The financial planning & analysis function within Malta-based Igaming companies : a study

Abstract

Purpose: This study analyses the growing importance of the financial planning & analysis (FP&A) function in iGaming companies operating in Malta by firstly assessing the role of FP&A and whether these companies perform such a function. Secondly, the author sheds some light on the difference between traditional accounting and the FP&A function and thirdly how the latter can bring the finance department, in such companies, closer to the decision-making process. Design: A qualitative approach was adopted, and semi-structured interviews were carried out to gather data. The participants consisted of finance personnel and CFOs working in local iGaming companies. Findings: This study shows that while not all companies have a formal FP&A in place, all companies perform such function in one way or another. All agree that it looks at past and current trends to aid companies to gain a future reality and better decision-making. Due to the volatile environment of the iGaming industry, FP&A provides top management with the essential support needed to remain agile. FP&A picks up where traditional accounting leaves off; therefore, it is considered as an extension to the traditional accounting function and as a bridge between finance and leadership. Moreover, FP&A is expected to gain more importance since the industry is growing and improving and has a significant impact on the Maltese economy. Conclusion: This study shows how important the FP&A function is in the iGaming industry, especially in today’s circumstances, with all the changes in the industry. Moreover, this study shows that having an FP&A function in place can help growth opportunities and staying ahead of competition whilst understanding and addressing uncertainty to be able to influence top management’s decisions. Value: This study adds to the limited current literature review about FP&A in Maltese-based iGaming companies as well as provides recommendations hoping to help iGaming companies to have improved decision-making processes and an efficient finance department.