A near fourteen-fold jump in quarterly gaming revenue from its Mexican sportsbook sent investors scrambling for Gana Media stock.
Shares in Gana Media Group (AIM: GANA) jumped 18% on Thursday after the company revealed explosive growth at its Mexican online betting arm, Estadio Gana, with gross gaming revenue climbing to roughly US$2m in the third quarter, a rise of 1,284% on the prior three months.
The rally was driven by evidence that the growth was not simply a World Cup-related blip: betting turnover nearly quintupled to around US$9.9m, registrations hit 87,523, and September delivered a record month even after the tournament had finished, suggesting the Mexican platform has found genuine traction with punters.
Perhaps more telling for investors than the headline revenue jump was the improvement in how Gana Media converts sign-ups into paying customers. The proportion of registered users going on to deposit money rose from just 4% in the second quarter to 16.5% in the third, and has climbed further to 26.6% so far in October, a shift the company credited to fresh investment in its payments and onboarding systems.
Management said it has entered the final quarter of the year with a monthly revenue run-rate above US$1m, and pointed to a packed sporting calendar – including Mexican and European football alongside the NFL season – as a tailwind to keep momentum going into year-end.
While the growth rates are striking, the company itself acknowledged the numbers remain relatively small in absolute terms, underlining both the scale of the opportunity in the Mexican market and the early stage of the business. Investors will be watching whether the improved deposit-conversion rate and record trading can be sustained once the current burst of major sporting fixtures passes.
This report is based on Gana Media Group’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: (Augustin-Foto) Jonas Augustin on Unsplash.
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