Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q1 2020 Earnings Presentation
24 slides from Gentoo Media's earnings presentation, May 5, 2020
Slide 1: Q1 2020 Interim Report
Q1 2020 Interim Report 05 May 2020
Slide 2: Today's presenters
Q1 2020 - Interim Report Today’s presenters Richard Tore Brown Formo CEO Group CFO 2
Slide 3: GiG in brief
Q1 2020 - Interim Report GiG in brief ~500 €40m Approx. Employees Market cap Offices in Malta, Dual-listed Denmark, Gibraltar, on Oslo Børs and at Norway, Spain, USA Nasdaq Stockholm Licences Malta, UK, New Jersey, Sweden, 33 customers Germany S-H, Spain, on the platform Romania, Croatia (pending) 3
Slide 4: Key Takeaways Q1 2020
Q1 2020 - Interim Report Key Takeaways Q1 2020 ● Return to quarterly growth after four consecutive quarters with decline ● Strategic review to identify value-creating opportunities, future proof the business and create shareholder value. The B2C vertical was divested to Betsson, SPA signed in Februa
Slide 5: Head figures development
Q1 2020 - Interim Report Head figures development B2C included as Revenues EBITDA discontinued operations (MEUR) B2C included Revenues EBITDA as continued operations (MEUR) 5
Slide 6: Strategic & Operational Update
Q1 2020 - Interim Report Strategic & Operational Update 6
Slide 7: GiG focusing on ambition to become global Tier 1 B2B provider - divesting B2C
Q1 2020 - Interim Report GiG focusing on ambition to become global Tier 1 B2B provider - divesting B2C Strategic review initiated November ● Decrease overall financial risk 2019 to reduce complexity in the ● Decrease strategic risk business, focus on value creation and ● Increase earnings stability
Slide 8: B2C divestment - Multiple upsides for GiG
Q1 2020 - Interim Report B2C divestment - Multiple upsides for GiG Platform Ancillary Sports Betting Media Gaming Services Services Services Operators B2B B2B B2B B2C Platform, Data & Ancillary Lead generation through online In-house Gaming Sportsbook media buys & publishing services operator brands
Slide 9: Business Update
Q1 2020 - Interim Report Business Update 9
Slide 10: Cost savings & initiatives
Q1 2020 - Interim Report Cost savings & initiatives Headcount – end of quarter GiG continues to focus on cost control and optimise the Company to support the new focused B2B business. ● Continued decline in overall headcount in the quarter ● Tech costs down by 11% QoQ as team begins infrastructure m
Slide 11: Media services (B2B)
Q1 2020 - Interim Report Media services (B2B) ● Media Services return to quarterly growth in revenue (9%) & EBITDA (13%) EUR million Media Services & EBITDA (MEUR) ● FTDs also back to QoQ growth (15%) after three quarters of decline – growth in revenue and FTDs back on track ● Paid Media showed a po
Slide 12: Platform services (B2B)
Q1 2020 - Interim Report Platform services (B2B) EUR million Platform Services Revenue & EBITDA (MEUR) ● Revenue of €4.3m, a 3% decline QoQ due to seasonality effects ● EBITDA impacted by marketing expenses related to ICE ● Launched MegaLotto onto the platform expanding GiG footprint across iGaming
Slide 13: Sports betting services (B2B)
Sports betting services (B2B) EUR million Sports Betting Services - Revenue & EBITDA (MEUR) ● Sportsbook restructuring initiated, which will lead to around €400k in monthly savings in GiGs sportsbook when completed - placing it in a sustainable position for growth and strategic partnerships ● GiG ai
Slide 14: Gaming operators (B2C)
Q1 2020 - Interim Report Gaming operators (B2C) (Business vertical divested effective April 2020) EUR million GiG Gaming - Revenue & EBITDA (MEUR) ● Revenue grew QoQ despite normal seasonal impact of Q1 vs Q4 and contributed €20.0m to the group top line and €1.2m in EBITDA ● EBITDA impacted by ○ Inc
Slide 15: Events after the Quarter & Summary
Q1 2020 - Interim Report Events after the Quarter & Summary 15
Slide 16: Update after Q1 2020
Q1 2020 - Interim Report Update after Q1 2020 ● B2C divestiture completed on 16th of April and SEK 300m bond repaid ● April revenues for Platform Services was 35% ahead of the Q1 average and 40% higher than same period last year ● Rolled out Sportsbook restructure that will see cost savings in range
Slide 17: Summary
Q1 2020 - Interim Report Summary ● Return to quarterly growth after four consecutive quarters with decline ● Sale of B2C completed and 2017-2020 bond repaid ● Growth in revenue and FTDs in Media - back on track after three consecutive quarters with decline ● The sales pipeline is developing positive
Slide 18: Q/A
Q1 2020 - Interim Report Q/A 18
Slide 19: Appendix
Q1 2020 - Interim Report Appendix 19
Slide 20: Largest shareholders March 2020
Q1 2020 - Interim Report Largest shareholders 31 March 2020 GAMING INNOVATION GROUP INC. 1 7 603 559 8,4 % Andre Lavold 2 7 000 000 7.8 % Swedbank Robur Ny Teknik 3 6 420 474 7.1 % Myrlid AS 4 4 896 125 5.4 % Henrik Persson Ekdahl 5 4 330 970 4.8 % Skandinaviska Enskilda Banken LUX nom. 6 3 880 999
Slide 21: Income statement
Q1 2020 - Interim Report Income statement EUR 1 000 (Unaudited) Q1 2020 Q1 2019 2019 Q1 2020 Q1 2019 2019 B2C as discontinued operation B2C as continued operation Revenues 11 162 12 244 44 054 31 141 32 423 123 026 Cost of sales 425 271 906 6 799 6 447 24 090 Gross profit 10 737 11 973 43 148 24 342
Slide 22: Balance sheet
Q1 2020 - Interim Report Balance sheet EUR 1 000 (unaudited) 31 Mar 2020 31 Mar 2019 31 Dec 2019 31 Mar 2020 31 Mar 2019 31 Dec 2019 B2C included as discontinued operations B2C included as continued operations Assets Goodwill 15 115 69 547 15 995 37 415 69 547 40 822 Intangibles assets 38 920 66 163
Slide 23: Cash flow
Q1 2020 - Interim Report Cash flow In EUR 1 000 Q1 2020 Q1 2019 2019 Q1 2020 Q1 2019 2019 B2C included as discontinued operations B2C included as continued operations Cash flow from operating activities 8 059 3 653 4 077 8 059 4 399 15 552 Cash flow from investment activities -3 007 -3 434 -10 501 -
Slide 24: Legal disclaimer
Q1 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 — Q1 2020 Earnings Presentation on 6ix