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Stockpicker intervjuar Vici iGAMING

Stockpicker intervjuar Vici iGAMING

Vici iGAMING är ett svenskt holdingbolag med det helägda dotterbolaget Vici iGAMING Operations Ltd med bas på Malta. Bolaget grundades av personer som tillsammans har mycket omfattande erfarenheter och tidigare framgångar i digitalt entreprenörskap, iGamingindustrin och finansbranschen. Bolaget befinner sig i spjutspetsen av den moderna affiliateindustrin och optimerar leadsgenerering till iGamingoperatörer.

Could you tell us a bit about yourself and your background?

I have over 22 years’ experience in the gambling industry, with 19 of those in online/ digital. Having begun at a start-up in 2000 ( my roles since have included MD (Betfred Online), COO (Nektan), Head of Digital (Sportech) and Marketing & Operations Director (Football Pools).

I also run a successful management consultancy which has included interim


Nick Mounteer, VD

roles as Operations Director of Playtech B2C for Sun Bingo, CEO of Flipper (an energy switching start-up) and CEO of Reality Races (a tech start-up providing innovative content for media owners and gambling operators).

I am as much at home with start-ups and new brands as I am with larger, more mature organisations but the thrill of growing a new business is the one that gives me the most pleasure.

Please give our readers an introduction to Vici iGaming

Vici iGaming is a start-up founded by a number of incredibly successful entrepreneurs and tech experts. We see huge opportunity in lead generation for the iGaming industry, particularly in the Nordics, and, having spent around six months analyzing the market and competition have now launched our first brand – We are a fast-moving business and will be rolling out additional brands and territories during the second half of 2019.

Could you elaborate on Vici iGaming's business model?

We are an affiliate business focused on the iGaming industry. Our model is to use our expertise and technology to find high value leads for gambling operators who, in turn, reward us financially for providing them with these customers.

We use our bespoke technology and digital expertise to consistently appear in the top places for both organic and paid for search in Google and other search engines. By targeting the right keywords and using our experience to optimize the conversion funnel, we deliver high quality leads to our gambling operator partners. They the pay us for delivering these customers, either as a one-off payment (CPA), a share of revenue generated by each customer or a hybrid of both models.

We have a multiple brand and territory strategy based on learning – we will use the learnings from the first brand and - once we have established a winning formula - will 
 launch the second and so on, thus ensuring a fast and effective rollout throughout Europe.

Vici iGaming is currently raising 10MSEK in a Public share issue. How are you going to use this money? 

In summary, people and marketing funds - the mix is roughly 2/3 people and 1/3 marketing spend. The funds will enable us to secure the expertise we need to deliver success and also execute our strategy of multiple brands in multiple territories.

The capital raise will finance the operation until break even, and the company will finance further growth over the operations.

What can you tell us about of your plans for a listing of the share? 

We are planning to list on Spotlight in 2020. In connection with this, the company is part of Spotlight's new program to assist companies up to the listing, GoPublic.

How does your competition look like and what do you do better/ differently than your peers?

Our competition is a mixture of smaller, start-up affiliate brands and larger businesses, such as Catena Media, who have grown both organically and also via acquisitions.

What we will do better is to invest in content, which will be key to our success. We have engaged some of the best copywriters within the iGaming industry to write quality content, with guidance from our leading SEO-experts. We will also produce video content, both live and recorded in several digital channels This has never been done before in several of the markets we are addressing.

With a strong focus on SEO and a significant investment in valuable, relevant content and innovative media elements on our sites we are aiming to reach top SERP ranking on Google searches originating from each respective country within a short time frame.

What are the biggest risks related to Vici iGaming’s operations?

In the iGaming industry, changing regulation is often the biggest risk to business. The landscape has changed so much in the 20 years I have been in the industry, from zero regulation to prohibition to country by country (or state by state) regulation. What I would say, however, is that most territories around the world (including the US) are moving away from prohibition towards regulation. Any business in iGaming needs to be able to respond quickly and adapt to changing market conditions. As a new and young business, we feel well equipped to be able to cope with any such changes.

What is the size of Vici iGaming's potential market?

The iGaming affiliate market in Europe is currently worth around €5.3bn and is predicted to reach €7.5bn by 2023. With only a 1% market share, Vici iGaming's share of this market in 2023 would be €75m, and our ambitions are much greater than that.

According to you, why is buying shares in Vici iGaming a good investment?

Because this is a growth industry that still has a lot of opportunity and where competition is not that strong, with the exception of a handful of businesses. You only have to look at recent acquisitions in the space to see the potential value of Vici iGaming:

·         Magenti Media €4.5m (5,000 FTDs per year)

·         Casinotoponline €11.5m (25,000 FTDs per year)

·         STK Marketing €26m (46,500 FTDs per year)

What is your long-term vision for Vici iGaming? Where do you see the company 5 years from now?

We’d like to be the number one provider of high-value leads in the iGaming sector across Europe.

Unlike, for example, Catena Media, which has entered other verticals such as financial services, Vici iGaming will rather focus on further growth within the iGaming sector. We see large markets such as the USA and Asia as exciting growth areas, in addition to new digital platforms. The majority of gambling revenue is still at physical casinos, and we believe that new digital platforms and user experiences will result in a larger share of this revenue going online in a few years. Vici wants iGaming to be an innovative player.

As the iGaming industry is changing at an increasingly rapid pace, we also see that in order to stay relevant, adapt and continue growing down the line a strong focus on R&D will be needed. As such we are currently exploring many different ideas on new innovative iGaming affiliate systems including new paradigms such as AI/Machine Learning, VR and Blockchain technology within its segment.


Information om emissionen

Teckningskurs: 7,60 SEK/aktie

Teckningsperiod: 5 juni-20 juni

Emissionsbelopp: 10 MSEK

Värdering innan Erbjudandet: 19 MSEK

Handelsplats: Planerad notering Spotlight Stock Market 2020

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