Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q3 2019 Earnings Presentation
31 slides from Gentoo Media's earnings presentation, Nov 6, 2019
Slide 1: Q3 2019
Q3 2019 6 November 2019
Slide 2: Today's presenter
Q3 2019 - Quarterly Results Today’s presenter Richard Brown CEO 10+ Years in Online Gambling Industry Joined GiG in February 2017 as Managing Director for GiG Media Services Group COO from September 2018 “Honored to lead the company and truly excited about the future potential of the Group” 2
Slide 3: Outline
Q3 2019 - Quarterly Results Outline • Business Overview & Key Takeaways • Q3 Financial Results • Strategic & Business Update • Action Points & Summary • Q/A 3
Slide 4: iGaming solutions based on innovative technology
Q3 2019 - Quarterly Results iGaming solutions based on innovative technology Products and services throughout the entire iGaming value chain iGaming value chain Technical Platform, Content & Ancillary Sportsbook Marketing Operators Services Platform Sports Betting Media Gaming Services Services Serv
Slide 5: GiG in brief
Q3 2019 - Quarterly Results GiG in brief 650+ €70m Approx. Employees Market cap Offices in Malta, Dual-listed Denmark, Gibraltar, on Oslo Børs and at Norway, Spain, USA Nasdaq Stockholm Licences in Malta, UK, 4 own brands and New Jersey, Sweden, 34 customers Germany S-H, Spain, on the platform and R
Slide 6: Key Takeaways Q3 2019
Q3 2019 - Quarterly Results Key Takeaways Q3 2019 Positive underlying business position and drivers despite challenging market conditions • Launched casino solution with new long-term partner SkyCity Entertainment Group • Extended partnership with Hard Rock Intl. with launch of sports betting in the
Slide 7: Head figures development
Q3 2019 - Quarterly Results Head figures development 12 months rolling revenues 12 months rolling EBITDA EUR million EUR million 7
Slide 8: Q3 Financials
Q3 2019 - Quarterly Results Q3 Financials €30.2m €6.7m €7.1m €13.7m €2.7m Revenues Cost of sales Marketing Other opex EBITDA -19% Y/Y +5% Y/Y -33% Y/Y -10% Y/Y -46% Y/Y 8
Slide 9: Strategic & Operational Update
Q3 2019 - Quarterly Results Strategic & Operational Update 9
Slide 10: Strategic review & long term value creation
Q3 2019 - Quarterly Results Strategic review & long term value creation • Strategic review initiated and advisors appointed • Objectives of the Review • Identify value-creating opportunities • Reduce complexity • Improve efficiency • Strengthen strategic positioning • Drive execution ability in all
Slide 11: Cost savings & initiatives
Q3 2019 - Quarterly Results Cost savings & initiatives Actions taken over the last year have lead to a YTD reduction in reported other operating expenses of €5.2m Headcount – end of quarter Initiatives: • Strengthened cash flow by appr. €250K per month from November by halting investments in GiG Gam
Slide 12: Business Update
Q3 2019 - Quarterly Results Business Update 12
Slide 13: Gaming operators (B2C)
Q3 2019 - Quarterly Results Gaming operators (B2C) Repositioning from multi-brand strategy in 2018 yielding EUR million positive results GiG Gaming - Revenue & EBITDA (MEUR) • EBITDA reached an all-time-high of €2.4m despite the continued market challenges in Sweden affecting revenues • Rizk was the
Slide 14: B2C Swedish market split of Unique Depositing Customers
Q3 2019 - Quarterly Results B2C Swedish market split of Unique Depositing Customers Rizk Total B2C Rizk Total B2C 14
Slide 15: B2C Revenue split in the Swedish market
Q3 2019 - Quarterly Results B2C Revenue split in the Swedish market Rizk Total B2C Rizk Total B2C 15
Slide 16: Media services (B2B)
Q3 2019 - Quarterly Results Media services (B2B) EUR million Media Services & EBITDA (MEUR) • Revenues temporarily impacted by declining player values mainly in Sweden and Norway and lower Google rankings in mature markets, this is expected to revert to previous high rankings and growth in new marke
Slide 17: Platform services (B2B): Transition to SaaS from White Label model
Q3 2019 - Quarterly Results EUR million Platform services (B2B) Platform Services - Revenue & EBITDA (MEUR) Transition to SaaS from White Label model • Revenues declined mainly due to the termination of a major customer in 2018 impacting YoY revenues by €2.7m together with the impact from the Swedis
Slide 18: Sports betting services (B2B)
Q3 2019 - Quarterly Results Sports betting EUR million Sports Betting Services - Revenue & EBITDA (MEUR) services (B2B) • New leadership group in sportsbook with definite target to breakeven (incl. contribution from B2C NGR) in H1 2020 driven by the Guts brand • Focused market approach, initially on
Slide 19: Action Points & Summary
Q3 2019 - Quarterly Results Action Points & Summary 19
Slide 20: Main Action Points Matrix
Q3 2019 - Quarterly Results Main Action Points Matrix Business Area Action Revenue Generation Cash Saving Progress Group Close GiG Games to reduce operational complexity and improve capital X Completed allocation Full strategic review of Gaming Innovation Group X X In Progress Initiated bond refinan
Slide 21: Summary
Q3 2019 - Quarterly Results Summary • A global position with positive underlying KPIs • The industry is adjusting and adapting to a new reality. GiG is coming to the end of its investment period and is focusing on execution, performance and to reduce complexity • Well positioned in all business area
Slide 22: Q/A
Q3 2019 - Quarterly Results Q/A 22
Slide 23: Appendix
Q3 2019 - Quarterly Results Appendix 23
Slide 24: Largest shareholders September 2019
Q3 2019 - Quarterly Results Largest shareholders 30 September 2019 GAMING INNOVATION GROUP INC. 1 8,300,000 9.2 % Swedbank Robur Ny Teknik 2 6,446,427 7.2 % Super Innovative Ltd. 3 5,150,687 5.7 % Andre Lavold 4 4,696,125 5.2 % Henrik Persson Ekdahl 5 4,360,445 4.8 % Hans Mikael Hansen 6 4,215,022 4
Slide 25: Income statement
Income statement Q3 2019 - Quarterly Results Condensed Statements of Operations in EUR 1 000 (Unaudited) Q3 2019 Q3 2018 9M 2019 9M 2018 2018 Revenues 30 226 37 283 93 621 111 507 151 372 Cost of sales 6 672 6 348 19 693 19 562 27 358 Gross profit 23 554 30 935 73 928 91 945 124 014 Gross profit mar
Slide 26: Cash flow
Q3 2019 - Quarterly Results Cash flow In EUR 1 000 Q3 2019 Q3 2018 9M 2019 9M 2018 2018 Cash flow from operating activities 2 351 422 10 339 10 680 12 484 Cash flow from investment activities -2 027 -2 618 -9 676 -9 176 -12 386 Cash flow from financing activities -4 424 - -4 148 - 2 374 Translation
Slide 27: Balance sheet
Q3 2019 - Quarterly Results Balance sheet Condensed Balance Sheet in EUR 1 000 (Unaudited) 30 September 2019 30 September 2018 31 Dec 2018 Assets Goodwill 69 396 69 681 69 570 Intangibles assets 57 084 85 580 69 253 Deposits and other non-current assets 22 265 8 385 8 061 Total non-current assets 14
Slide 28: Cash position
Q3 2019 - Quarterly Results Cash position 28
Slide 29: Bond structure & loans
Q3 2019 - Quarterly Results Bond structure & loans Gaming Innovation Group Plc. issued a new SEK400 million senior secured bond with a SEK1,000 million borrowing limit on 28 June 2019. The bond matures in June 2022 and will be listed on Nasdaq Stockholm in H2 2019. SEK350 million of the new bond iss
Slide 30: Sustainability
Q3 2019 - Quarterly Results Sustainability Sustainable and long-term profitable growth is at the core of all aspects of GiG’s corporate strategy. GiG focuses its sustainability strategy on areas most relevant to its business, at the heart of which is responsible gambling. Initiatives in Q3 2019: • C
Slide 31: Legal disclaimer
Q3 2019 - Quarterly Results 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 outcome
Gaming Innovation Group — Q3 2019 Earnings Presentation on 6ix