Net Gaming issues new financial objectives
Following recent acquisitions and the refinancing arranged in autumn 2017, the Management and Board of Net Gaming have conducted a strategic review and adopted an updated strategy. As a result, the Company is issuing new financial targets.
Net Gaming sees significant opportunities to grow its business in the next few years, both organically and through acquisitions. To take advantage of the growth opportunities that the Company sees, the growth strategy been reviewed and new financial targets have been produced.
“Net Gaming has changed considerably over the last 1.5 years and we now have a strong operational platform with strong brands. With a data-driven working method, supported by strong technical expertise and business intelligence, we have very good conditions for continuing rapid organic growth in the future. Through our refinancing, we can also grow actively through acquisitions, as we have shown recently,” says Marcus Teilman, President and CEO of Net Gaming.
To grow faster organically than comparable players and to grow actively through acquisitions.
To maintain a net debt to EBITDA ratio of below 3.0.
To prioritise acquisitive growth, internal growth projects and capital structure above dividends during the next three years.
- To own and develop strong brands and comparison sites in iGaming. These must be innovative, independent and transparent. They must have clear user value in order to increase the proportion of returning users.
- To continue to grow organically in selected focus markets.
- To acquire in situations where the Company believes that Net Gaming can create value.
- To work in a data-driven way supported by strong technical expertise and business intelligence.
- To continue investing in our operational platform in order to achieve economies of scale.
- Vertical expansion. Sports betting will be launched as a new vertical in 2018. The vertical currently accounts for about 50 percent of the total iGaming market.
- Geographical expansion. Asia is the next market in the Company’s expansion.
- Expansion in existing markets. In selected markets in Europe and the Nordic region, there is great scope for Net Gaming to grow.
- Acquisitions. Net Gaming continuously looks at opportunities to make further acquisitions in the future. An additional acquisition was completed in 2017.
- Product innovation. The Company is constantly launching new products in existing markets and verticals, and enters 2018 with a clear path forward.
- Technology innovation. Net Gaming works consistently to improve and refine the offering to users. The Company has an “mobile first” approach and closely monitors how users behave and respond to the offering.
- Transformation from offline to online. Online gaming (iGaming) currently accounts for 10.7 percent, which corresponds to approximately SEK 400 billion per year. Approximately SEK 160 billion of this is generated through affiliates, in other words comparison sites.
- Comparison trend. With the opportunities offered by digitalisation and the Internet, consumers are increasingly likely to be able to and to want to compare different options before making decisions. This trend is beneficial to Net Gaming.
For further information, please contact:
Marcus Teilman, President and CEO
+356 9936 7352
Net Gaming Europe AB (publ)
Telephone: +46 8-410 380 44
The information in this press release is information that Net Gaming Europe AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation and, where applicable, the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was provided by the contact person above for publication on 22 February 2018 at 08.15 CET.
About Net Gaming
Net Gaming owns, operates and develops high-quality online comparison sites for the purpose of channelling user traffic to the Company’s customers – primarily iGaming operators. Within the Group, approximately 130 comparison sites are operated in 30 countries. Net Gaming generates valuable user traffic through the sites, mainly to global iGaming operators. The Company was founded in 2005, has over 80 employees and is headquartered in Malta. The share (NETG) is listed on AktieTorget.