"a leading UK-based online marketing business specialising in bingo and casino games. As at 31 January 2009, Cashcade's websites had approximately 2.2 million registered players and over 460,000 cumulative active players. Its core owned bingo websites include Foxy Bingo, Think Bingo, Cheeky Bingo and Bingo Scotland. Core owned casino websites include GetMinted and Foxy Flutter. Cashcade also supports the branded bingo and casino websites of three media organisations - Trinity Mirror plc, STV Group plc and Emap plc."
What makes really interesting reading is the following line from the press release:"In the year ended 31 December 2008, Cashcade generated net revenue of £44.9m (2007: £28.5m) and earnings before interest, tax, depreciation and amortisation ("EBITDA") of £12.2m (2007: £4.9m) implying an acquisition multiple of 5.9 times 2008 EBITDA"
What this is saying in effect is that PartyGaming paid almost 6 x the annual profits for Cashcade. That's a very nice multiplyer and goes a way to showing how competitive the online gaming sector is and the value placed on registered users. What I also found very interesting was this article from Reuters where PartyGaming Chief Executive Officer Jim Ryan said that the global online bingo market is projected to grow in size to about $2.5 billion over the next four years. If you stop and think about it, that is a staggering valuation, I can't think of many other sectors that can match it. It's for this reason that I recently relaunched Bingo.org.uk. The online bingo sector is so vast and competitive, and there is so much cash floating about, that I hope to sell the site once I get back on the first page of Google for some good bingo related search terms. The site is slowly beginning to gain traction now that I am feeding it with fresh content, so hopefully we'll see some more movement up the serps soon. For now, £150k will get you the site :) What I'm listening to right now: The Perfect Chill
Welcome to my blog. My name is Kieron Donoghue and I am the founder of ShareMyPlaylists.com, ContentNow.co.uk and some other stuff. I have no idea why I'm blue on this photo though but I like it!
Hi Kieron, I hope you are successful with your bingo website, and are able to turn a good profit of it! That would awesome for sure!
Till then,
Jean
When I started reading this post I immeadiately thought of your Bingo.org.uk URL. The nice thing about the .org is that you can use a charity aspect to really drive your bingo site, if you so wish.
That’s good news! Online gambling is really big, and I think many owners of these type of websites have a lot to look forward to. Dude, you are in a great niche.
Are you subtly suggesting 150k is 6 times your current profit on bingo.org.uk?
It’s actually not far off, if current revenue continues. But I am also factoring in the value of the domain name. Bargain
Congrats, that sounds very tidy! Out of curiosity, how do you value the domain name? Is there a science to it?
If you think aboout it £150k on a 6 x multiple is only £25k a year or just under £2,100 a month. Not a lot at all, I know tons of bingo sites that make much more than that. No, no science to domain name valuation at all. Pick a number
Hi Kieron,
I like your domain name. It is pretty cool. I wish to success in bingo.
I wish I could sell some of my sites at 6 times annual earnings! Good luck with your bingo site – it is a good domain. Actually – you seem to have a number of good domains – how did you manage to get them? Did you get them early on, buy them off somebody or manage to get them when they dropped?
Likewise, I also immediately thought of your bingo.org.uk site. First thing I did was to see where it was in Google – page 4. I can only assume you are getting your traffic from longtail words or via PPC. Good luck either way.
That’s lot of money. This is really a good vertical to focus on for the future. I’m going to register some domains now
Hi, believe it or not it was free when I went to register it. Paid about £3 for it
Wow! I really wish I’d thought about registering a lot of good domains when I started out in this 10 years or so ago – there were probably plenty of good ones around then!
I just assume now that all the 1 word domains have been bought up, no matter how good or bad they are, so never even look for them!
I’ve got bingoheaven.org.uk if your interested in buying it? Send me a PM via the a4u forum if you are.
For all of us out there who promote bingo sites via affiliates etc this is great news. To think that online bingo isnt going to peak till 2012 is excellent.
Its possible that the top affiliates are on £25k a month in online bingo.
…and them some. I know some guys who clear £50k to £100k a month from just one operator.
Does anyone have any useful tips on how to get the other half off of bingo starts and how to concentrate on her bingo affiliate website?
On that note Cheap Dvds guy… If we all knew what we know today… I am sure most of us would been billionaires right now =D, at the least millionaires for sure!
Till then,
Jean
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The only downside for me is creating unique content and reviews of bingo sites as I don’t play it. Guess I should try outsourcing my content :-s
£71.9m is an insane amount of money. I have no idea what I would do with that kind of cash. I think I speak for us all when I say most people would be happy with just £1 million never mind £71.9m.
It would be nice to see if it was a good investment and how much the site is worth today.