Acroud Ab · OMXSTO:ACROUD
Acroud Ab — Q3 2022 Earnings Presentation
26 slides from Acroud Ab's earnings presentation, Nov 1, 2022
Slide 1: Q3 2022 Interim Report: Another piece in Acroud's transformation
Q3 2022 I N T E R I M R E P O R T Another piece in Acroud’s transformation 1
Slide 2: Agenda
Q3 2022 I N T E R I M R E P O R T Robert Andersson CEO 1. Q3 summary 2. Acroud Media Ltd 3. Target Update 4. The Offer 5. House of Brands 6. Financial Details 7. Q&A Roderick Attard CFO
Slide 3: Q3 Key Figures
Q3 Key Figures • Revenue amounted to. . . . . . . . . . . . . . . . . . . . . . . . EUR 6 683 (6 448) • EBITDA amounted to . . . . . . . . . . . . . . . . . . . . . . . . EUR 1 496 (1 258) • Profit after tax was . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EUR -589 (593) • New Depos
Slide 4: Q3 In words
Q3 In words • Summer with seasonal volatility. • Affiliation: 3M in revenues (YoY +12%) • Affiliation: “Gambling Villa” Ready for World Cup. • Saas: Network & Subscription Models with hidden potential. • The successful acquisition strategy. Investor Presentation Q3 2022
Slide 5: Acquisition of Acroud Media Ltd completed
AGILE m o re o p p o r t u n i s t i c Acquisition of Acroud Media Ltd DIVERSIFIED l e s s d e p en d e n t o n SE O completed GROWTH s t ab l e re v en u e s t re a m Investor Presentation Q3 2022
Slide 6: Target Update
y e a r- o n - y ear g ro w t h t o d at e +19% EBITDA Full Year Target Update o n t r ack t o g e n e r at e 8-9M EUR 2022 Investor Presentation Q3 2022
Slide 7: Group Revenue Development
Group Revenue Development 8000 7200 7003 7000 6540 6683 6448 6200 6000 5579 5000 4000 SaaS 3000 2497 iGaming Affiliation 2000 1000 0 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Investor Presentation Q3 2022
Slide 8: The Offer: diversified intelligent business
THE PPC + Innovative SEO Media inhouse OFFER Continued development in our tier 1, 2 and 3 GEOs SEO strategy is paying off at CPA/Hybrid models a diversified Software & Technology and intelligent approach to our Advertising Media House Networks Partnerships business Building strong relationships with
Slide 9: House of Brands vs. Branded House
House of Brands vs. Branded House
Slide 10: Financial Details
Financial Details Investor Presentation Q3 2022
Slide 11: Group Revenue and NDC development
Group Revenue development NDC development 8000 39632 40000 7200 7003 35134 7000 6683 35000 33538 33792 6448 6540 31787 32328 6200 6000 30000 29448 5579 5000 25000 4000 20000 3000 15000 2497 11262 2000 10000 1000 5000 0 0 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q
Slide 12: Group Revenue Bridge vs Q3-2021
Group Strategic decisions implemented since 2021 to diversify the Company’s revenues and risk Revenue Bridge profile are bearing fruit as the Company shows revenue growth in absolute and organic terms. vs Q3-2021 Year-on-year growth in revenue in Q3-22 of 4% is driven by growth in SaaS subscription
Slide 13: Group Cost Bridge vs Q2-2022
Group Q3-2022 operating expenses have decreased compared to Q2-2022. The decrease is driven by the decrease in payout costs to sub-affiliates in SaaS Network (driven by decrease in revenue) and personnel costs. Such declines Cost Bridge were set-off against increase in other external costs (represen
Slide 14: Group Adjusted EBITDA development
Group Adjusted EBITDA development 2000 1781 1802 19% growth Investments in growth initiatives and the execution of the 1574 1500 1496 Efficiency plan are delivering results as Group’s EBITDA in 1500 Q3-2022 increasing by 19% year-on-year to EUR 1 496 1258 thousand, driven by revenue growth and a lea
Slide 15: iGaming Affiliation Revenue Development
iGaming Affilation Revenue 3500 3200 3029 3000 2968 Development 2500 2715 2700 iGaming Affiliation revenue in Q3 increased to EUR 3 029 (2 715) thousand, representing 12% improvement year-on-year. The Growth 2000 is driven purely by organic initiatives and growth investments implemented in regulated
Slide 16: iGaming Affiliation Revenue Model by Market
iGaming Affilation 38% (53%) 15% (10%) Revenue share Other Revenue 31% (26%) Other Revenue 11% (21%) North America Model by Market 31% (21%) 74% (68%) CPA Europe The revenue share represented 38% of total affiliation revenues (or 55% of Europe continues to be our biggest success story, which in Q3-2
Slide 17: iGaming Affiliation NDCs Development
iGaming Affilation 25000 21375 20732 NDCs 20000 18763 18178 Development 15268 15000 New Depositing Customers (NDC) continued to grow too - 10000 reaching 21 375 NDCs in the third quarter compared with 18 178 the corresponding period the previous year. NDC levels within the iGaming Affiliation is gro
Slide 18: iGaming Affiliation EBITDA Development
iGaming Affilation 1480 1488 1500 EBITA 1200 1212 1110 Development 900 1009 EBITDA in the iGaming Affiliation segment in Q3-2022 amounted to EUR1 110, representing a drop of 8% year-on- 600 year growth. The iGaming affiliation segment is operating with an EBITDA margin of approximately 45-55%. EBITD
Slide 19: iGaming Affiliation Cost Base Development
iGaming Affilation 2 500 Adj. 2 000 Cost Base Development 1 500 1 512 1 500 1 236 1 297 1 575 Personnel costs in iGaming affiliation has decreased by 28% 1 000 year-on-year and 15% quarter-on-quarter. The increase in other external costs year-on-year (+27%) and quarter-on- quarter (+5%) is driven ma
Slide 20: SaaS Segment Revenue Development
SaaS Segment 5000 4035 4001 4000 3840 3733 3654 Revenue Development 3000 2000 SaaS segment revenues has decreased -2% year-on-year and -9% quarter-on-quarter. The decline is coming from the network model which in Q3-22 revenue amounted to EUR 3 1000 379 thousand (representing a decrease of -4% year-
Slide 21: SaaS Segment EBITDA Development
SaaS Segment 600 540 539 Adj. 508 500 EBITDA 400 Development 300 271 247 200 The SaaS segment continued to show high EBITDA results, increasing by 99% year-on-year. EBITDA margin has also improved, to 15% in Q3-2022. This improvement is driven by 100 investments and growth initiatives implemented in
Slide 22: SaaS Segment RGU Development
SaaS Segment 500 422 393 398 401 395 400 RGU Development 300 200 The number of RGUs (Revenue Generating Units) in SaaS in the third quarter amounted to 395 (393). 100 Focus coming quarters will continue to be increasing the number of customers within the subscription-based business model such as Voo
Slide 23: Financing & Cash Flow
Financing & Cash Flow Gross Debt Net Debt / Adjusted EBITDA 22 000 20 847 20 949 3,5 20 014 20 000 19 255 3,0 18 304 18 000 2,5 16 000 3,3 3,3 2,0 3,0 3,1 2,9 14 000 12 000 1,5 10 000 1,0 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Acroud's business model enables fast deleveraging th
Slide 24: Cash Flow Development
EUR ’000 Q3’22 Q3’21 YTD22 YTD21 EBITDA 1 496 1 258 5 547 3 857 Non cash items (2) 25 (410) 56 Change in NWC (362) (53) (869) (321) Tax paid (50) (566) (211) (951) Operating CF 1 082 664 4 057 2 641 CF from investments (1 278) (351) (2 843) (4 565) CF from financing activities 707 (972) (1 659) (2 9
Slide 25: Closing Comments and Q&A
Closing Comments and Q&A
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