Acroud Reports Record Growth in Q1 Driven by New Deposit Customers
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Acroud, an online gaming affiliate business, experienced a significant boost in revenue in the first quarter of 2023, with a 32.9% year-on-year increase, thanks to a record number of new depositing customers (NDCs). The addition of 92,659 NDCs during the three-month period ending on March 31, was attributed, in part, to the strong performance of the recently acquired "Paid Media Partnerships" in the final quarter of 2022.
Although the revenue was lower compared to Q4 of the previous year, Acroud observed more positive trends in April and remains on track for year-on-year growth across various areas in 2023. CEO Robert Andersson stated that the first quarter proceeded smoothly while integrating the media unit.
Andersson acknowledged that the decline in revenue was primarily due to unfavorable sports results in February. However, he emphasized that such anomalies tend to balance out over time. Acroud has been addressing the performance of its casino SEO business by shifting focus towards the revenue share model. This strategic adjustment is expected to enhance revenue stability, even if it initially impacts the top line.
Revenue for the quarter amounted to €9.3m, showing an increase from €7.0m in the corresponding period of the previous year. However, there was a 7.0% decline compared to the €10.0m generated in the final quarter of 2022.
When breaking it down, the revenue from igaming affiliation witnessed an impressive 103.0% year-on-year growth, reaching €6.0m. Even excluding the impact of the new acquisition, revenue still experienced a significant increase of 26.0%. The number of new depositing customers (NDCs) in this segment reached a record 76,917, reflecting a 12.0% surge.
Within this total, 78% of the revenue came from revenue share agreements, while 10% was attributed to cost per acquisition, and the remaining 12% pertained to other activities. Acroud provided a breakdown of revenue by affiliation type, revealing that paid media contributed 63%, SEO accounted for 27%, and social-and community-based activities contributed 9%.
In terms of the software-as-a-service (SaaS) business, revenue rose by 23.0% year-on-year to €3.0m. However, there was a 12.0% decrease compared to Q4 of 2022. The number of new depositing customers (NDCs) in this segment increased by 7.0% from Q1 of 2022, totaling 15,742.
Regarding expenses, both personnel expenses and other external expenses saw an increase. The latter constituted the main outgoing expense at €6.2m. These expense increases offset the rise in revenue, leading to a 5.8% decline in earnings before interest, tax, depreciation, and amortization (EBITDA), amounting to €2.1m.
Acroud accounted for €1.1m in depreciation and amortization, as well as €860,000 in net finance costs. Consequently, the pre-tax profit for the quarter amounted to €115,000, marking a 90.9% decrease compared to the previous year. The group paid €182,000 in income tax, resulting in a net loss of €67,000, in contrast to the €1.2m profit achieved in 2022.
"We remain committed to achieving growth, profitability, and value for our shareholders," stated Andersson. "Looking ahead, I am eagerly anticipating the upcoming quarters."