Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q3 2021 Earnings Presentation
28 slides from Gentoo Media's earnings presentation, Nov 9, 2021
Slide 1: Gaming Innovation Group Inc. Interim Report
Gaming Innovation Group Inc. Interim Report @ 09 Nov 2021 GiG
Slide 2: Today's Presenters
Q3 2021 Interim Report Today’s Presenters Richard Brown Tore Formo CEO Group CFO 2
Slide 3: GiG in brief
GiG in brief Mission “To drive sustainable growth and profitability of our partners through product innovation, scalable technology and quality of service.” Dual-listed on Oslo Børs and at Nasdaq Stockholm 460 Over 25 primary countries Employees targeted by Media assets €180m (approx.) Market Cap O
Slide 4: iGaming solutions are based on innovative technology
iGaming solutions are based on innovative technology GiG focusing strategy on ambition to become global Tier 1 B2B provider. GiG’s strategy is centered on three customer focused business areas, which is key to be a relevant supplier, supported by its group ambition for top performance and operationa
Slide 5: Head figures development
Q3 2021 Interim Report Head figures development Revenues* MEUR EBITDA MEUR EBIT MEUR Revenues* EBITDA EBIT 20% Y/Y 67% Y/Y 212% Y/Y *Revenues are adjusted for revenues from a platform client where GiG recognizes the full operations in its profit and loss statement, which are partly offset
Slide 6: Key takeaways Q3 2021
Q3 2021 Interim Report Key takeaways Q3 2021 ● Continued positive development with significant YoY growth, both revenues and EBITDA ● Media delivered all-time highs on revenue, FTDs in line with previous quarter despite seasonality effects ● Signed three new agreements for platform provision in th
Slide 7: Strategic Update - Q3
Q3 2021 Interim Report Strategic Update - Q3 7
Slide 8: Large volume of new contracts signed last 12 months
Q3 2020 Interim Report Large volume of new contracts signed last 12 months Admirāļu Mill of Magic Grupo Slots TipWin Slotbox PlayStar German facing PlayStar German facing SuperSeven Klubs European operator European operator European operator European operator Casumo brand Argentina Germany Ireland
Slide 9: Client and Market Expansion Driving Future Growth
Q3 Q3 2020 2021 Interim Report SaaS revenue (ex. GiG/Betsson brands) Client and Market Expansion Brands onboarded in: Driving Future Growth 2017 2018 2019 • SaaS contracts generate long term and sustainable revenue 2020 source 2021 • Ramp period from contract signing to launch, followed by operato
Slide 10: Platform scalability
Q3 Q3 2020 2021 Interim Report Revenue vs OPEX OPEX Revenue excl. white labels Platform scalability • SaaS contracts generate long term and sustainable revenue source • Increasing revenue and number of clients with stable opex • New contracts adding recurring revenue stream Number of SaaS clients
Slide 11: Media
Q3 2021 Interim Report Media Services LTM Revenue (MEUR Media ● Media services reached a third successive all-time high in quarterly revenue ● The positive developments in Media driven by both growth in current core- as well as newer GiG Media markets (e.g. LatAm and Eastern Media Services Europe
Slide 12: Media - securing future revenues
Q3 2021 Interim Report Media - securing future revenues ● High referred customer quality - 95% of FTD’s on have perpetual revenue share components, where GiG will earn revenue over the players’ lifetime ● Growth through optimising and improving existing channels and websites products ● Further opp
Slide 13: Business Update
Q3 2021 Interim Report Business Update 13
Slide 14: Platform Services
Q3 2021 Interim Report Platform Services Revenue & EBITDA MEUR Platform Services Revenue EBITDA ● Revenues* for Platform Services were €5.7m (5.4 in Q3 2021, a 6% increase YoY ● Fourth consecutive quarter with positive EBITDA, ended at €0.6m (-0.1 ● SaaS revenue drives the platform business’ u
Slide 15: Platform Services
Q3 2021 Interim Report Platform Services Aggregated GGR MEUR Platform Services SaaS White labels ● As of Q3, 22 SaaS brands were live on the platform up from 15 in Q3 2020 ● 7 new Client projects completed YTD, 2 in Q3 ● 3 clients dev complete pending expected live in Q4 New Client Project Compl
Slide 16: Media Services
Q3 2021 Interim Report Media Services Revenue & EBITDA MEUR Revenue Media Services EBITDA ● Media Services continued its positive development in Q3 ● All-time-high revenues of €11.2m (8.6, a 30% increase YoY ● Publishing delivered 32% YoY and 7% QoQ revenue growth Media Services - FTDs (1000 ●
Slide 17: Media Services
Q3 2021 Interim Report Media Services Media Services Revenue split Q321 ● Recurring revenue share accounted for 62% of revenues ● Positive impact of product development realised in search rankings ● 4 new market/asset launches in Q3 ● Currently holds 10 licenses in US and qualified to carry out b
Slide 18: Events after the quarter & summary
Q3 2021 Interim Report Events after the quarter & summary 18
Slide 19: Update after the quarter
Q3 2021 Interim Report Update after the quarter ● Signed new long-term agreement with established German operator ● Sales pipeline remains strong and builds momentum ● Three brands development complete and expected to go live before year-end ● Netherlands closure is expected to make minimal impact
Slide 20: GiG's Long-term Financial targets
Q3 2021 Interim Report GiG’s Long-term Financial targets Growth Profitability Leverage To deliver annual double digit To achieve an EBITDA margin Cash generated from the organic revenue growth in excess of 40% by 2025 business will be used to lower leverage ratio while pursuing growth opportunitie
Slide 21: Summary
Q3 2021 Interim Report Summary ● The business in Q3 delivered strong double digit growth in revenues, EBITDA and EBIT ● Media business performed exceptionally well reaching all-time highs both financially and in operational KPI’s while it continued to launch into new markets and build on top of th
Slide 22: Q&A
Q3 2021 Interim Report Q&A 22
Slide 23: Appendix
Q3 2021 Interim Report Appendix 23
Slide 24: Largest shareholders: 31 October 2021
Q3 2021 Interim Report Largest shareholders: 31 October 2021 GAMING INNOVATION GROUP INC. 1 7 603 559 7.9 % Optimus Invest Limited 2 6 332 333 6.6 % Myrlid AS 3 4 896 125 5.1 % True Value Limited 4 4 845 269 5.0 % Nordea Livsförsäkring Sverige AB 5 3 959 874 4.1 % Swedbank Robur Ny Teknik 6 3 344
Slide 25: Income Statement
Q3 2021 Interim Report Income Statement EUR 1 000 Unaudited) B2C included as discontinued operations Q3 2021 Q3 2020 9M 2021 9M 2020 2020 Revenues 16 996 14 202 48 596 38 034 52 164 Cost of sales 93 121 378 291 593 Gross profit 16 903 14 081 48 218 37 743 51 571 Marketing expenses 2 763 1 590 7 7
Slide 26: Balance Sheet
Q3 2021 Interim Report Balance Sheet EUR 1 000 (unaudited) B2C included as discontinued operations 30 Sep 2021 30 Sep 2020 31 Dec 2020 Assets Goodwill 16 324 16 018 16 287 Intangibles assets 32 499 34 526 33 012 Deposits and other non-current assets 13 986 18 121 16 637 Total non-current assets 62
Slide 27: Cash Flow
Q3 2021 Interim Report Cash Flow In EUR 1 000 B2C included as discontinued operations Q3 2021 Q3 2020 9M 2021 9M 2020 2020 Cash flow from operating activities 7 935 225 11 354 17 888 17 700 Cash flow from investing activities 2 054 1 744 6 901 16 042 14 613 Cash flow from financing activities
Slide 28: 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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