Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Q4 2018 Earnings Presentation
30 slides from Gentoo Media's earnings presentation, Feb 11, 2019
Slide 1: February 2019
11 February 2019
Slide 2: Today's presenter: Robin Reed, CEO
Today’s presenter “Opening up iGaming, to make it Robin Reed fair and fun for all” CEO
Slide 3: Outline
Outline • Overview • Highlights • Strategic & Business Update • Summary & Outlook • Q/A 3
Slide 4: GiG overview
GiG overview iGaming solutions based on innovative technology ~710 No of Employees Offices in Malta, Denmark, Gibraltar, Norway, Spain, USA 2012 2015 Present GiG founded Listed on the Moving to Nasdaq Stockholm Licences in Malta, UK, Oslo Stock New Jersey, Germany exchange S-H, Sweden, Spain pending
Slide 5: Underlying market growth & offline to online growth
Underlying market growth & offline to online growth GlobalGambling Market Gross Win (USDbn) CAGR Total Market CAGR Total Market 2018e - 2023e 2.5% Source: H2GC 2003 - 2017 10.4% CAGR Interactive 2018e – 2023e 6.6% CAGR Interactive 500 2003 – 2017 13.5% 70 67 63 59 55 51 400 31 35 42 47 38 29 26 25 1
Slide 6: The Digital Gambling Lifecycle
The Digital Gambling Lifecycle Our goal is to is to pursue digital perfection and leadership, supporting our customers growing their business through a partnership model 6
Slide 7: GiG: iGaming solutions based on innovative technology
GiG: iGaming solutions based on innovative technology Products & services throughout the entire iGaming value chain The iGaming value chain Platform Services Content & Ancillary Marketing Operators Services Sports Betting, Media In-house Gaming Technical Platform Games & Ancillary Services Operators
Slide 8: The Global Partner for strong brands in iGaming
“The Global Partner for strong brands in iGaming”
Slide 9: Highlights
Highlights • Strategy evolving: The global partner for strong brands in iGaming • Products and services now covering the entire value chain in iGaming • Full year revenue and EBITDA guidance met • All-Time-High revenues in B2C and Media • Entering the US market for sports betting with the launch of
Slide 10: Continued stable and positive development
Continued stable and positive development 12 months rolling revenues 151 151 12 months rolling EBITDA EUR million 145 EUR million 18.9 18.9 135 17.2 16.9 120 16.1 102 12.5 86 69 8.4 54 6.5 5.8 5.5 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q
Slide 11: Q4 Financial Highlights
Q4 Financial Highlights €39.9m €7.8m €11.6m €15.4m €5.0m Revenues Cost of sales Marketing Other opex EBITDA 0% Y/Y +20% Y/Y -12% Y/Y +24% Y/Y -36% Y/Y Adj EBITDA €6.9m 11
Slide 12: Strategic Update
Strategic Update GiG
Slide 13: B2B update
B2B update • The Global Partner for strong brands in iGaming • Certified platform for Casino and Sports in New Jersey and supporting Swedish licencees • Online and Retail sportsbook platform launched • GiG Comply sold to 2nd operator • Proprietary games sold to first external customers • Termination
Slide 14: B2C update
B2C update • Why B2C? Proof of pudding, dogfooding, scale • Strategic review in H1 yielding strong results • Fewer but larger brands • Shift from TV to performance marketing • Grow emerging markets to compete in regulated markets • Immense focus on data driven User Experience • Develop a major casin
Slide 15: Business Update
Business Update GiG
Slide 16: Operations
Operations Headcount – end of quarter Headcount distribution 742 Corporate 734 functions Gaming 20% Operators 706 24% 700 GiG Games 3% 635 Sports Betting Services Media 11% Services 14% Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Platform Services 28% 16
Slide 17: Media services (B2B)
Media services (B2B) EUR million 8.5 8.7 8.7 8.4 8.2 • ATH revenues increased by 3% compared to Q4 2017, all organic growth driven by Publishing (85% of Media revenues) 5.2 • The paid model, representing 15% of Media 4.7 4.9 revenues, was impacted by lower revenues 4.4 4.3 from key customers • 29,74
Slide 18: Platform services (B2B)
Platform services (B2B) EUR million EUR 2m one-off 9.6 settlement fee • 4 new brands live, 2 ceased operations in Q4, a total of 39 brands operating on the platform 7.2 6.8 6.8 6.6 6.3 • Total database transactions increased by 27% to 5.1bn (4.0) compared to Q4 2017 • Revenues decreased by 25% compa
Slide 19: Sports betting services (B2B)
Sports betting services (B2B) EUR million 0.6 0.5 0.2 0.2 • Full omni-channel product launched in New Jersey ahead of Superbowl -0.1 • Live with HardRock, 11.Lv, and Rizk.com • Signed with GLHF.Com, MetalCasino and Guts • Currently competing in two major tenders -1.4 • Current burn-rate of €0.7–0.8m
Slide 20: Gaming operators (B2C)
Gaming operators (B2C) EUR million 25.8 • ATH revenues increased by 2% from Q4 17. 25.4 25.4 24.2 24.4 The Rizk brand represent ~70% of the B2C revenues • Marketing costs represented 42% of the B2C revenue, compared to 54% in Q4 17 • Active real money players decreased to 176,044 (182,565), gross de
Slide 21: Gaming Operators KPIs
Gaming Operators KPIs Rizk.com 17.9 14.7 12.1 10.9 10.7 Rizk.com 2018 (EUR) 200 3.4 1.5 2.1 180 1.1 0.9 Net Gaming Revenue per customer 160 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 140 Other brands combined 120 14.5 14.8 100 12.1 9.7 80 7.9 Loyalty cost per customer 60 40 20 -0.9 -0.8 -1.9 -3.6 -2.7 0 Q4 17 Q1
Slide 22: Summary & outlook
Summary & outlook • GiG closed the circle of being a full service provider with the launch of proprietary games, now covering all verticals in iGaming • Focus evolved from developing new products to selling, marketing and improving products and technology on current investment level short and mid te
Slide 23: Applied for listing at NASDAQ Stockholm (main list)
Applied for listing at NASDAQ Stockholm (main list) - planned for March 2019
Slide 24: Q/A
Q/A GiG
Slide 25: Appendix
Appendix GiG
Slide 26: Largest shareholders
Largest shareholders Shareholder # shares % Bryggen Holding AS 11 817 839 13.1 % Swedbank Robur Ny Teknik 8 300 000 9.2 % Super Innovative Limited 6 446 427 7.2 % Henrik Persson Ekdahl 4 522 582 5.0 % Andre Lavold 4 522 582 5.0 % Hans Michael Hansen 4 360 445 4.8 % Frode Fagerli 3 603 266 4.0 % Avan
Slide 27: Income statement
Income statement Condensed Statements of Operations in EUR 1 000 (Unaudited) Q4 2018 Q4 2017 2018 2017 Revenues 39 864 39 929 151 372 120 423 Cost of sales 7 795 6 516 27 358 20 521 Gross profit 32 069 33 413 124 014 99 902 Gross profit margin 80% 84% 82% 83% Marketing expenses 11 593 13 102 47 247
Slide 28: Cash flow
Cash flow In EUR 1 000 Q4 2018 Q4 2017 2018 2017 Cash flow from operating activities 2 656 1 993 12 896 13 046 Cash flow from investment activities -3 252 -15 820 -12 896 -67 616 Cash flow from financing activities 1 564 1 016 2 003 61 904 Translation loss -157 -846 133 -2 571 Fair value movements -
Slide 29: Balance sheet
Balance sheet Condensed Balance Sheet in EUR 1 000 (Unaudited) 31 December 2018 31 December 2017 Assets Goodwill 69 253 69 444 Intangibles assets 69 570 91 997 Deposits and other non-current assets 7 963 7 179 Total non-current assets 146 786 168 620 Prepaid and other current assets 5 194 Trade and
Slide 30: Strong cash position
Strong cash position 2.7 1.6 0.2 14.7 13.9 -3.3 Cash and cash Cash flow from Cash flow from Cash flow from Translation gain and Cash and cash equivalents at operating activities investment activities financing activities fair value movements equivalents at 31 Sep 2018 31 Dec 2018 30