Interim report for the first quarter 2017: Strong start to the year creates good conditions for the future
Interim report for the period 1 January – 31 March 2017
All amounts in the report relate to the Group and are stated in SEK thousands unless otherwise indicated. Figures in brackets refer to the corresponding period in the previous year.
- Revenue amounted to SEK 40,964 (4,048) thousand, an increase of 912%.
- Operating profit before depreciation (EBITDA) was SEK 25,042 (-584) thousand.
- Operating profit (EBIT) was SEK 24,797 (-721) thousand.
Significant events after the first quarter
- SEK 8,999,995.50 of the convertible debenture has been converted into 1,999,999 new shares.
- Strong start to Q2, with revenue significantly above the normal seasonality.
2017 has begun in the best possible way, with continuing strong growth and good profitability. Our Q1 revenue amounted to SEK 41 million, an increase of 912% compared with the same period the previous year, while EBITDA amounted to SEK 25 million in the first quarter of 2017, which was a significant increase from the same period the previous year. The operating margin also increased to 61%.
Since the acquisition of Highlight Media was finalised, we have been working hard to systematically improve ourselves at all levels of the organisation. The initiatives we have implemented this year have produced direct effects in virtually all markets. We have seen an improvement in our search engine rankings for selected high-value keywords. This has meant that we have also seen an increase in incoming traffic to our sites and consequently an increase in leads (traffic from our sites to the iGaming operators). The impact on revenue normally comes a little later.
There has been a clearly positive start to the second quarter. Revenue and operating profit have been in line with the first quarter, even though the second quarter is normally the weakest quarter in the year due to seasonal variations. In terms of the increase in leads in April, the underlying trend is even more distinct. This means that I feel very confident in our ability to deliver full-year results for 2017 that will show continuing strong earnings growth.
We have good momentum in our daily machinery, we have a charted path for 2017 and I will continue to work on our clear growth strategy. In more concrete terms, this also means that we want to continue to play an active role in the consolidation taking place in the market. There is no doubt that we have interesting times ahead of us!
Marcus Teilman, President and CEO