Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Gaming Innovation Group — Q2 2024 Earnings Presentation
29 slides from Gentoo Media's earnings presentation, Aug 28, 2024
Slide 1: Q2-24 Interim Report
Q2-24 Interim Report | Gaming Innovation Group Inc 28 August 2024
Slide 2: Split Update: strategic review proceeding according to plan
The strategic review initiated in 2023 is proceeding Split ⇢ according to plan ⇢ GiG will split the company in two by distributing Platform & Sportsbook to its shareholders Update ⇢ Subject to regulatory and shareholder approvals we expect first day of trading for platform on October 1st ⇢ The Board
Slide 3: Q2 2024 Highlights
Q2 - 2024 Highlights ⇢ Gentoo Media achieved record-high revenue and EBITDA in the quarter, marking the 14th consecutive quarter of all-time high revenue ⇢ Platform & Sportsbook (discontinued business) has built a solid foundation for growth, securing significant contracts and developing a growing pi
Slide 4: Business update
Business update ⇢ | Q2 2024 - Interim Report 4
Slide 5: Gentoo Media Q2-2024 Key Highlights
Gentoo Media Q2-2024 Key Highlights GIG MEDIA Revenue & EBITDA (MEUR) Revenue EBITDA ● Record-high quarterly revenue and EBITDA 39% ● Q2-2024 revenues ended at €30.3m (21.7), up 39% YoY of which 18% organic ● 14th successive quarter with all-time high revenue ● EBITDA of €14.8m (10.3), up 43% YoY ●
Slide 6: Gentoo Media Q2-2024 Revenue Split
Gentoo Media Revenue split Q2-24 Gentoo Media Q2-2024 Revenue Split ● 65% of our revenue comes from recurring revenue share agreements, with earnings up 43% YoY ● European revenue grew 43% YoY and 2% QoQ, driven by markets outside the Nordics ● Revenue from the Americas increased by 94% YoY and 27%
Slide 7: Gentoo Media Q2-2024 Player Intake
Gentoo Media Q2-2024 Player Intake Gentoo Media - FTDs (1000s) Publishing Split between publishing and paid Paid ● First-Time Depositors (FTDs) reached 122K, marking an 11% YoY increase ● Publishing saw a 17% YoY rise in player intake, while Paid intake increased by 5% YoY 137.7 125.1 121.9 109.5 11
Slide 8: Core strategy: Diversification
Wider portfolio of smaller websites show revenue growth* Gentoo Media Core strategy: Diversification ● Diversification Strategy: More markets, websites, and customers should drive revenue to mitigate risks and ensure sustained growth ● Broad Revenue Growth: Non-top 5 websites grew 48% YoY and 10% QoQ,
Slide 9: Summary & Outlook
Summary & Outlook ● Record quarter: All-time high revenue and EBITDA ● 65% of our revenue comes from recurring revenue share agreements, up 43% YoY. Bulk of players acquired this quarter are on recurring revenue share deals, similar to previous quarter. ● Europe and Americas account for 81% of Gento
Slide 10: Platform & Sportsbook Business update
Business update PLATFORM & SPORTSBOOK ⇢ | Q2 2024 - Interim Report 10
Slide 11: Foundations continue to build for growth
Focus on enlarging the Pipeline, increasing Innovation and improving Operational processes starting to have a positive impact Foundations continue to build for growth 1 Enhancing our technology & product offering 2 Improve operational execution/focus 3 New markets expansion with focus on profit 4 Incr
Slide 12: Platform & Sportsbook Overview Q2-2024
Platform & Sportsbook Overview Q2-2024 ● Encouraging underlying recurring revenue performance ➔ Improving YoY recurring revenue growth and improvement in the PLATFORM & SPORTSBOOK medium-term revenue visibility RECURRING REVENUE ➔ Q3/Q4 & 2025 recurring revenue growth expected to accelerate (MEUR) ●
Slide 13: Platform & Sportsbook Revenue Q2-2024
PLATFORM & SPORTSBOOK Revenue Platform & Sportsbook Revenue & Adjusted EBITDA (MEUR) EBITDA adj. Q2-2024 ➔ Revenue for Platform & Sportsbook at €7.3m (9.3), a 22% decrease driven primarily by GiG Enterprise Solution and client exits from 2023 ➔ Excluding the GiG Enterprise Solution and excluding cli
Slide 14: Platform & Sportsbook Revenue Bridge
Platform & Sportsbook PLATFORM & SPORTSBOOK Q2-24 REVENUE BRIDGE (MEUR) Revenue Bridge Q2-2024 ➔ GiG Enterprise Solution -€1.7m YoY ◆ Reflects accounting treatment with the majority of the transaction recognised in 2023 ➔ Client exits -€0.9m YoY ◆ Legacy operational and client management issues ◆ Act
Slide 15: Platform & Sportsbook Adjusted EBITDA Bridge
Platform & Sportsbook PLATFORM & SPORTSBOOK Q2-24 ADJUSTED Adjusted EBITDA* Bridge EBITDA BRIDGE Q2-2024 (MEUR) ➔ Revenue decline -€2.0m YoY EBITDA impact ◆ Reflects -€1.7m Enterprise Solution decline, -€0.9m client exits, offset by €0.6m revenue growth ➔ People investment -€1.4m YoY EBITDA impact ◆
Slide 16: New brand launches H1-23 to H2-24F
New brand launches H1-23 to H2-24F Platform & Sportsbook Integration pipeline delivery growing ➔ Four brands went live in Q2-24 versus two brands in Q2-23 giving 10 for H1-24 versus 3 new brands in H1-2023 ➔ 16 brands in the integration pipeline continuing to build future revenue and margin expansio
Slide 17: Sales Pipeline development Q4-23 to Q2-24
Sales Pipeline development Q4-23 to Q2-24 Platform & Sportsbook Revenue (MEUR) Significant increase in addressable market ➔ Aggregate pipeline value increased 25% Q/Q to stand at €39m and continues to be driven by the X-Suite products coupled with enhanced sales strategies ➔ €16m signed or at advance
Slide 18: 2024 Platform Revenue and EBITDA guidance
2024 Platform Revenue and EBITDA guidance Q4 2024 Revenue and EBITDA 2024 Q3 & Q4 mid-point 2024 Q3 & Q4 EBITDA adj. expected to inflect revenue guidance guidance 8.8 8.3 ⇢ 2024 GiG Platform revenue expected 7.3 to be in the range of €30m - €33m 7.4 (midpoint €32m) ⇢ Q3 recurring revenue and total gr
Slide 19: 2025 Platform Revenue and EBITDA guidance
2025 Platform Revenue and EBITDA guidance Significant Revenue and EBITDA 2025 revenue guidance 2025 EBITDA adj. growth projected in 2025 phasing by quarter guidance phasing by quarter ⇢ 2025 GiG Platform revenue is expected to be at least €44m implying +38 YoY growth ⇢ As of today 82% of 2025 revenue
Slide 20: Summary & Outlook
Summary & Outlook 40 Clients Live Improving operational foundations starting to drive improvement in revenue quality and visibility … ⇢ Revenue has stabilised and is expected to accelerate in H2-24 onwards ⇢ Client delivery cadence continue to improve as does average revenue per 72 Brands client ⇢ Q
Slide 21: Events after the quarter and summary
Events after the quarter and summary ⇢ | Q2 2024 - Interim Report 21
Slide 22: Summary
Summary “ ⇢ Subject to remaining regulatory and shareholder approvals, we expect the split to be executed by the end of September and first day of trading for Platform on the 1st of October 2024 ⇢ Record-high quarterly revenue and EBITDA in Gentoo Media We are enthusiastic about ⇢ The 14th consecutiv
Slide 23: Thank you
Thank you Q&A | Q2 2024 - Interim Report 23
Slide 24: Appendix
Appendix | Q2 2024 - Interim Report 24
Slide 25: Income Statement
Income Statement EUR 1000 (Unaudited) Q2 2024 Q2 2023 6M 2024 6M 2023 2023 Revenues 30 268 21 775 58 242 40 321 88 621 Cost of sales 36 - 37 1 - Gross profit 30 232 21 775 58 205 40 320 88 621 Marketing expenses 8 397 6 040 15 210 11 429 26 777 Other operating expenses 7 070 5 428 14 721 10 404 22 27
Slide 26: Balance Sheet
Balance Sheet EUR 1000 (unaudited) 30 Jun 2024 30 Jun 2023 31 Dec 2023 Assets Goodwill 42 371 91 811 40 793 Intangibles assets 59 420 85 855 62 673 Deposits and other non-current assets 6 395 9 383 4 083 Total non-current assets 108 186 187 049 107 549 Trade and other receivables 21 291 28 116 18 50
Slide 27: Cash Flow
Cash Flow In EUR 1000 Q2 2024 Q2 2023 6M 2024 6M 2023 2023 Cash flow from operating activities 6 188 9 082 16 498 22 325 40 648 Cash flow from investing activities -4 879 -8 532 -20 366 -33 147 -58 420 Cash flow from financing activities 17 487 -3 635 9 976 3 271 25 632 Translation (loss)/gain -34 20 -
Slide 28: Largest shareholders: June 2024
Largest shareholders: 30 June 2024 GAMING INNOVATION GROUP INC. 1 11 088 711 8.24 % MJ Foundation 2 7 197 500 5.35 % Myrlid AS 3 6 069 375 4.51 % ZJ Foundation 4 5 830 425 4.33 % MJ Investments sp 5 5 505 587 4.09 % Nordea Livsförsäkring Sverige AB 6 5 500 000 4.09 % Optimus Invest Limited 7 5 044 2
Slide 29: 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
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