Once again, during the company’s Q1 earnings call on Wednesday, Bally’s Intralot CEO Robeson Reeves talked up the operator’s marketing efficiency in the UK.
Reeves said its Bally’s online platform had seen an over-60% increase in new customer volume in Q2, which he attributed to decreased marketing spend from competitors in the UK, in response to the Remote Gaming Duty hike on 1 April.
The CEO also highlighted what he said was the platform’s ability to help players transition over from competing products and remain efficient with its own marketing spend.
“Gamblers are always transitioning between different websites and they sometimes have a break. What we’re seeing is pullback, that’s why things are cheap and we’re getting enhanced volumes. But our technology is proving that when a customer is ready to move, we’re ready to catch them,” Reeves told analysts.
“We look at where the traffic is passing through different placements across the internet and make sure we’re serving the right volume of advertising. To make sure we have the most efficient spend possible.”
The UK remained the largest region for Bally’s Intralot in Q1 at 64% of its group revenue. The market reached €172.1 million in revenue during the three-month period.
The UK online business grew 10.5% on a constant currency basis in Q1, with preliminary April revenues up a further 11.5%.
“We’re definitely seeing the start of consolidation [in the UK],” Reeves added. “The smaller operators are pulling away – that means that the cost of acquisition is declining.” He said this had led to lower RPUs (revenue per user).
Impact of potential financial risk assessments in UK
Reeves was asked about the potential impact of financial risk assessments in the UK, an additional affordibility checking measure currently in development by the Gambling Commission, following a lengthy pilot scheme.
The CEO downplayed the possible impact, saying: “Affordability measures I don’t see as a significant risk to us because our players are much more stable and consistent.
“Our entire platform has been built on this basis anyway, because ultimately if people can afford to spend, they can afford to spend forever. We might not have the highest annual spend for players but when you look at your retention and the stable growth we’re getting that growth because we’re [adding] new customers on top and they become more loyal and concentrate their wallet with us.”
However he warned of possible friction for customers, brought on by the FRAs, noting that policy makers will want players to remain within the regulated market.
“These are the sort of frictions which can create displacement and make for unsafe gambling,” Reeves added.
Evoke Bally’s deal: Work streams are progressing
When probed on the operator’s bid for Evoke, after both companies agreed an extension to Bally’s Intralot’s potential acquisition offer last week, group CFO Andreas Chrysos said the two parties were “progressing on all the workstreams that we have planned”.
He said: “We’re making announcements as required by the UK regulator, and the extension of this original deadline was agreed with the sell side so I don’t want to make any comments that could be interpreted one way or the other, beyond what we’ve already announced.
“There are a number of workstreams that need to progress in order for us to be able to submit a binding off and for the sell-side to be able to recommend or make a decision on whether they recommend or not our proposal. We are satisfied with the progress.”
At Bally’s Intralot’s request, it now has until 5pm BST on 8 June to announce whether it intends to make an offer for Evoke.
Talks between the two companies was confirmed in April, as Bally’s announced it was considering an all-share combination with Evoke priced at £0.50 per share.
Some industry voices have questioned Bally’s Intralot interest in a full acquisition of Evoke, which posted a post-tax loss of £541 million in its FY25. Evoke also has a significant legacy debt burden.
Nicole Macedo
Nicole cut her teeth in local news rooms at home in Gibraltar, and helped to establish the peninsula’s first online-only broadcaster.
Original article: https://igamingbusiness.com/finance/quarterly-results/ballys-intralot-uk-tax-hike-winning-customers/
