Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q4 2023 Earnings Presentation
33 slides from Gentoo Media's earnings presentation, Feb 14, 2024
Slide 1: Q4-23 Interim Report
Q4-23 Interim Report | Gaming Innovation Group Inc 14 Feb 2024
Slide 2: Q4 Highlights
⇢ GiG delivers another successive all-time-high revenue Q4 ⇢ and EBITDA Platform & Sportsbook continued positive delivery with two additional new brands live. Experienced Highlights ⇢ management team and new and enhanced product offering launched GiG Media achieves record-high revenue, player intake
Slide 3: Strong performance last five years
Strong performance last five years … Revenues* (MEUR) EBITDA adj. (MEUR) EBIT (MEUR) Revenues EBITDA adj. EBIT +41% Y/Y +49% Y/Y +93% Y/Y +31% CAGR *Revenues are adjusted for revenues from a platform client where GiG recognizes the full operations in its profit and loss statement, which are partly off
Slide 4: … and all time high quarterly results
… and all time high quarterly results Revenues* (MEUR) EBITDA adj. (MEUR) EBIT (MEUR) Adjusted for one-offs and split related cost Adjusted for one-offs and split related cost 14.2 6.4 Revenues EBITDA adj. EBIT +37% Y/Y +17% Y/Y +19% Y/Y 35.2% margin 13.5% margin *Revenues are adjusted for revenues
Slide 5: Business update: Media
Business update MEDIA ⇢ | Q4 2023 - Interim Report 5
Slide 6: GiG Media Q4-2023 Key Highlights
GiG Media Q4-2023 Key Highlights GIG MEDIA Revenue ● Record-high quarterly revenue, player intake and EBITDA Revenue & EBITDA (MEUR) EBITDA adj. ● Q4-2023 revenues ended at €26.5m (17.8), up 49% YoY of which 24% organic ● Publishing excl. AskGamblers reached all-time-high in revenues, up 8% YoY and
Slide 7: GiG Media Net Cash Flow & Cash Conversion
GiG Media Net Cash Flow & Cash Conversion GIG MEDIA Net Cash Flow Net Cash flow (MEUR) & Cash Conversion (%) Cash Conversion ● GiG Media business is continuously expanding and growing ● Increased net cash flow, up by 29% YoY and 13% QoQ ● The business is maintaining an attractive cash conversion rate
Slide 8: GiG Media Revenue split
GiG Media GIG MEDIA Revenue split Q4-23 Revenue split ● 60% of revenue comes from recurring revenue share agreements ● Steady growth in revenue from the Nordics up 12% YoY. Revenue from rest of Europe up 64% YoY ● North American revenue rose 64% YoY, with LatAm slightly down YoY, expected due to hig
Slide 9: GiG Media FTDs
GiG Media FTDs Publishing GIG MEDIA - FTDs (1000s) Split between publishing and paid Paid ● First Time Depositors (FTD) ended at 138K - all time high - growing 19% YoY and 21% QoQ ● ~95% of FTDs on full revenue share or hybrid deals, 137.7 securing future recurring revenues 115.9 110.9 109.5 113.8 ●
Slide 10: GiG Media Full year 2023
GIG MEDIA Revenue Revenue & EBITDA (MEUR) GiG Media EBITDA Full year 2023 ● Full year 2023 revenue of €89.1m (61.7), up 44% YoY (of which 19% organic) ● EBITDA of €40.0m (29.6), up 35% YoY ● EBITDA-margin at 45% (48%) ● 472,000 FTDs in 2023, up 34% YoY GIG MEDIA ● Build-up of player base expected to
Slide 11: AskGamblers Acquisition
AskGamblers Acquisition ● Post-merger integration plan successfully implemented in 2023. Steady improvements of assets throughout 2023 ● Strong performance in Q4-23 compared to run rate at take-over: ○ Revenue up 93% ○ FTDs up 62% ○ and EBITDA more than doubled ● Executing technology migrations ○ Mi
Slide 12: KaFe Rocks Acquisition
KaFe Rocks Acquisition ● Acquisition enhances GiG Media's lead in the casino affiliate sector and supports expansion in North America and LatAm markets. ● Post-merger integration plan started in early January ● The acquisition will bring additional markets, websites, and customers, aligning with GiG
Slide 13: Core Strategy: Diversification
Both tier 1 and smaller websites show revenue growth* GiG Media Core Strategy: Diversification ● Business diversification ensures sustainable, long-term growth by reducing risks tied to singular markets, partners, and customers ● As we have transitioned from domestic champions to global leaders, GiG M
Slide 14: Core strategy: growth pillars
Core strategy: 6 growth pillars 01 We have ample opportunity to continue organic growth of business 04 Diversification will drive sustainable long-term growth for the business 02 We have a recipe for successful M&A and can fast-track growth further by acquisitions 05 Technology and data will give us
Slide 15: Technology & BI
Technology & BI ● Throughout the quarter, many single-market websites transitioned to GiG Media's proprietary media platform, enhancing the quality of offerings across the portfolio ● Several new features and improvements were added to GiG Media’s admin tools to further streamline workflow and proces
Slide 16: Summary & Outlook
Summary & Outlook ● All-time high revenue, player intake and EBITDA in the quarter ● Operational excellence: Strong organic growth of business and successful integration of AskGamblers into the business ● Ample opportunity to grow in existing markets ● Adding sports betting to AskGamblers to double
Slide 17: Business update: Platform & Sportsbook
Business update PLATFORM & SPORTSBOOK ⇢ | Q4 2023 - Interim Report 17
Slide 18: Key Platform & Sportsbook Takeaways
Key Platform & Sportsbook Takeaways Renewed focus on enlarging the Pipeline, increasing Innovation and improving Operational processes to drive an acceleration in KPIs Strategic Growth & Operational Initiatives Impact so far Strengthened the organisation ● Step up in new partner on-boarding cadence
Slide 19: Platform & Sportsbook Q4-2023
Platform & Sportsbook PLATFORM & SPORTSBOOK Revenue & EBITDA (MEUR) Revenue Q4-2023 EBITDA adj. ● Revenue*for Platform & Sportsbook at €9.1m (8.2), a 11% increase, all organic ● Adjusted EBITDA was €1.1m (1.8), down 42%, impacted with the tactical step-up in sportsbook, marketing, senior hires and b
Slide 20: Platform & Sportsbook Full year 2023
PLATFORM & SPORTSBOOK Platform & Sportsbook Revenue (MEUR) Full year 2023 ● Full year revenue for Platform & Sportsbook at €37.8m (28.3), a 33% increase all organic ● Adjusted EBITDA (excluding reversal of Earn-out provision) of €10.6m (4.6) up 139% YoY, with EBITDA margin increasing to 28% (16%) EB
Slide 21: Clients Live and Integration & sales pipeline
36 Clients Live Platform & Sportsbook Integration & sales pipeline ● Two brands went live in Q4-23 and three additional brands launched so far in 2024 Delivery pipeline with another 19 brands in the integration 62 Brands ● pipeline continuing to build future revenue and margin expansion ● Sales pipe
Slide 22: Strategic Growth Pillars
Key strategic pillars to drive revenue growth, improve recurring margins and generate sustainable ROI Strategic Growth Pillars 1. Enhancing our 2. Increase share of 3. New markets 4. Increased focus technology & partner wallet via expansion with on new business product offering x-sell and up-sell foc
Slide 23: Summary & Outlook
Summary & Outlook “ Strongly positioned for future profitable growth… Advanced discussions with ⇢ Flatter operational structure enabling faster decision making and reducing speed to market key partners and an expanding sales pipeline ⇢ Experienced and Proven Platform and Sportsbook senior management
Slide 24: Events after the quarter and summary
Events after the quarter and summary ⇢ | Q4 2023 - Interim Report 24
Slide 25: Update after the quarter
Update after the quarter ● January 2024 has developed positively, and group revenues are up 53% compared to the same period last year, whereof 20% organic growth ● Completed the sportsbook launch of the Betway brand in Portugal, and a sixth and seventh launch with partner BPlay in Latin America. Num
Slide 26: Summary
Summary “ ⇢ GiG delivers all-time-high revenue and EBITDA in 2023 ⇢ GiG Media has gone from strength to strength throughout 2023, with 2024 will be a strong organic growth and successful integration of AskGamblers into the business. Proven operational excellence transformational year ⇢ Platform busi
Slide 27: Thank you
Thank you Q&A | Q4 2023 - Interim Report 27
Slide 28: Appendix
Appendix | Q4 2023 - Interim Report 28
Slide 29: Largest shareholders: December 2023
Largest shareholders: 31 December 2023 GAMING INNOVATION GROUP INC. 1 13 487 500 10.46 % SkyCity Entertainment Group Limited 2 7 336 253 5.69 % Myrlid AS 3 6 456 998 5.01 % Optimus Invest Limited 4 6 005 587 4.66 % Nordea Livsförsäkring Sverige AB 5 5 304 733 4.11 % MJ Investments sp 6 4 832 342 3.7
Slide 30: Income Statement
Income Statement EUR 1000 (Unaudited) Q4 2023 Q4 2022 2023 2022 Revenues* 26 514 17 813 89 084 61 738 Cost of sales - - - - Gross profit 26 514 17 813 89 084 61 738 Marketing expenses 8 534 5 663 26 777 18 150 Other operating expenses 6 432 3 222 22 130 13 962 Total operating expenses 14 966 8 885 48
Slide 31: Balance Sheet
Balance Sheet EUR 1000 (unaudited) 31 Dec 2023 31 Dec 2022 Assets Goodwill 26 136 16 302 Intangibles assets 78 077 20 275 Deposits and other non-current assets 5 193 6 086 Total non-current assets 109 406 42 662 Trade and other receivables 25 523 14 492 Cash and cash equivalents 15 487 6 170 Total c
Slide 32: Cash Flow
Cash Flow In EUR 1000 Q4 2023 Q4 2022 2023 2022 Cash flow from operating activities 14 873 8 501 41 074 31 839 Cash flow from investing activities -21 518 -5 224 -55 422 -48 091 Cash flow from financing activities 21 672 -2 224 22 294 23 004 Translation (loss)/gain 56 12 -86 -104 Fair value movements -
Slide 33: Legal Disclaimer
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. Such factors include deve
Gaming Innovation Group — Q4 2023 Earnings Presentation on 6ix