Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q2 2023 Earnings Presentation
24 slides from Gentoo Media's earnings presentation, Aug 16, 2023
Slide 1: Q2-23 Interim Report
Q2-23 Interim Report | Gaming Innovation Group Inc 16 Aug 2023
Slide 2: Q2 Highlights
Q2 ⇢ GiG delivers another successive all-time-high revenues and EBITDA Highlights ⇢ EBITDA margin increased to 45% - an all-time high and strong progress towards financial target goal of 50% ⇢ Platform & Sportsbook continued positive delivery with seven additional new brands live during summer ⇢ AskG
Slide 3: All time high quarterly revenues
All time high quarterly revenues Revenues* (MEUR) EBITDA adj. (MEUR) EBIT (MEUR) Revenues EBITDA adj. EBIT +40% Y/Y +68% Y/Y +173% Y/Y 45.0% margin 21.1% margin *Revenues are adjusted for revenues from a platform client where GiG recognizes the full operations in its profit and loss statement, which
Slide 4: Operational contribution
Operational contribution LTM - EURm ● Strong growth in contribution (cash flow) from operations ● Defined as EBITDA less capex, leases and interest/fees ● Q2-23 working capital affected by: - change of banking solutions, whereby the payment of around €3.5 million - payment structure for Enterprise Sol
Slide 5: Media Business update
Business update MEDIA ⇢ | Q2 2023 - Interim Report 5
Slide 6: Media Services
Media Services Q2-2023 MEDIA SERVICES Revenue & EBITDA (MEUR) Revenue ● Media Services reached another all-time quarterly EBITDA adj. high in revenues, continuing the successive quarterly growth seen over the past three years ● Q2-2023 revenues ended at €21.7m (14.8), up 47% YoY (20% organic) ● EBIT
Slide 7: Media Services - FTDs
Media Services MEDIA SERVICES - FTDs (1000) Publishing FTDs Split between publishing and paid Paid ● First Time Depositors (FTD) ended at 109K 116 ● 38% increase YoY 111 109 ● ~95% of FTDs on full revenue share or hybrid 87 deals, securing future recurring revenues 80 ● Good underlying growth in Pub
Slide 8: Media Services - Revenue split
MEDIA SERVICES Media Services Revenue split Q4-22 Revenue split ● 64% of revenue came from revenue share agreements up from 58% ● Revenues from the Americas increased 24% YoY, representing 22% of GiG Media revenues in Q2-23 ● LATAM remains a strong region of growth with new markets providing further
Slide 9: AskGamblers Acquisition
AskGamblers Acquisition ● Post merger integration plan is performing well ● Strong performance after 6 months of operational take over with July run rates of ○ Revenue up 45% ○ FTD’s up over 40% ○ And EBITDA doubled ● Executing technology migrations ○ First and second website asset migrations comple
Slide 10: Platform & Sportsbook Business update
Business update PLATFORM & SPORTSBOOK ⇢ | Q2 2023 - Interim Report 10
Slide 11: Platform & Sportsbook
PLATFORM & SPORTSBOOK Platform & Sportsbook Revenue & EBITDA (MEUR) Revenue EBITDA adj. Q2-2023 ● Revenues for Platform & Sportsbook at €9.3m (7.3), a 27% increase, all organic ● Adjusted EBITDA of €3.7m (1.3) up 194% YoY, with EBITDA margin increasing to 40% (17%) ● Variations and timing nature of
Slide 12: Clients Live Platform & Sportsbook
41 Clients Live Platform & Sportsbook Integration pipeline ● Two brands went live in Q2-23 and five additional so far in Q3-23 65 Brands ● Delivery pipeline with another 14 brands in the integration pipeline continuing to build future revenue and margin expansion ● The geographical diversification cov
Slide 13: Platform & Sportsbook SaaS revenues
PLATFORM & SPORTSBOOK SaaS and related revenues (MEUR) Platform & Sportsbook SaaS and Managed Services ● Underlying SaaS and related revenues experience continued strong growth ● Operators GGR are geographically diversified with share from legacy markets decreasing to Operators GGR distribution 57% i
Slide 14: Events after the quarter and summary
Events after the quarter and summary ⇢ | Q2 2023 - Interim Report 14
Slide 15: Update after the quarter
Update after the quarter ● 5 additional brands have gone live so far in Q3, including new market entries in Maryland (US), Serbia and further expansion into Latin America ● 4 additional platform contracts signed ● Media strong trend of FTD acquisition continued in July despite seasonality, up 26% Yo
Slide 16: Strategic Review
Strategic Review ● Strategic review for the purpose of separating the group into two independent publicly listed companies progressing according to plan ● “Operational“split will be completed by year end with Final execution is expected in the first half of 2024, and will be subject to all necessary
Slide 17: Summary
Summary “ ⇢ GiG delivers all-time-high revenues and EBITDA for the quarter ⇢ EBITDA margin of 45%, progressing well towards long-term financial Making clear progress target of a +50% margin ⇢ Significant EBIT and net profit growth: 173% and 399% year-over-year towards its long term ⇢ Strategy of divers
Slide 18: Thank you - Q&A
Thank you Q&A | Q2 2023 - Interim Report 18
Slide 19: Appendix
Appendix | Q2 2023 - Interim Report 19
Slide 20: Largest shareholders: June 2023
Largest shareholders: 30 June 2023 GAMING INNOVATION GROUP INC. 1 13 487 500 10.46 % SkyCity Entertainment Group Limited 2 7 115 491 5.52 % Myrlid AS 3 6 296 998 4.88 % Optimus Invest Limited 4 6 005 164 4.66 % Nordea Livsförsäkring Sverige AB 5 4 832 342 3.75 % Betplay Capital sp 6 4 308 000 3.34 %
Slide 21: Income Statement
Income Statement EUR 1000 (Unaudited) Q2 2023 Q2 2022 6M 2023 6M 2022 2022 Revenues* 31 062 22 125 59 482 41 180 90 066 Cost of sales 254 227 557 256 858 Gross profit 30 808 21 898 58 925 40 924 89 208 Marketing expenses 6 152 4 332 11 841 8 111 18 784 Other operating expenses 10 684 9 261 21 419 17
Slide 22: Balance Sheet
Balance Sheet EUR 1000 (unaudited) 30 Jun 2023 30 Jun 2022 31 Dec 2022 Assets Goodwill 91 811 78 654 75 340 Intangibles assets 85 855 61 128 61 020 Deposits and other non-current assets 9 383 12 744 10 190 Total non-current assets 187 049 152 526 146 550 Trade and other receivables 28 116 21 775 23
Slide 23: Cash Flow
Cash Flow In EUR 1000 Q2 2023 Q2 2022 6M 2023 6M 2022 2022 Cash flow from operating activities 9 082 9 538 22 325 13 352 31 839 Cash flow from investing activities -8 532 -35 847 -33 147 -38 762 -48 091 Cash flow from financing activities -3 635 21 265 3 271 28 380 23 004 Translation (loss)/gain 20 106
Slide 24: Legal Disclaimer
Legal Disclaimer Gaming Innovation Group Inc. gives forecasts. Certain statements in this report presentation are forward-looking and the actual outcome may be materially different. In addition to the factors discussed, other factors could have an impact on actual outcomes. Such factors include deve
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