Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group (GiG) — Q1 2018 Earnings Presentation
24 slides from Gentoo Media's earnings presentation, May 3, 2018
Slide 1: Q1 2018 interim report
Q1 2018 interim report 3 May 2018, CEO Robin Reed
Slide 2: Today's presenters
Today´s presenters Robin Reed Founder & CEO “Opening up iGaming, Tore to make it fair & fun for all” Formo Group CFO 2
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 700 GIGsters looking to disrupt the iGaming industry 3
Slide 4: 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 5: Operational highlights
Operational highlights • Sports betting licence obtained in Germany, paving way for launch in the second largest sports betting market in Europe • Signed agreement with Hard Rock International for online gaming platform and US launch • GIG entering the largest gambling vertical - sports betting, wit
Slide 6: Financial highlights
Financial highlights €37.3 m €6.9 m €11.9 M €14.3 m €4.3 M revenues Cost of sales marketing Other opex EBITDA + 62% Y/Y + 57% Y/Y + 9% Y/Y + 76% Y/Y (€0.4M) Q1 2017 6
Slide 7: Financial update
FINANCIAL UPDATE GiG
Slide 8: Continued positive development
Continued positive development 12 months rolling revenues 12 months rolling EBITDA 17.2 EUR million 135 EUR million 120 102 12.5 86 69 8.4 54 6.5 5.8 5.5 38 29 23 0.2 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 -1.8 -0.9 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3
Slide 9: Strong cash position
Strong cash position EUR million 2 12 11 (3) Cash and cash equivalents at Cash flow from operating Cash flow from investment Cash and cash equivalents at 31 December 2017 activities activities 31 March 2018
Slide 10: Business update
BUSINESS UPDATE GiG
Slide 11: GIG Media
GIG Media • Revenues up by 155% and EBITDA up by Digital marketing and lead 100% Y/Y generation GiG Media • Q1 18 revenues and EBITDA, impacted 8.5 8.2 by: EUR million - Withdrawal from the Dutch market GiG - Temporary pause in marketing from paid Platform 6.3 media client in Q1 18 Services 5.2 4.4
Slide 12: GIG Core
GIG Core B2B offering for platform vertical GIG Media EUR million 9.6 • Continued underlying growth with net gaming revenue (NGR) from client base One-off settlement fee up 4.5% in Q1 18 over Q4 17 GIG Platform 6.8 6.6 • Revenues up by 145% and EBITDA up Services 5.1 from €0.3m to €1.5m 3.5 • Q1 18
Slide 13: GIG Sports & Games
GIG Sports & Games Sports and Games services GIG Media • Continued investments in product and technology EUR million development GIG 0.7 Platform 0.3 0.2 0.2 Services • Launching new sportsbook with Rizk.com ahead of the 2018 FIFA -0.2 -0.2 -0.1 World Cup GIG • Following Rizk.com launch, GIG Sports
Slide 14: GIG Sports
GIG Sports B2B offering for the sports betting vertical GIG Media GIG Platform Services GIG Sports to be launched ahead of FIFA World Cup in June 2018 GIG Sports & Games GIG Sports Connect GIG Trader GIG Goal GIG Gaming In-house and aggregated Full suit of trading and Mobile first Sports odds & data
Slide 15: GIG Casino Services
GIG Casino Services B2B offering Casino vertical GIG Media GIG Platform Services Currently 3 games under development 6 - 8 games to be launched by the end of 2018 GIG Sports & Games GIG Casino Connect GIG Games GIG Magic GIG Gaming All games in one feed Proprietary Games Mobile first Casino Front En
Slide 16: GIG Gaming
GIG Gaming B2C operator offering Casino, Sports betting & Poker through 7 internal brands GIG Media • First quarter with positive EBITDA with an increase of €2.8m to €0.1m Y/Y - Marketing costs was 46% of GIG Gaming revenue, GIG compared to 60% in Q1 17 Platform EUR million 25.4 25.4 Services - Reve
Slide 17: Regulatory update
Regulatory update Norway Opposition parties expected to introduce Sweden PSD 2 (Payment Services a restrictive bill Re-regulation - licence Directive 2) system from 1/1 2019, GIG has removed all fees incurred by application work has customers on transactions commenced United GDPR (General Data Kingd
Slide 18: Outlook
Outlook • Leverage on strengthened regulatory competence and capacity going forward • Launch of new compelling GIG Sports offering in May 2018, and Casino Games in H2 2018 • Launching Hard Rock’s online gaming platform in the US market during 2018 • Solid foundation driving a dynamic and expanding p
Slide 19: QIA
QIA GiG
Slide 20: Appendix
APPENDIX GiG
Slide 21: 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 78 275 000 8.7% Super Innovative Limited (Robin Reed) 64 464 272 7.2% Hans Michael Hansen 43 604 461 4.9% Frode Fagerli 38 752 671 4.3% Avanza Bank AB nom
Slide 22: Income statement
Income statement Condensed Statements of Operations in EUR 1 000 (Unaudited) Q1 2018 Q1 2017 2017 Revenues 37 339 23 074 120 423 Cost of sales 6 850 4 367 20 521 Gross profit 30 489 18 707 99 902 Gross profit margin 82% 81% 83% Marketing expenses 11 863 10 930 47 093 Other operating expenses 14 293
Slide 23: Cash flow
Cash flow In EUR 1 000 Q1 2018 Q1 2017 2017 Cash flow from operating activities 2 010 6 061 13 046 Cash flow from investment activities (3 490) (1 951) (67 616) Cash flow from financing activities - 41 016 61 904 Translation loss 86 153 (2 571) Fair value movements 26 (2) 1 281 Net change in cash an
Slide 24: Balance sheet
Balance sheet Condensed Balance Sheet in EUR 1 000 (Unaudited) 31 March 2018 31 March 2017 2017 Assets Goodwill 69 543 64 119 69 444 Intangibles assets 90 216 41 307 91 997 Deposits and other non-current assets 7 940 1 651 7 179 Total non-current assets 167 699 107 077 168 620 Prepaid and other curr
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