2015 Gaming Profit Reports: CIE is Up, Ladbrokes is Down
Gaming industry profit reports from 2015 and the results are a pretty mixed bag. The once struggling Caesars Interactive Entertainment Group (CIE) reported record profits, while Ladbrokes reported its first loss in a decade.
Here are a few tidbits from the latest reports.
CIE Books Record Profits
CIE is a bright spot in a company that’s been struggling through a very rough patch the past couple of years.
Fortunately for the company’s struggling online gaming division, its social casinos were a money making machine. In Q4 2015, CIE reported profits of $209.2 million and the social/mobile division was responsible for a whopping $198 million of that.
Even better, for CIE’s long-term health, their player acquisition and retention numbers are positively smoking’.
CIE has also tapped into a successful formula for getting players to spend real money in the social casino platform, a metric which is absolutely critical for success. According to CalvinAyre.com, CIE’s average revenue per user was $.34, that’s up from $.06 last year.
For the year, CIE reported a revenue increase of $30.6% and a profit increase of nearly 60%.
Ladbrokes Rough Q4
UK gaming company Ladbrokes reported its first loss in more than decade after a dismal Q4. The company says its pre-tax losses will amount to £43.2 million ($60 million USD).
That’s a far cry from 2014 when the company reported £37.7 million ($52.9 million USD) in profits.
One of the main factors in Ladbrokes’ rough year was the newly enacted UK point of consumption tax. That bit of legislation cost the company upwards of £50 million ($70 million USD).
Company officials say they’re optimistic about the future and hope to be back in black in 2016.