The Friday view: mobile revenue gap
The lack of a strong mobile product is being blamed for poor revenues at some leading egaming firms, so get ready for a number of new apps in coming months
Three sets of financial results this month showed very different pictures from the online gambling sector when it came to mobile. The Q3 report from bwin.party showed a 21% decline in revenue put down in no small part by the operator’s lack of a strong mobile product suite. Swedish-listed Unibet meanwhile showed a 28% rise in revenue and casino operator Mr Green saw a 60% rise in revenues.
Mr Green put the rise in revenue squarely at the door of its focus on mobile, and said the firm was well positioned for the technology shift to mobile gaming. Over at bwin.party it was a very different story with mobile just part of the tale behind the 21% decline, but a focus on mobile is a key part of its growth strategy going forward. The Gibraltar-based operator plans a mobile casino launch in Q4 and has recently launched its revamped partypoker on mobile. Sportsbook app updates are also expected.
Over at Unibet mobile was up to 23% of group revenue, from 8% in the previous year, and the firm continues to invest in the mobile and tablet sector. Its recent desktop site redesign was to bring it in line with its mobile and tablet products, not the other way around, and its Unibet Pro betting app has had considerable investment and the relaunch has a host of new features including streaming and push capabilities. Once again new product development is underway there and more mobile launches can be expected.
Throughout the sector in fact the listed operators are pinning their hopes on growth from new mobile launches not just in sportsbook, but also in casino, bingo and poker. There are likely to be a number of new apps launched in Q4 2013 and Q1 2014 as the chasing pack try to catch up. But will this lead to slew of me-too apps and a fresh marketing war? The chances sadly are pretty high. The battle for mobile dominance is only just beginning and it’s about to get a lot more brutal.