fall in line with, of be slightly higher than, its record set one year earlier, with increases across revenue and adjusted EBITDA anticipated for the year.

This has seen the company slightly raise the upper boundary of its AEBITDA range for 2021 to fall at $368m-$378m from a previous estimate of $368m-$376m.

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According to the headline figures, consolidated revenue came in at $1.1bn, up four per cent as reported and seven per cent at constant currency, from $1bn in the prior year. Global gaming revenue increased 42 per cent to $325m, driven by significantly higher product sales revenue and higher active installed base units, said the firm.

Digital and betting revenue, meanwhile, was ahead by 24 per cent to $47m, as double-digit growth across activities continued. The year-over-year increase, said IGT, was driven by market expansion, organic growth, and timing of jackpots

Operating income of $252m, compared to $260m in the prior year, was down three per cent as reported but up two per cent at constant currency

Global lottery revenue fell to $680m compared to $749m in the prior-year period. That included $95m in prior-year benefits from Italy gaming hall closures, higher multi-state jackpot activity, and incentive accruals related to LMA agreements. According to IGT, the segment’s operating income was down, primarily due to about $80m in prior-year benefits. 

Adjusted EBITDA came in at $433m, compared to $450m in the prior-year period, matching the prior year’s record level at constant currency. Net income was $117m versus $138m in the prior-year period, driven by a reduction in foreign exchange gains, partially offset by lower income taxes and cost of debt

Turning to net debt, that fell marginally to $5.8bn compared to $5.9bn at December 31, 2021, with net debt leverage of 3.5x described as stable compared to December 31, 2021.

CEO Vince Sadusky told investors: “The first quarter results clearly reflect the power of our portfolio. The quarter’s strong margin profile highlights the long-term recovery of the gaming business as well as increased levels of lottery play from pre-COVID periods.

“The company’s initiatives around a simplified corporate structure have resulted in strong liquidity as we continue to invest in product development and return capital to shareholders.”

CFO Max Chiara commented: “This quarter marks excellent progress on the profitable growth trajectory outlined at our November 2021 investor day. The benefits we are realising from continued discipline around cost and cash flow management are evident in profit margins that are among the highest in the last three years and in significantly lower interest expense. 

“We are on pace with our leverage target for the year and expect further improvement with the expected proceeds from the announced asset disposition.”

Among the operational highlights during Q1 was the launch of the high-performing IGT PlayCasino games in West Virginia, alongside expansion of the firm’s digital footprint to five US states, and in Ontario, as the market expands to include commercial operators.

IGT also saw extended sports betting momentum through strategic agreements with Meruelo Gaming and Kalispel Casino. 

Reaffirming its full-year revenue and profit outlook and introducing the Q2 2022 outlook, the firm predicted full-year revenue of $4.1bn to $4.3bn, cash from operations of $850m to $1bn and capital expenditure of $400m.

Second quarter revenue, meanwhile, is expected to come in at the $1bn to $1.1bn mark with an operating income margin of 20 per cent to 22 per cent. The outlook, said IGT, is based on EUR/USD exchange rate of 1.12; and excludes the impact from the sale of its Italian commercial services business.

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