Global Gaming unveils affiliate costs
Published 23rd November 2018
Ninja Casino owner Global Gaming spent more than SEK11m - around $1m - on affiliate marketing in the most recent quarter according to its latest financial release.
A strong performance by its flagship site Ninja Casino helped it to hugely increase its revenues and profits in Q3. The online gaming group saw revenues rise year-on-year by 93% to SEK253.1m as its flagship brand, which offers no-registration play, saw net game revenue increase by 11% and deposits rise 9% compared to the prior quarter.
Operating profit increased by 42% year-on-year to SEK60.3m as the group was able to constrain a rise in operating expenses to 64% year-on-year despite its much greater growth in revenue.
It said the cost of performance-based marketing in the quarter constituted about 5% of revenues.
“Dramatically increased competition” in the Swedish market led to the tripling of total marketing costs to SEK68.6m, which accounted for approximately 27% of revenues.
The company said it mainly used CPA (Cost Per Acquisition, Payment per Delivered Customer) in relation to affiliate partners. It said that since August it has also began to use revenue sharing “with limited-scale affiliates”.