iGaming Business 5-Year 3 Statement Financial Projection Model

Entertainment, Financial Model, Gambling, Game Centers & Arcades, Mobile Apps, Online Businesses

5-year Financial Projections, Break-Even, Budget, Business Valuation, Dashboard, Financial Analysis, Financial Debt, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Forecast, Forecasting, Income Statement, Loans, Monthly Recurring Revenue (MRR), Profitability Analysis, Startup Financial Models, Tax Assets, Terminal Value, Three Statement Model | Three Financial Statements, Valuation, WACC (Weighted Average Cost of Capital)

PURPOSE OF MODEL

An iGaming business offers online gambling services such as casino games, sports betting, poker, bingo, and lotteries through websites and mobile platforms. These platforms allow users to bet or play for real money, generating revenue through mechanisms like the “house edge” and live dealer games. Essential products include virtual sports and esports betting, all while ensuring security, fairness, and regulatory compliance.

Our versatile and user-friendly Excel model provides a comprehensive 5-year rolling financial projection (Income Statement, Balance Sheet, and Cash Flow Statement) with a monthly timeline, ideal for startup and existing iGaming businesses. It allows the modeling of up to 15 subscription products alongside other income streams, direct expenses, staff costs, marketing, operating costs, and taxes. The model adheres to financial best practices, featuring built-in instructions, item explanations, checks, and input validations. It also includes a comprehensive dashboard summarising projections in table and chart format and a discounted cash flow (DCF) valuation calculation to help assess the business’s financial plans and potential value.

KEY OUTPUTS

The key outputs include:

Projected complete financial statements (Income Statement, Balance Sheet, and Cash flow Statement) presented monthly across five years and summarised annually.
Dashboard with:
- Summarized projected Income Statement and Balance Sheet;
- Compounded Annual Growth Rate (CAGR) for each summarised income statement and balance sheet line item;
- List of crucial subscription metrics, including Average Revenue Per Customer (ARPU), Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), Churn Rate, Customer Lifetime Value (LTV), and Customer Acquisition Cost (CAC);
- Other vital ratios include average revenue growth, profit margins, return on assets and equity, and debt-to-equity ratio.
- Tables and Bar charts summarizing revenue, direct expenses, and user volumes by-product product;
- Charts and graphs showing cash balance by month, free cash flow generation, cash flow statement breakdown, profit margins, income statement breakdown, net cash vs net income, working capital, valuation, and capital structure.
Discounted cash flow valuation using the projected cash flow output.
Breakeven analysis

KEY INPUTS

Setup Inputs:

Name of business.
Currency.
First projection year and month.
Naming for subscription products, other income, direct expenses, staff costs, marketing costs, operating costs, fixed assets, and borrowings.

Actuals Inputs:

Opening balance sheet (for existing businesses);
Income Statement actuals (for trend analysis);

Projection Inputs:

Subscription-based product assumptions, including new users, churn rates, Average Revenue Per User (ARPU), and free trial to paid user conversion ratio;
Direct expenses are calculated based on the number of active users, number of new users, or amount per annum basis.
Staff cost inputs, including staff numbers, average salary per full-time position, average employer’s social security percentage of wages, average annual bonus, and bonus payment months.
Other income and cost inputs, including marketing and operating costs.
Sales and corporate tax inputs, including rate and payment periods.
Dividend inputs, including amount (percentage of retained earnings) and frequency.
Fixed assets, including additional amounts and valuable life.
Borrowings, including additional amounts, interest rate, and maturity date.
Share capital additions;
Discount rate inputs (for valuation calculation).

MODEL STRUCTURE

The model comprises nine tabs split into input (‘i_’), calculation (‘c_’), output (‘o_’), and system tabs. The tabs to be populated by the user are the input tabs (‘i_Setup,’ ‘i_Actuals,’ and ‘i_Assumptions’). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs presented in ‘o_Fin Stats,’ ‘o_Dashboard,’ and ‘o_DCF.’

KEY FEATURES

Other key features of this model include the following:

The model contains a flexible timeline for a mix of actual and forecast periods across five years. This will enable projections to be easily rolled forward as forecast periods become actual periods;
Timeline is split every month and summarised on an annual basis;
The model is not password protected and can be modified as required following download;
The model is reviewed using specialized model audit software to help reduce the risk of formula inconsistencies.
The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):

iGaming product- 15 types.
Other income categories – 5 categories.
Direct expenses – 5 categories.
Staff costs – 10 categories.
Marketing costs – 5 categories.
Other expenses – 15 categories.
Fixed assets – 5 categories.
Borrowings – 3 facilities.

Apart from projecting revenue and costs, the model includes the possibility of modeling fixed assets, borrowings (amortizing), dividends, and corporate tax;
Business name, currency, and starting projection period are fully customizable.
Revenue, cost, and fixed asset descriptions are fully customizable.
The model included an integrated discounted cash flow valuation using the projected cash flow outputs.
The model includes instructions, line-item explanations, checks, and input validations to help ensure input fields are populated accurately.
The model includes a checks dashboard that summarizes all the checks in the various tabs, making it easier to identify errors.

SUPPORT / MODIFICATIONS

We want to ensure our customers are satisfied and find the models useful for their financial projection needs. Our models are developed with the user in mind. They include instructions, line-item explanations, checks, and input validations to ensure they are user-friendly and easy to use without requiring extensive knowledge of Microsoft Excel, finance, user-friendly and easy to use without requiring extensive knowledge of Microsoft Excel, finance or accounting. If v. We are also pleased to support any be-spoke modifications you may require to the models to suit your business needs better. To get in touch, please send us a message through the website or contact us at [email protected]

We are also always keen to receive feedback, so please let us know what you think of our models by sending us a message or submitting a review.

ABOUT PROJECT

We are financial modeling professionals with experience working in Big 4 business modeling teams and strong experience supporting businesses with their financial modeling and decision support needs. We aim to provide robust and easy-to-use tools that follow good practice financial modeling guidelines and assist individuals and companies with their financial projection and analysis requirements.

You must log in to submit a review.