Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q3 2023 Earnings Presentation
28 slides from Gentoo Media's earnings presentation, Nov 8, 2023
Slide 1: Q3-23 Interim Report
Q3-23 Interim Report | Gaming Innovation Group Inc 8 Nov 2023
Slide 2: Q3 Introduction
Gaming Innovation Group - continues the journey towards Q3 becoming world leaders in the iGaming industry ⇢ Transforming the business from a local focused champion to a regional champion to a global leader Introduction ⇢ Making good progress to split company into two separate businesses ⇢ In 2023 Gi
Slide 3: All time high quarterly revenues
All time high quarterly revenues Revenues1 (MEUR) EBITDA2 adj. (MEUR) EBIT2 (MEUR) Revenues EBITDA adj. EBIT +39% Y/Y +61% Y/Y +173% Y/Y 42.8% margin 21.2% margin 1 Revenues are adjusted for revenues from a platform client where GiG recognizes the full operations in its profit and loss statement, whi
Slide 4: Q3 Operational Highlights
⇢ GiG delivers another successive all-time-high Q3 revenues and EBITDA ⇢ EBITDA margin (adj.) increased to 43% - an all-time high and strong progress towards financial target Operational ⇢ goal of 50% GiG Media with all-time-high in both revenues and Highlights EBITDA ⇢ AskGamblers continued its posi
Slide 5: Q3 Financial Highlights
Q3 ⇢ All-time high revenues of €31.8m an increase of 39% YoY, whereof 23% organic Financial ⇢ Reported EBITDA of €23.8 million, up 177% from €8.5m in Q3-2022 ⇢ Excluding reversal of earn-out, adjusted EBITDA was Highlights €13.6 million in Q3-2023, up 61% YoY ⇢ Record revenue despite unfavourable sp
Slide 6: Media Business update
Business update MEDIA ⇢ | Q3 2023 - Interim Report 6
Slide 7: Media Services
Media Services Financial Highlights Q3-2023 MEDIA SERVICES Revenue & EBITDA (MEUR) Revenue ● Media Services reached another all-time quarterly EBITDA adj. high in revenues and EBITDA, continuing the successive growth seen over the past three years ● Q3-2023 revenues ended at €22.5m (15.1), up 49% Yo
Slide 8: Media Services: FTDs
Media Services MEDIA SERVICES - FTDs (1000) Publishing Player Generation Split between publishing and paid Paid ● First Time Depositors (FTD) ended at 114,000 116 111 114 ● 32% increase YoY 110 ● ~95% of FTDs on full revenue share or hybrid 87 deals, securing future recurring revenues ● Good underly
Slide 9: Media Services: Revenue split
MEDIA SERVICES Media Services Revenue split Q3-23 Revenue split ● 63% of revenue came from revenue share agreements, up from 61% ● Revenues from the Americas increased 33% YoY, representing 18% of GiG Media revenues in Q3-23 ● LATAM remains a strong region of growth ● Continued growth in legacy mark
Slide 10: Strategic Focus - Diversification
MEDIA SERVICES Customers with quarterly revenue >10k Strategic Focus - Diversification ● GiG Media considers business diversification a crucial strategic element to secure sustainable long-term revenue growth while reducing business risk ● During the quarter an increasing number of websites, clients,
Slide 11: AskGamblers Status
AskGamblers Status ● Post merger integration plan on track and performing well ● Positive results after taking over operations: ○ Monthly revenue and player generation increased 45% compared to February ○ Monthly earnings (EBITDA) increased by 65% compared to February ● Executing technology migratio
Slide 12: Acquisition of KaFe Rocks
Acquisition of KaFe Rocks ⇢ | Q3 2023 - Interim Report 12
Slide 13: KaFe Rocks: Strengthening our position
KaFe Rocks Strengthening our position ● The company: ○ Global portfolio diversified across 15+ markets, featuring US-facing flagship brands Time2play.com and USCasinos.com ○ Above 70% of recurring revenue (revenue share) ● Strategic importance: ○ Secures pole position in casino affiliation ○ Advances
Slide 14: KaFe Rocks: Strengthening our position
KaFe Rocks Strengthening our position ● Acquisition Price: MEUR 37.5 ○ MEUR 15 upfront, ○ MEUR 20 over 24 months, ○ MEUR 2.5 in shares pending operational targets ● 2024 EV/EBITDA multiple at 3.6x ● Projected Outcomes: ○ Anticipated revenue at MEUR 23 and EBITDA MEUR 10.5 for 2024 ○ Revenue boost fo
Slide 15: Platform & Sportsbook Business update
Business update PLATFORM & SPORTSBOOK ⇢ | Q3 2023 - Interim Report 15
Slide 16: New management
New management ● New management for Platform & Sportsbook to prepare for the split ● Richard Carter started as CEO of Platform & Sportsbook in September ● Further strengthened in November with the appointment of former SBTech and DraftKings executive Andrew Cochrane as new Chief Business Officer ● B
Slide 17: Platform & Sportsbook
PLATFORM & SPORTSBOOK Platform & Sportsbook Revenue & EBITDA (MEUR) Revenue EBITDA adj.* Q3-2023 ● Revenues for Platform & Sportsbook at €9.3m (7.8), a 20% increase, all organic ● Adjusted EBITDA* of €3.2m (1.7) up 90% YoY, with EBITDA margin increasing to 35% (22%) ● Continued good commercial devel
Slide 18: Clients Live Platform & Sportsbook
38 Clients Live Platform & Sportsbook Integration pipeline 63 Brands ● Delivery pipeline with another 14 brands in the integration pipeline continuing to build future revenue and margin expansion ● The geographical diversification covers a total of 38 markets including the current pipeline 34% of cli
Slide 19: Platform & Sportsbook SaaS and Managed Services
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 58% i
Slide 20: Summary Q3 Presentation
Summary Q3 Presentation ⇢ | Q3 2023 - Interim Report 20
Slide 21: Summary
Summary “ ⇢ GiG delivers all-time-high revenues and EBITDA for the quarter ⇢ EBITDA margin (adj) of 43%, progressing well towards long-term financial target of a +50% margin We continue the ⇢ Strategy of diverse geographical footprint supporting the growth journey towards across both the Media and Pl
Slide 22: Thank you
Thank you Q&A | Q3 2023 - Interim Report 22
Slide 23: Appendix
Appendix | Q3 2023 - Interim Report 23
Slide 24: Largest shareholders: September 2023
Largest shareholders: 30 September 2023 GAMING INNOVATION GROUP INC. 1 13 487 500 10.46 % SkyCity Entertainment Group Limited 2 7 115 491 5.52 % Myrlid AS 3 6 446 998 5.00 % Optimus Invest Limited 4 6 005 044 4.66 % Nordea Livsförsäkring Sverige AB 5 5 304 733 4.11 % MJ Investments sp 6 4 832 342 3.
Slide 25: Income Statement
Income Statement EUR 1000 (Unaudited) Q3 2023 Q3 2022 9M 2023 9M 2022 2022 Revenues* 31 818 22 872 91 300 64 052 90 066 Cost of sales* 292 232 853 489 858 Gross profit 31 526 22 640 90 447 63 563 89 208 Marketing expenses* 6 853 4 629 18 689 12 740 18 784 Other operating expenses 11 055 9 539 33 172
Slide 26: Balance Sheet
Balance Sheet EUR 1000 (unaudited) 30 Sep 2023 30 Sep 2022 31 Dec 2022 Assets Goodwill 88 035 75 330 75 340 Intangibles assets 84 299 61 341 61 020 Deposits and other non-current assets 9 975 10 074 10 190 Total non-current assets 182 309 146 745 146 550 Trade and other receivables 32 552 21 905 23
Slide 27: Cash Flow
Cash Flow In EUR 1000 Q3 2023 Q3 2022 9M 2023 9M 2022 2022 Cash flow from operating activities 8 346 9 987 30 583 23 339 31 839 Cash flow from investing activities -4 169 -4 105 -37 316 -42 867 -48 091 Cash flow from financing activities -3 705 -3 153 -430 25 227 23 004 Translation (loss)/gain -128 -189
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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