Angler Gaming's Q1 2025: Profit Soars Despite Revenue Dip
Angler Gaming's Q1 2025 financial report reveals a surprising profit increase amidst declining revenues.
Sammanfattning
Angler Gaming reported a 64.43% increase in net profit for Q1 2025 despite a 24.82% drop in revenues, driven by a new B2B model and cost efficiency.
Angler Gaming's latest financial report for the first quarter of 2025 presents a compelling narrative of strategic shifts and financial resilience. Despite a notable 24.82% decrease in revenues, dropping to €8,184,154 from €10,885,611 in the same period last year, the company managed to achieve a significant 64.43% increase in net profit, reaching €1,356,431.
The decrease in revenue is primarily attributed to the implementation of a new B2B business model. This strategic shift led to renegotiated agreements with B2B partners, which adversely affected revenues but significantly reduced costs. Under the new model, all payments-related costs are now borne by the B2B partners, allowing Angler Gaming to focus resources on its proprietary iGaming platform.
CEO Thomas Kalita highlighted that the lower revenues were also due to higher customer winnings in the latter part of Q1. However, with a 4.79% increase in customer deposits on their iGaming platform, the company is optimistic about future growth. The EBIT margin improved to 21.17%, up from 14.41% last year, reflecting the company's effective cost management strategies.
PremierGaming Ltd, Angler's subsidiary focusing on Northern Europe, contributed 6.67% to the Group's revenues. The subsidiary showed an increase in active paying customers, indicating strong customer engagement despite the challenging revenue environment.
Looking forward, Angler Gaming continues to innovate with Marlin Media Ltd, its affiliate marketing arm, which recorded a 90% increase in organic traffic. The launch of a new proprietary casino information database platform and strategic AI investments further position Marlin Media for future success.
While the trading update for Q2 2025 indicates a 16% decrease in average daily net gaming revenue compared to the same period in 2024, the company remains optimistic. With a debt-free balance sheet following the repayment of €1,000,000 in short-term borrowing, Angler Gaming is well-positioned to capitalize on its strategic initiatives.
Given the company's strong profit growth and strategic positioning despite revenue challenges, investors might consider holding their positions in Angler Gaming. The company's focus on cost efficiency and innovation could yield positive long-term results.
Källa
Sammanfattning
For the first quarter of 2025, the company reported a 24.82% decrease in revenues compared to the same period last year, totaling €8,184,154. Despite this, EBIT rose by 10.47% to €1,732,394, and net profit increased by 64.43% to €1,356,431. The EBIT margin improved to 21.17%. Earnings per share were €0.0181. PremierGaming Ltd, a subsidiary focused on Northern Europe, contributed 6.67% of the Group's revenues. The company implemented a new B2B business model, which adversely affected revenues but positively impacted costs, as B2B partners now cover payments-related expenses. This resulted in a lower cost structure for the Group. Early in the second quarter of 2025, average daily net gaming revenue was 16% lower compared to the same period in 2024. In Q1 2025, the Board proposed a €1,000,000 dividend for fiscal year 2024. Marlin Media Ltd, an affiliate marketing company, recorded a 90% increase in organic traffic and aims to break even by Q1 2026. PremierGaming Ltd saw an increase in active paying customers. Post-Q1 2025, the Group published its Annual and Sustainability Report and became debt-free by repaying a €1,000,000 loan. Marlin Media launched a new casino information platform and expanded its operational portfolio to five sites. CEO Thomas Kalita noted the revenue decline was due in part to the new B2B model and higher customer winnings. However, there was an increase in customer deposits on the iGaming platform by 4.79%. The focus on cost control and the new B2B model significantly impacted EBIT and net profit positively.
