Azerion Group N.v · EURONEXT:AZRN
Azerion — Q2 2020 Earnings Presentation
19 slides from Azerion's earnings presentation, September 2020
Slide 1: Azerion Q2 Update
Azerion Q2 Update September 2020
Slide 2: Azerion's Leadership
AZERION’S LEADERSHIP HIGHLY EXPERIENCED MANAGEMENT TEAM WITH FOUNDERS STILL ACTIVE IN THE GROUP Atilla Aytekin Presenting today Umut Akpinar Group CEO & Co-founder, Chairman of the Board Group CEO & Co-founder, Chairman of the Board • Serial entrepreneur for more than 20 years • Serial entrepreneur
Slide 3: Azerion at a Glance
AZERION AT A GLANCE A LEADING GLOBAL GAMING AND MONETIZATION TECHNOLOGY COMPANY Gaming and Monetization Company Strong Owned and 3rd Party Casual Gaming IP’s GLOBAL GAMING 15 OFFICES 400M GAMEPLAYS (+10%) +850 EMPLOYEES (-11%) +80M MAU Owned Monetization Technology/Infrastructure Stellar Growth and
Slide 4: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS Q2 2020 vs Q2 2019 REVENUE EBITDA ARPDAU eCPM +12% +71% +13% -56% €43.9m to €49.2m €4.4m to €7.5m €0.032 to €0.036 €1.37 to €0.60 PRODUCT LAUNCHES COVID IMPACT 4
Slide 5: Covid-19 Update
1-Jan 1-Jan 16-Jan 16-Jan 31-Jan 31-Jan GAMING Gameplays 15-Feb 15-Feb 1-Mar 1-Mar Avg. time in game 16-Mar 16-Mar 31-Mar 31-Mar 15-Apr 15-Apr COVID-19 UPDATE 30-Apr 30-Apr 15-May 15-May Pre-Covid average 30-May 30-May 14-Jun 14-Jun 29-Jun 29-Jun 1-Jan 1-Jan 16-Jan 16-Jan eCPM 31-Jan 31-Jan 15-Feb 1
Slide 6: Azerion: A Global Gaming and Monetization Company
AZERION A GLOBAL GAMING AND MONETIZATION COMPANY 44% 14% E 22% NA 73% A 14% 2% 3% A 15% HQ (Amsterdam) 1% OFFICES SA 2% GAMES TRAFFIC (Gameplays) O 9% 1% ADTECH TRAFFIC (AdImpression) 6
Slide 7: Stellar & Profitable Financial Growth
STELLAR & PROFITABLE FINANCIAL GROWTH 194.2 182.1 20.6 17.1 126.9 7.5 23.1 3.1 9.9 1.2 1.5 7.1 2015 2016 2017 2018 2019 LTM Q22020 2015 2016 2017 2018 2019 LTM Q22020 Net Revenue (EURm) Adjusted EBITDA (EURm) 7
Slide 8: Stellar & Profitable Financial Growth Q-Comparison
STELLAR & PROFITABLE FINANCIAL GROWTH Q- COMPARISON 35% 25% 20% 20% 49.2 40.4 Q1 Q2 Q3 Q4 Average organic seasonality 2015-2019 29.5 2015 48.0 49.2 2016 2017 2018 7.9 2019 1.7 2.4 2020 Q1 Q2 Q3 Q4 8 Revenue per quarter 2015-2019 in mEUR Year-over-year revenue per quarter 2015-2019
Slide 9: Q2 Key Business Highlights
Q2 KEY BUSINESS HIGHLIGHTS GAMING MONETIZATION TECH KEY PARTNERSHIPS MONOPOLY POKER AUTOMATED BILLING FEATURE MARS MEDIA TROLL FACE QUEST USER PRIVACY ENHANCEMENTS ITALIA ONLINE CONTINUED NEW GAME FEATURES COLLECTIVE INTEGRATION ADFORM SPIL GAMES INTEGRATION 9
Slide 10: Azerion Financials
AZERION FINANCIALS 10
Slide 11: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS Revenue growth +12.3% (or EUR 5.3m) Adjusted EBITDA @ EUR 7.5m up EUR 3.1m (15.1% margin) Successful cost control program enhanced resilience towards Covid-19 Cash improvement by EUR 3.0m despite Covid-19 11
Slide 12: Q2 Net Revenue
Q2 NET REVENUE Q2 Net revenue development Q2 Net revenue split EURm 49.2 34% 66% 43.9 Q2 2019 21.5 Gaming Monetization Tech (26%) 29.2 27.7 44% 56% 14.7 +89% Q2 2020 Q2 2019 Q2 2020 Gaming Monetization Tech Gaming Monetization Tech 12
Slide 13: Q2 Adjusted EBITDA and P&L Ratios
Q2 ADJUSTED EBITDA AND P&L RATIOS Q2 Adjusted EBITDA development Q2 P&L ratio development EURm Gross margin % Change 4.4 7.5 +110bps +3.1 2.2 37.6% 38.7% Q2 2019 Q2 2020 2.5 7.0 Opex/ Revenue % +4.5 -260bps 29.6% 27.0% 1.9 0.5 -1.4 Q2 2019 Q2 2020 Adj. EBITDA margin % +510bps Q2 2019 Q2 2020 10.0% 1
Slide 14: Q2 Cash Flow
Q2 CASH FLOW Q2 2020 cash flow development EURm Operating CF EUR 1.4m Financing CF EUR 2.0m (1.0) 2.9 (0.4) 5.0 (4.4) 2.9 (2.0) 12.6 9.6 Cash ending EBIT Change in Other op. CF Investing CF Debt Loan Interest Cash Ending Q1 20 NWC repayments installment payments Q2 20 receipt 14
Slide 15: Q2 Balance Sheet
Q2 BALANCE SHEET Q2 Balance sheet Assets (EURm) Equity & Liabilities (EURm) 12.6 109.7 68.9 185.3 21.1 185.3 4.5 68.0 78.1 3.1 4.4 Intangible Tangible Financial Current Cash Total Total Provisions Non-current Current Total fixed fixed fixed assets assets protective liabilities liabilities liabilitie
Slide 16: Outlook FY-2020
OUTLOOK FY-2020
Slide 17: Outlook for Remainder of 2020
OUTLOOK FOR REMAINDER OF 2020 Covid-19 Impact on revenue, EBITDA and organization Seasonality Q3 generally lower activity quarter (summer, less screen time) Gaming Expect normalized volumes and engagement Monetization Further Covid-19 recovery momentum into H2 (see next slide) FY 2020 Adj. EBITDA: E
Slide 18: Monetization Tech Recovery Momentum Continues
MONETIZATION TECH RECOVERY MOMENTUM CONTINUES Improve Digital daily revenue 2019 Pre-Covid average 2020 1-Jan 16-Mar 31-Mar 15-May 30-May 13-Aug 28-Aug 15-Apr 30-Apr 14-Jun 29-Jun 14-Jul 29-Jul 15-Feb 1-Mar 16-Jan 31-Jan 18
Slide 19: Thank You
W azerion THANK YOU