Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q2 2020 Earnings Presentation
26 slides from Gentoo Media's earnings presentation, Aug 11, 2020
Slide 1: Q2 2020 Interim Report
Q2 2020 Interim Report 11 Aug 2020
Slide 2: Today's presenters
Q2 2020 - Interim Report Today’s presenters Richard Tore Brown Formo CEO Group CFO 2
Slide 3: iGaming solutions based on innovative technology
iGaming solutions based on innovative technology GiG focusing strategy on ambition to become global Tier 1 B2B provider. Our strategy is centered on two customer focused business areas, supported by our group ambition for top performance and operational excellence Group Platform & Sports Media Drive
Slide 4: GiG in brief
Q2 2020 - Interim Report GiG in brief ~470 €65m Approx. Employees Market cap Dual-listed Offices in Malta, on Oslo Børs and at Denmark & Spain Nasdaq Stockholm Global Platform Over 25 primary Licenses: Malta, UK, countries targeted by New Jersey & Iowa, Media assets Sweden, Spain, Romania, Croatia,
Slide 5: Key takeaways Q2 2020
Q2 2020 - Interim Report Key takeaways Q2 2020 ● Continued quarterly growth with revenues in Q2 2020 of €16.7m (11.3), 47% growth Y/Y and 49% Q/Q ● EBITDA in Q2 was €2.8m (1.5), 93% growth Y/Y and 382% Q/Q ● EBITDA margin of 17.0% (13.0%) ● EBITDA for Sports Betting Services improved to €-0.9m (-1.5
Slide 6: Head figures development
Q2 2020 - Interim Report Head figures development Revenues EBITDA (MEUR) (MEUR) Revenues Revenues adj. EBITDA +47% Y/Y +16% Y/Y +93% Y/Y +49% Q/Q +23% Q/Q +382% Q/Q *Reported revenues includes revenues from Sky City, a platform client were GiG recognize the full operations in 6 its profit and loss s
Slide 7: Strategic Update
Q2 2020 - Interim Report Strategic Update 7
Slide 8: Significant growth opportunities
Q2 2020 - Interim Report Significant growth opportunities Global Online Gambling Market in Bn EUR 2024e The global online gambling market is estimated 2023e to be worth €53 billion in 2019 2022e CAGR 9% 20202024 Despite the COVID impact, market is still 2021e LB CAGR 2019-2024 1% estimated to remai
Slide 9: Positioned to capitalise on projected growth in regulated markets
Q2 2020 - Interim Report Positioned to capitalise on projected growth in regulated markets GiG is well positioned via its Platform and Media business units to capitalize on the growth in the in the industry by positioning itself in high barrier to entry re-regulating and regulating markets where dri
Slide 10: Strengthening client base and future revenue
Q2 2020 - Interim Report Strengthening client base and future revenue ● Sales pipeline developing well despite delays in processes caused by Covid-19 ● Signed long-term agreement with GS Technologies Limited for the provision of GiG's platform and front-end development to a new casino brand with its
Slide 11: GiG's core strengths are positioning us to capture our target market
Q2 2020 - Interim Report GiG’s core strengths are positioning us to capture our target market: GiG’s Strengths ● Platform: providing Casino, Sportsbook and Data technology to Operators ● End to End product and service solutions globally as well as full Managed Services ● First class technology and p
Slide 12: Business Update
Q2 2020 - Interim Report Business Update 12
Slide 13: Media Services
Q2 2020 - Interim Report Media Services Revenue & EBITDA (MEUR) Media services ● GiG Media Services continued its growth and positive development in Q2. FTDs increased by 22% and revenues by 5% Q/Q ● Paid media continues to see quarter on quarter improvements with revenue up 27% YoY and 21% QoQ ● Go
Slide 14: Platform Services
Q2 2020 - Interim Report Platform Services Platform services Revenue & EBITDA (MEUR) ● Revenues for Platform Services were €8.2 (4.2) million in the second quarter 2020. Adjusted revenues* were €4.7 (4.2) million, a 11% increase Y/Y and 22% Q/Q ● EBITDA for the second quarter 2020 was €-0.9 (-1.1) m
Slide 15: Sports betting services
Q2 2020 - Interim Report Sports betting services Sports Betting Services Revenue & EBITDA (MEUR) ● Revenues were impacted by the closure of sport events in the quarter due to COVID-19 ● A restructuring initiative was rolled out in April to significantly reduce costs. Full effects will be seen in Q4-
Slide 16: Cost savings & initiatives
Q2 2020 - Interim Report Headcount – end of quarter Cost savings & initiatives GiG continues to focus on cost control and optimise the Company to support the new focused B2B business. ● Tech costs down by ~33% QoQ as team begins infrastructure migration ● Continued decline in overall headcount in th
Slide 17: Events after the quarter & Summary
Q2 2020 - Interim Report Events after the quarter & Summary 17
Slide 18: Update after the quarter
Q2 2020 - Interim Report Update after the quarter ● Signed three new long term customers onto the platform and one Sportsbook customers ● Two of which are land based casino groups in regulated markets, where GiG can provide omni channel offering and assist them with capturing emerging local markets
Slide 19: Summary
Q2 2020 - Interim Report Summary ● Continued quarterly growth in both revenue and EBITDA despite reduction in sporting events ● Media business delivered growth in all KPI’s, for second consecutive quarter, a testament to agility to react to situations ● The sale of B2C was finalised and GiG complete
Slide 20: Q/A
Q2 2020 - Interim Report Q/A 20
Slide 21: Appendix
Q2 2020 - Interim Report Appendix 21
Slide 22: Largest shareholders July 2020
Q2 2020 - Interim Report Largest shareholders 31 July 2020 1 7 603 559 8,4 % Andre Lavold 2 6 800 000 7.6 % Swedbank Robur Ny Teknik 3 6 154 552 6.8 % Myrlid AS 4 4 896 125 5.4 % Henrik Persson Ekdahl 5 3 880 999 4.3 % Morten Hillestad Holding AS 6 3 509 128 3.9 % Hans Mikael Hansen 7 2 699 324 3.0
Slide 23: Income statement
Q2 2020 - Interim Report Income statement EUR 1 000 (Unaudited) B2C included as discontinued operations Q2 2020 Q2 2019 6M 2020 6M 2019 2019 Revenues 16 678 11 338 27 840 23 581 44 054 Cost of sales 806 249 1 231 520 906 Gross profit 15 872 11 089 26 609 23 061 43 148 Gross profit margin 95% 98% 96%
Slide 24: Balance sheet
Q2 2020 - Interim Report Balance sheet EUR 1 000 (unaudited) B2C included as discontinued operations 30 Jun 2020 30 Jun 2019 31 Dec 2019 Assets Goodwill 15 516 69 525 15 995 Intangibles assets 36 260 63 012 40 912 Deposits and other non-current assets 20 476 26 208 20 191 Total non-current assets 72
Slide 25: Cash flow
Q2 2020 - Interim Report Cash flow In EUR 1 000 B2C included as discontinued operations Q2 2020 Q2 2019 6M 2020 6M 2019 2019 Cash flow from operating activities 10 054 3 189 18 112 5 818 4 077 Cash flow used by investing activities 20 793 -3 469 17 786 -7 649 -10 501 Cash flow from financing activit
Slide 26: Legal disclaimer
Q2 2020 - Interim Report 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.
Gaming Innovation Group — Q2 2020 Earnings Presentation on 6ix