Online gambling stocks performance was weak last week, with the companies analyzed losing an average of 3%, while the Nasdaq Composite gained 2%. Better Collective and ZEAL led the ranking with gains of 2% each, while Gentoo Media was the clear laggard at -33%, followed by Grandstand at -7%.

Overview

  • Average growth – On average, share prices analyzed decreased by -3% in the last week.
  • “Winner” – The most significant leap in our sample of online gambling-focused companies was taken by Better Collective with an increase of +2%, followed by Zeal (+2%).
  • “Loser” – Gentoo Media and Grandstand had the worst weekly performance in our analysis, with a change of -33% and -7%.
  • Comparison to the Nasdaq Composite – Compared to the development of the Nasdaq Composite (+2%), the average development of the online gambling industry looks “worse”.

Segment-specific developments

  • Online-focused operators – The shares of online-focused operators included in the analysis saw, on average, a decrease of -1%; with Zeal (+2%) leading the ranking.
  • Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, Caesars is the “winner” with +0.2% while the average share development was -2%.
  • Suppliers – The shares of the suppliers included in the analysis saw, on average, a decrease of -1%. The winner is Evolution with +1%.
  • Affiliates – On average, affiliates’ shares saw a decrease of -8% with Better Collective (+2%) leading and Gentoo Media (-33%) coming last.

The share increase of Better Collective

Better Collective’s modest gain appears to have been a continued positive reaction to its Q2 results released on 20 August, rather than a new major announcement during 24–28 August. The report showed revenue up 9% and EBITDA before special items up 20%, with particularly strong momentum in North America, where CPA and revenue-share income both grew by around 50%.

The decline of Gentoo Media shares

Gentoo Media’s sharp decline followed its Q2 results on 26 August, when revenue fell 9% to EUR 22.9m and the company cut its full-year revenue and EBITDA guidance. The results came in below market expectations, while the ongoing refinancing of its debt added further uncertainty for investors.

 

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