Gaming Innovation Group

Transcription

1 Gaming Innovation Group Company presentation 24 September 2016 Robin Reed, CEO

2 Vision To make igaming an open and connected ecosystem, for the benefit of all By operating and investing into gambling solutions and entertainment providers. The group provide three bespoke revenue models; cutting-edge Cloud based Services, B2B Performance marketing, and B2C gambling operators offering games from the best-of-breed supplier across the online sports betting and casino industry. 2

3 A leading igaming and technology company GIG has grown significantly and reached a strong market position through innovation in technology; B2C Gaming Operators - Top 5 Nordic operator Affiliate - Top 3 Nordic igaming Cloud Technology connecting the igaming industry Strong growth trajectory, outpacing overall market Well positioned to capture new expansion opportunities Strong balance sheet and earnings-growth secure further expansion 3

4 4 Developing through strong business models

5 Strategy Explained Innovation lies at the intersection of each gaming activity By owning the value chain we improve margins and decrease price points By selling B2B we scale 5

6 6 Making igaming an open and connected Ecosystem for the benefit of all

7 Strong underlying market growth EUR billion Source: H2 Gambling Capital Global Gaming Data (10 August 2016) 7

8 GIG outperforming the overall market EUR million Q Q Q Q Q GIG revenues BetIt revenues 8

9 Well positioned to capture new expansion opportunities Initial focus on the Northern European market Expanded to new Regulatory fragmentation creates market opportunities Several countries close to regulations igc has acquired a number of licenses and certifications reducing the threshold to enter and operate in regulated markets for operators. Regulated markets Unregulated markets 9

10 BetIt acquisition: Creating a leading Nordic igaming operator About BetIt Q annualised run-rate of EUR 36 million Technology oriented operator renown for product and design Highly competent staff of 100+ people Strategic synergies Greatly enhancing GIG s geographical footprint in the UK Powerful technological synergies Enhancing GIG s reach to users, marketing partners and highly competent staff Financial synergies Increased share of wallet, ARPU and CLTV of end-users Volume discounts, better supplier rates and improved staff to revenues ratio, mid and long-term 10

11 Top 3 affiliate in the Nordics Controlling an increasing part of paying users traffic *FTD s: Q2 2016: July 2016: August 2016: FTD s increasing with 142% Q/Q Acquisitions increased number of FTD s referred to operators by more than 100% on a monthly basis Number of First Time Depositors 12,000 10,000 8,000 6,000 4,000 2,000 0 Q Q Q Q Q Internal/iGC brands External brands *FTD s: First Time Depositors 11

12 Connecting the igaming industry Compounded expected annual contribution in EUR million 9 8 Providing state of the art operations for igaming Apr. 15 May. 15 Jun. 15 Jul. 15 Aug. 15 Sep. 15 Oct. 15 Nov. 15 Dec. 15 Jan. 16 Feb. 16 Mar. 16 Apr. 16 May. 16 Jun. 16 YTD 18 clients live on the platform Jul. 16 Aug. 16 Sep. 16 Exceeded goal of signing 20 clients this year Recruited 100 people in a year to cope with demand and develop the platform Signed agreements 12

13 Q2 highlights - strong financial position provides basis for further growth Revenues and marketing EUR million Financial position EUR ,000 50,000 Strong revenue and earnings growth All time high revenues of EUR 9.7 million in Q % 40% 42% 37% 29% Q Q Q Q Q ,000 30,000 20,000 10,000 0 Non-current assets Current assets Cash Assets Equity Non-current liabilities Current liabilities Equity and liabilities Positive EBITDA of EUR 1.0 million in Q2 Equity ratio of 79% Cash covering upcoming obligations Revenues Marketing in % of revenues GIG financial figures only (excluded BetIT) 13

14 Summary & outlook Continue to interconnect the industry. Selectively evaluate further acquisition opportunities Strong growth trajectory 14

15 15 Q&A

16 Next event: 3rd quarter 2016 presentation 02 November

17 Appendix

18 Largest shareholders as of 23 September 2016 Shareholder # shares % Optimizer Invest Ltd % Bryggen Holding AS % Super Innovative Limited (Robin Reed) % J.P. Morgan Chase Bank % Hans Michael Hansen % Frode Fagerli % DNB Luxembourg nom % GIG Share Options Ltd % Anders Berntsen % CMM Invest AS % Nordnet Bank AB % Flaxvatn Holding AS % G.F. Invest AS % Svenska Handelsbanken % Avanza Bank AB % Jussi Hietalahti % Mikko Halmela % Nordea Bank AB % Nordea Bank Danmark S/A % Skabo Offshore AS % Other % Total issued shares % 18

19 Income statement Condensed Statements of Operations in 1000 EUROS (Unaudited) Q Q M M Revenues Cost of sales Gross profit Gross profit margin 85% 75% 84% 72% 77% Marketing expenses Other operating expenses Total operating expenses EBITDA Depreciation & amortization EBIT Other income (expenses) Results before income taxes Marketing in % of revenue: 37% 29% 39% 31% 43% Other operating in % of revenue: 38% 44% 40% 41% 46% EBITDA in % of revenue: 10% 2% 5% 0% -12% 19

20 Cash flow In EUR Q Q M M Cash flow from operating activities Cash flow from investment activities Cash flow from financing activities Translation loss Net change in cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents at end of period

21 Balance sheet Condensed Balance Sheet in 1000 EUROS (Unaudited Q Q Assets Goodwill Intangibles and other non-current assets Total non-current assets Other current assets Cash and cash equivalents Total current assets Total assets Liabilities and shareholders' equity Total shareholders' equity Short term loans Other current liabilities Total current liabilities Long term loans Total liabilities Total liabilities and shareholders' equity

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