Interim report for the period 1 January – 30 September 2017
Strong earnings growth, successful refinancing and additional acquisition
- Revenue amounted to SEK 40,190 (4,873) thousand, an increase of 725%.
- Operating profit before depreciation (EBITDA) was SEK 25,607 (-557) thousand.
- Adjusted EBITDA before non-recurring items was SEK 25,831 (-557) thousand.
- Operating profit (EBIT) was SEK 25,349 (-705) thousand.
Period 1 January - 30 September 2017
- Revenue amounted to SEK 123,829 (13,733) thousand, an increase of 802%.
- Operating profit before depreciation (EBITDA) was SEK 76,592 (-1,639) thousand.
- Adjusted EBITDA before non-recurring items was SEK 76,816 (-557) thousand.
- Operating profit (EBIT) was SEK 75,834 (-2,065) thousand.
It has been a particularly eventful third quarter. Revenue amounted to SEK 40.2 million, with an adjusted EBITDA of SEK 25.8 million. Operations have developed well, with Highlight Media showing organic growth of 15% in the third quarter compared with the same period the previous year. Organic EBITDA growth was 22%.
Casino is our most important vertical, accounting for 80% of our revenue, and has shown FTD development with strong organic growth of 46%.
Our revenue from the USA increased by 150%. Through our affiliate licence in the United States, we see good, sustainable growth potential in this large market.
We have seen certain challenges within the poker segment and have launched a number of improvement measures.
We have also further streamlined our organisation so that more products can be launched at an increasing rate. Among other things, we have established a dedicated New Initiatives department to enable us to focus on new ideas, initiatives and product launches that will generate new revenue for the business in both the short and long term.
The other single most important event was Net Gaming’s successful refinancing arrangement, which will mean significantly lower interest expenses in the future.
After the end of the quarter, Net Gaming also acquired affiliate assets, mainly in Sweden and the UK. This is a business that is showing strong growth and driving a large part of its traffic through Paid Media. The acquisition will generate further growth for our existing operations. We see the Nordic region as an attractive growth market in which we can grow in the future, as the region currently represents just 4% of our revenue.
We are continuing to work on our charted growth plan, and our acquisition announced today means that we will also gain additional traffic channels through which to grow. We are also still looking at the possibilities of making further acquisitions.
Marcus Teilman, President and CEO