Gentoo Media Inc · OMXSTO:G2M
Gentoo Media — Q3 2018 Earnings Presentation
30 slides from Gentoo Media's earnings presentation, 2018
Slide 1: Q3 2018
Q3 2018
Slide 2: Today's Presenter
TODAY’S PRESENTER “Opening up iGaming, to make it Robin Reed fair and fun for all” CEO 2
Slide 3: Outline
OUTLINE • Overview • Highlights • Strategic & Business Update • Summary & Outlook • Q/A 3
Slide 4: Overview
OVERVIEW • Technology company providing products, services and solutions across the entire iGaming value chain • Founded in 2012 • ~740 GiGsters looking to disrupt the iGaming industry • HQ in Malta, offices in Denmark, Norway, Spain, Gibraltar and the US • Listed on Oslo Stock Exchange with the tic
Slide 5: Digital Transformation from Offline to Online
DIGITAL TRANSFORMATION FROM OFFLINE TO ONLINE EUR bn 5
Slide 6: The Digital Gambling Lifecycle
THE DIGITAL GAMBLING LIFECYLE GiG accelerates operators from brick and mortar excellence to digital stardom Our goal is to is to pursue digital perfection and leadership, supporting our customers growing their business through a partnership model
Slide 7: The GiG Ecosystem
THE GIG ECOSYSTEM A full service offering for any company serious about its iGaming business Sports Betting Platform Gaming Media Services & Games Services Operators Services B2B B2B B2B B2C Revenue share & fixed fees Revenue share & fixed fees Revenue share & fixed fees Bets minus Wins Finding lead
Slide 8: We are becoming the one stop shop for iGaming
“We are becoming the one stop shop for every company serious about its iGaming Business”
Slide 9: Q3 Highlights
Q3 HIGHLIGHTS • Gaming Operators: strategic measures led to positive EBITDA • Strong start in New Jersey with Hard Rock • First external Sportsbook agreement signed with 11.lv • First external contract for GiG Comply signed with Mr Green 9
Slide 10: Events After Q3
EVENTS AFTER Q3 • Hard Rock signed a letter of intent for omni-channel Sportsbook solution • GiG Games launched its first game and signed with game studio Jade Rabbit and reseller Join Games • Sportsbook agreement signed with MetalCasino • Thrills relaunched as a ‘Pay N Play’ brand 10
Slide 11: Continued Stable and Positive Development
CONTINUED STABLE AND POSITIVE DEVELOPMENT 12 months rolling revenues 12 months rolling EBITDA EUR million 151 EUR million 18.9 145 17.2 16.9 135 120 102 12.5 86 69 8.4 54 6.5 5.8 5.5 38 0.2 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 11
Slide 12: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS €37.3m €6.3m €10.6m €15.3m €5.0m Revenues Cost of sales Marketing Other opex EBITDA + 21% Y/Y + 28% Y/Y - 11% Y/Y + 40% Y/Y + 66% Y/Y 12
Slide 13: Strategic Update
Strategic Update GiG
Slide 14: B2B Update
B2B UPDATE • GiG offering a full turnkey gambling solution for the whole iGaming value chain • GiG offering omni-channel solution (retail and online) • GiG Games launched its first in-house developed game • GiG granted permission to offer its sports and games services under the B2B licence to UK ope
Slide 15: B2C Update
B2C UPDATE Strategic review of the Gaming Operator vertical resulted in: • Positive EBITDA of €1.4m compared to a loss of €2.8m in Q2 2018 • Lower marketing cost to revenues of 42% (57%), goal around 40% • Tim Parker (previously MD of Rizk) promoted to Chief Marketing Officer of GiG 15
Slide 16: Hard Rock
HARD ROCK Letter of intent signed for omni-channel Sportsbook, retail and online Expecting to go live in Q4 2018 Positive start in Casino since launch 16
Slide 17: Business Update
Business Update GiG
Slide 18: Media Services (B2B)
MEDIA SERVICES (B2B) EUR million 8.7 • Revenues increased by 33% 8.5 8.2 8.4 compared to Q3 2017 with 11% organic growth 6.3 • 29,288 (29,029) FTD’s referred in Q3 5.2 4.5 4.4 4.7 4.3 2018 • 12% of FTD’s referred to operators in GiG’s ecosystem • 72% of revenues from revenue share agreements, 13% fr
Slide 19: Platform Services (B2B)
PLATFORM SERVICES (B2B) EUR million 9.6 • Total database transactions increased by EUR 2m one-off settlement fee 50% to 4.8 (3.2) bn compared to Q3 2017 6.6 6.8 6.8 6.3 • Revenues increased by 33% compared 5.1 to Q3 2017, with 86% from external operators • First external poker agreement signed 2.0 1
Slide 20: Sports Betting Services (B2B)
SPORTS BETTING SERVICES (B2B) EUR million 0.6 • Successful launch of new 0.2 0.2 0.2 sportsbook with Rizk.com -0.1 • Sold to external B2B operators, together with a letter on intent with Hard Rock -1.2 -1.4 -1.6 -1.7 • Negative impact from trading, -2.1 these activities have ceased Q3 17 Q4 17 Q1 18
Slide 21: Gaming Operators (B2C)
GAMING OPERATORS (B2C) • Revenues increased by 11% from Q3 17 EUR million 25.4 25.4 • Marketing costs was 42% of GIG 24.2 24.4 21.9 Gaming revenue, compared to 54% in Q2 18 • Active real money players increased to 190,875 (169,791), gross deposits increased by 18% 1.4 • 95% of revenues generated fro
Slide 22: Summary
SUMMARY • Investments in building an ecosystem of iGaming products and solutions covering the whole iGaming value chain continued in Q3, with all products and solutions live and sold externally • Strong EBITDA development of 66% compared to Q3 2017 • New Sportsbook sold to external operators and a l
Slide 23: Outlook
OUTLOOK • Ready to leverage on our complete ecosystem and key strengths driving revenue and market share for our partners • Attracting new customers converting from offline to online • Geographical expansion focusing on regulated and soon-to-be regulated markets • Guidance update for the full year 2
Slide 24: Listing at NASDAQ Stockholm planned for Q1 2019
Listing at NASDAQ Stockholm (main list) planned for Q1 2019 pending market conditions
Slide 25: QIA
QIA GiG
Slide 26: Appendix
Appendix GiG
Slide 27: Largest Shareholders
LARGEST SHAREHOLDERS Shareholder # shares % Bryggen Holding AS 118 178 394 13.2 % Optimizer Invest Ltd. 103 373 297 11.5 % Swedbank Robur Ny Teknik 83 000 000 9.3 % Super Innovative Limited 64 464 272 7.2 % Hans Michael Hansen 43 604 272 4.9 % Frode Fagerli 36 032 671 4.0 % Avanza Bank AB nom. 23 87
Slide 28: Income Statement
INCOME STATEMENT Condensed Statements of Operations in EUR 1 000 (Unaudited) Q3 2018 Q3 2017 9M 2018 9M 2017 2017 Revenues 37 283 30 841 111 507 80 494 120 423 Cost of sales 6 348 4 959 19 562 14 005 20 521 Gross profit 30 935 25 882 91 945 66 489 99 902 Gross profit margin 83% 84% 82% 83% 83% Marke
Slide 29: Cash Flow
CASH FLOW In EUR 1 000 Q3 2018 Q3 2017 9M 2018 9M 2017 2017 Cash flow from operating activities 422 2 203 10 680 11 420 13 046 Cash flow from investment activities -2 618 -26 428 -9 176 -50 894 -67 616 Cash flow from financing activities - 24 671 - 59 619 61 904 Translation loss 48 110 290 -1 725 -2
Slide 30: Balance Sheet
BALANCE SHEET Condensed Balance Sheet in EUR 1 000 (Unaudited) 30 September 2018 30 September 2017 31 December 2017 Assets Goodwill 69 681 69 186 69 444 Intangibles assets 85 580 93 927 91 997 Deposits and other non-current assets 8 385 6 165 7 179 Total non-current assets 163 646 169 278 168 620 Pr