Quote:
Originally Posted by SootedPowa
Yep.....and there it is.
Amaya's business plan was always to grow the casino and sportsbook to be the big source of revenue. I have to admit I was sceptical about their ability to do this simply because of the highly saturated and competitive nature of those markets in regulated Europe. Guess I was wrong so fair play to them for succeeding there.
Quote:
Originally Posted by LektorAJ
89 mil is a drop in the ocean of PS finances even if it has increased 50% from its low base. They have failed to get people who thought they wanted to play poker to play other stuff instead.
Casino (plus small contributions from sports, corporate and other revenue like freeplay) now makes up a third of the group's total revenue. That's very significant - not a drop in the ocean at all. Despite online poker revenue declining in 5 of the last 6 quarters YoY, total group revenue has grown 5%+ every quarter during that period, specifically because of casino. Casino is a big contribution to the group now.
Almost all of this has been cross-sell of casino to poker players. Almost nothing comes from external (i.e., they've barely started to compete in the "highly saturated and competitive" casino industry, as SootedPowa says, at least not directly. That's still to come, and so far untested).
Stars Casino is the largest in the world in active player numbers, and probably a top five online casino in revenue globally. And that's all come in 2 years of cross-selling to poker.
Can't see how that can be seen as a failure.
There have been failures, imo - one is with sportsbook; initially this was touted as a big cross-sell, and they launched big external marketing, and that flopped. Turns out poker players not that into sports and marketing externally turns out to be ultra competitive in markets like the UK, and their product is not up to scratch. Also, down a couple of % points so far this year in poker is a concern and there's a headwind coming (Australia, 2.5% of group's revenue).
But casino has been crazy successful.