Very profound suggestions! Investing in consumer mind share for evolution to be the go-to online gamble gaming provider for fairness and fun is a good way to allocate some capital for triggering further growth and widening moat.
I think that the marketing in the igaming industry is limited by regulatory constraints, like the Cap Code in UK, prohibition in Italy and Belgium, Spain limits the hours and is prohibited to use celebrities and so on…So they are limited in reaching a broader audience, only getting the chance to promote their products in industry events like ICE and through the operators. So I would preferer the deployment of cash in R&D and strategical acquisitions. But if the regulatory environment turns to be more favourable, yes i agree with the creation of a marketing department. The new niche they created, the game shows, would benefit a lot!
Ali, the key decision is whether to own the consumer relationship or not. Switching costs are real when consumers seek EVO games instead of the casino.
Appreciate the letter, one point of note is that one must consider the risks that come with direct consumer awareness.
Companies are easier targets for the attainment of political capital when a brand name is firmly implanted into the end-users mind. This does not of course exclude any consideration of a more direct consumer awareness strategy, but simply a consideration to keep in mind.
I appreciate these thoughts.
One of my current worries as a shareholder is that players seem to play EVO games if available on a platform.
But they wouldn't switch platform to play EVO games, if the current platform doesn't provide the games.
Your ideas could mitigate this.
So I'm fully in favor.
Very profound suggestions! Investing in consumer mind share for evolution to be the go-to online gamble gaming provider for fairness and fun is a good way to allocate some capital for triggering further growth and widening moat.
Exactly!
Like McDonald's: they do the marketing, even though most of their restaurants are run by franchisees (operators at Evo).
considering the current difficulties, the biggest opportunities are:
1) Finally getting North America right and growing to the size of Europe or Asia
2) Making Brazil and Philippines work (these 2 points should compesate the loss in Europe, next 2 quarters are going to be tough)
3) keeping on buying back shares at these prices (i would not mind 500m debt to repurchase share at 600SEK)
Do you still believe we can go back to previous growth?
40-50% growth seems unlikely but I'd hope that there is enough potential for continued double-digit growth
Who grabs the unregulated part?
Exactly
My projection was 15% growth
However if they lose the whole unregulated business it would take them 5-6 years to get back to 2024 revenue.
So either they would let it go slowly or there's more pain to suffer in the next 2 years
I think that the marketing in the igaming industry is limited by regulatory constraints, like the Cap Code in UK, prohibition in Italy and Belgium, Spain limits the hours and is prohibited to use celebrities and so on…So they are limited in reaching a broader audience, only getting the chance to promote their products in industry events like ICE and through the operators. So I would preferer the deployment of cash in R&D and strategical acquisitions. But if the regulatory environment turns to be more favourable, yes i agree with the creation of a marketing department. The new niche they created, the game shows, would benefit a lot!
It's a great idea, they can trial it and measure the results.
Ali, the key decision is whether to own the consumer relationship or not. Switching costs are real when consumers seek EVO games instead of the casino.
Appreciate the letter, one point of note is that one must consider the risks that come with direct consumer awareness.
Companies are easier targets for the attainment of political capital when a brand name is firmly implanted into the end-users mind. This does not of course exclude any consideration of a more direct consumer awareness strategy, but simply a consideration to keep in mind.
Thank you.
True!