The Rigor Of European Regulation Negatively Affects The Industry
Net gaming europe ab, a company engaged in affiliate marketing on many european gambling markets, stated the fall in revenues. All wine tightening rules for work in the gambling markets of european states.
The company’s revenue in the third quarter of the current year was €3.5 million, which is 24% less than in the same period last year.
In addition to the protracted struggle with new regulatory standards, net gaming europe calls another reason for a sharp reduction in financial success indicators – partial transition from the cpa system (prices for attracting users) to the distribution model of income. Among other things, the last procedure occurred in accelerated mode, which also had a negative impact on the company’s work. If in the third quarter of last year the share of cpa accounted for 70% of income, then at present – only 39%.
The company also add that the influx of new deposit clients has decreased by 14% due to increased competition in american and difficulties with european markets.
Despite this, europe remains the most profitable region for net gaming, because it is for this market that accounts for 70% of the quarter revenue.
The operating expenses of the company increased compared to the same period of 2018. In the company, this is explained by an increase in personnel costs with €838 thousand. Before €917 thousand. The company also began to spend more on advisory services related to business development in north america and europe.
Profit before the deduction of interest, taxes, wear and depreciation (ebitda) decreased by 41% and amounted to €1.9 million.
The results of the third quarter give grounds to state the amount of revenue in the amount €11 million, which is 20% lower than last year.
General director net gaming markus tayylman stated that the tightening of regulation in european markets in the short term is still affected by the company’s income.
Recall that the restrictions of gembling advertising entered into force in lithuania.