Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group (GiG) — Q4 2017 Earnings Presentation
28 slides from Gentoo Media's earnings presentation, Feb 13, 2018
Slide 1: Q4 2017 Interim Report
Q4 2017 Interim Report 13th February 2018, CEO Robin Reed
Slide 2: Todays Presenters
Todays Presenters Robin Reed Founder & CEO “Opening up iGaming, Tore to make it fair & fun for all” Formo Group CFO
Slide 3: GiG overview
GiG overview Technology company providing products and services throughout the entire value chain in the iGaming industry Founded in 2012 HQ in Malta, with offices in Denmark, Norway, Spain and Gibraltar 650 GIGsters looking to disrupt the iGaming industry
Slide 4: Highlights Q4 2017
Highlights Q4 2017 • Major breakthrough for GiG Platform Services, entering regulated US market through partnership with Hard Rock International • Successful launch of Highroller.com • Developed management structure to enable continued, rapid growth and efficiency • New headquarters and campus in Ma
Slide 5: Financial highlights Q4 and FY 2017
Financial highlights Q4 and FY 2017 €120.4 m €12.5 M €39.9 M €7.9 M + 125% Y/Y + 115% Y/Y + 29% Q/Q + 159% Q/Q 2017 revenues 2017 EBITDA Q4 2017 revenues Q4 2017 EBITDA
Slide 6: Strongest financial performance recorded
Strongest financial performance recorded Scaling and becoming more efficient 39.9 86% 30.8 Revenues in EUR million 26.6 23.1 21.5 236% 14.5 9.7 7.9 6.4 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Slide 7: Poised for the next step
Poised for the next step Developed vision and management structure “Opening up iGaming, to make it fair and fun for all” CEO C-Level Management Team Robin Reed CFO COO CTO CMO CCO CDO Finance Operations Technology Marketing Commercial Digital Justin Psaila Mikael Angman Edgars Peics Tomas Backman Be
Slide 8: The GIG eco-system
The GIG eco-system Disrupting the value chain in iGaming GIG Sports GIG Media GIG Core GIG Gaming & Games B2B B2B B2B B2C Digital Platform Sports & Games Operators marketing services services services Revenue share & fixed fees Revenue share & fixed fees Revenue share & fixed fees Bets - Wins Findin
Slide 9: Business update
BUSINESS UPDATE GiG
Slide 10: GIG Media
GIG Media Digital marketing and lead • 35,200 FTD’s referred in Q4 17, generation up from 29,050 in Q3 17 GiG Media EUR million 8.5 • ~ 10,000 FTD’s referred to operators in GIG’s eco-system + 34% Revenue growth versus Q3 17 6.3 • 74% of revenues from revenue GiG Platform Services 5.2 share agreemen
Slide 11: GIG Core
GIG Core B2B offering for platform vertical GIG Media • iGamingCloud renamed GIG Core EUR million 9.6 • EUR 2 million one-off settlement + 87% claimed in Q4 GIG Platform Revenue growth versus Q3 17 6.6 • Major breakthrough, partnership Services with Hard Rock International 5.1 - Entering regulated U
Slide 12: GIG Sports & Games
GIG Sports & Games Sports and games services GIG Media • Developing games services for sports betting and casino EUR million - Odds for sportsbook GIG 0.7 Platform - Games for casino operators 0.3 Services 0.2 • Games services are licensed, and -0.1 -0.2 -0.1 certified odds or casino games -0.2 -0.2
Slide 13: GIG Sports (previously labelled Betting Cloud)
GIG Sports (previously labelled Betting Cloud) B2B offering for the sportsbetting vertical GIG Media Scaled up sports development ahead of 2018 FIFA World Cup GIG Platform Services 3 new B2B products for sports to be launched in H1 2018 GIG Sports & Games GIG Sports Connect GIG Trader GIG Goal GIG G
Slide 14: GIG Casino Services
GIG Casino Services B2B offering Casino vertical GIG Media GIG GIG Casino Connect & GIG Games GIG Magic sold to 3 Platform to be launched in Q3. clients Services GIG Sports GIG Casino Connect GIG Games GIG Magic & Games All games in one feed Proprietary Games Mobile first Casino GIG Gaming Front End
Slide 15: GIG Gaming
GIG Gaming B2C operator offering Casino, Sportsbetting & Poker through 7 brands and websites GIG Media EUR million + 42% Revenue growth versus Q4 16 • GiG Gaming marketing expense of EUR 13.5 million GIG Platform - Front-loaded marketing of EUR 8.9m Services 25.4 - Revenue share expense of EUR 4.6m
Slide 16: Highroller.com
Highroller.com Successful Casino launch • Seeking to disrupt the casino vertical by offering a personalized, interactive and gamified experience • Returned the best acquisition launch KPIs of a gaming product by GIG • Tracking ahead of budget with January 2018 revenues of EUR 800,000 - Success to be
Slide 17: Regulatory update
Regulatory update Payment service directive 2 Norway Has come into effect and in order to stay Sweden Opposition compliant, GIG has removed all fees incurred Betting license to be parties intend to customers on transactions introduce a applicable in Sweden (as of January, 13) restrictive bill from J
Slide 18: Developing organization
Developing organization Attracting and retaining senior staff for increased structure and efficiency MALTA Headquarter OSLO EUR million KRISTIANSAND 45.0 COPENHAGEN 40.0 35.0 30.0 25.0 20.0 26% 26% 25% 25% 24% 25% 22% 21% 15.0 10.0 5.0 Marbella 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 MALTA Headquarter 2016 2017
Slide 19: Financial update
FINANCIAL UPDATE GiG
Slide 20: Strong top-line and earnings growth
Strong top-line and earnings growth 12 months rolling revenues 120 12 months rolling EBITDA 12.5 EUR million EUR million 102 86 8.4 69 6.5 54 5.8 5.5 38 29 23 18 0.2 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 -1.9 -1.8 -0.9 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017
Slide 21: Healthy financials despite significant investments
Healthy financials despite significant investments EUR million 2 26 1 12 (16) (1) Cash and cash Cash flow from Cash flow from Cash flow from Translation gain and Cash and cash equivalents at 30 operating activities investment activities financing activities fair value movements equivalents at 31 Sep
Slide 22: Outlook
OUTLOOK • Seek to be a frontrunner in improving the user experience, regulatory standing and social impact of the industry • New sportsbook and games offering to have strong impact on both B2B and B2C • Aiming for New Jersey license in H1 2018 • Exploring several acquisition opportunities • Sustain
Slide 23: QIA
QIA GiG
Slide 24: Appendix
APPENDIX GiG
Slide 25: Largest Shareholders
Largest Shareholders Shareholder # shares % Bryggen Holding AS 118 178 394 13.2 % Optimizer Invest Ltd. 103 373 297 11.5 % Swedbank Robur Ny Teknik 80 275 000 9.0 % Super Innovative Limited (Robin Reed) 64 464 272 7.2 % Hans Michael Hansen 50 104 461 5.6 % Frode Fagerli 38 752 671 4.3 % Avanza Bank
Slide 26: Income statement
Income statement Condensed Statements of Operations in EUR 1 000 (Unaudited) Q4 2017 Q4 2016 2017 2016 Revenues 39 929 21 495 120 423 53 605 Cost of sales 6 516 4 052 20 521 9 285 Gross profit 33 413 17 443 99 902 44 320 Gross profit margin 84 % 81 % 83 % 83 % Marketing expenses 13 102 7 007 47 093
Slide 27: Cash flow
Cash flow In EUR 1 000 Q4 2017 Q4 2016 2017 2016 Cash flow from operating activities 1 994 -476 13 413 2 221 Cash flow from investment activities -15 820 -1 065 -66 714 -5 061 Cash flow from financing activities 1 016 -314 60 635 7 052 Translation loss -846 -218 -2 571 -200 Fair value movements -12
Slide 28: Balance sheet
Balance sheet Condensed Balance Sheet in EUR 1 000 (Unaudited) 2017 2016 Assets Goodwill 69 444 63 955 Intangibles and other non-current assets 99 176 43 638 Total non-current assets 168 620 107 593 Other current assets 24 963 12 680 Cash and cash equivalents 12 079 6 035 Total current assets 37 042
Gaming Innovation Group (GiG) — Q4 2017 Earnings Presentation on 6ix