Acroud publishes interim report Apr-Jun 2021: Sequential growth and strong operational cash flow

Second Quarter 2021

• Revenue amounted to EUR 6 200 (3 567) thousand, corresponding to a growth of 74% (2%) and an organic growth of -25% (2%).
• EBITDA amounted to EUR 1 159 (1 499) thousand. Adjusted EBITDA (before items affecting comparability related to acquisitions, reorganization and new share issues) was EUR 1 500 (2 058) thousand.
• Profit after tax was EUR -267 (-1 144) thousand. Adjusted profit after tax (before items affecting comparability and currency effects) was EUR 292 (1 297) thousand.
• Earnings per share after dilution amounted to EUR -0.002 (-0.015). Adjusted earnings per share (before items affecting comparability and currency effects) was EUR 0.002 (0.017).
• New Depositing Customers (NDC) amounted to 29 448 (10 079) increasing by 192% (8%).
• Cash flow from operating activities amounted to EUR 1 965 (2 442) thousand.

First six months 2021

• Revenue amounted to EUR 11 780 (6 757) thousand, corresponding to a growth of 74% (-11%) and an organic growth of -18% (-11%).
• EBITDA amounted to EUR 2 599 (3 239) thousand. Adjusted EBITDA (before items affecting comparability related to acquisitions, reorganization and new share issues) was EUR 3 074 (3 798) thousand.
• Profit after tax was EUR 480 (1 614) thousand. Adjusted profit after tax (before items affecting comparability and currency effects) was EUR 844 (2 736) thousand.
• Earnings per share after dilution amounted to EUR 0.004 (0.021). Adjusted earnings per share (before items affecting comparability and currency effects) was EUR 0.007 (0.036).
• New Depositing Customers (NDC) amounted to 61,235 (19,701) increasing by 211% (-5%).
• Cash flow from operating activities excluding one-off tax payment relating to acquisitions amounted to EUR 2 353 (4 067) thousand

Significant events during the quarter

• In April, Acroud strengthened the position within Streaming and SaaS in Sports Betting and Poker through the acquisition of TheGamblingCabin (TGC). TGC was acquired for a purchase price of SEK 47 million, on a cash and debt-free basis. The purchase price was paid in cash and with newly issued shares in Acroud. The transaction was based on Acroud’s signed letter of intent published in a press release on 17 February 2021. TGC generated annual sales of EUR 1.4 million, based on the 9-month period Q320– Q121, with an EBITDA margin of approximately 65 percent resulting in annual EBITDA of approximately EUR 0.9 million.
• In May, Jonas Strömberg from Erik Selin Aktiehandel AB and Maria Grimaldi Andersson were elected as new board members of Acroud. Fredrik Rüden and Jonas Bertilsson renounced re-election.
• In June 2021 Acroud further broadened the product offering within Sports Betting in connection with the EURO Cup via the launch of BetFootball.com. BetFootball.com has new prediction tool features and is mainly focused on Europe and UK, complementing Acroud´s other brands such as SportsBettingGuide.com which is more focused on the US market.

CEO-comment: Sequential growth and strong operational cash flow

Despite a generally weaker quarter on account of seasonal variations, it is positive that we have managed to increase sales by 11% sequentially compared with the first quarter to EUR 6,200k. We also have strong operational cash flow of EUR 1,965k. In the second quarter, we actively decided to invest in new growth initiatives for the future at the expense of short-term profitability, with an adjusted EBITDA of EUR 1,500k. It would be wrong to say that we are satisfied. Change management work continues apace, but the EBITDA from this is developing more slowly than we want. There are several factors behind this, but my basic message is that we can do better, and we will do better.

Step by step, Acroud is moving from being a traditional player with comparison sites to having a product mix comprising more complex solutions with high entry barriers and high- quality content. The acquisition of TheGamblingCabin (TGC) in April was an important milestone during the quarter and the company fits well into Acroud’s operations

Integration and continued strong NDC growth

The second quarter was mainly focused on integrating acquired assets and continuing our long-term focus, with increased investments in our future, which can be seen in the 192% increase in our NDCs (New Depositing Customers) compared with the previous year. This is one of the most important KPIs and earnings were very strong in the first six months of the year, to a large extent as a result of the acquisitions made and the synergies they entail.

Our new As a Service segment is growing strongly and was our biggest segment in the second quarter when the integrations were implemented. Through acquisitions we are positioning ourselves as the Media House of the Future, supplementing our previous traditional affiliate sites with more advanced software solutions and SaaS and BaaS solutions.

Preparing for growth in iGaming Affiliation and …As a Service

The iGaming Affiliation segment is our core business. The development of the segment has been challenging in recent years and it has been affected by market conditions and regulatory measures in several countries. We have now dealt with most of the regulatory effects and can operate on more stable, more predictable markets from now on.

An important area in our iGaming Affiliation core segment is our SEO strategy, as our sites are increasingly ranked higher with the correct keywords in strategically selected markets and search engines. We can see the effects in our underlying KPIs from the end of the quarter and will be able to benefit from this in the second half of the year.

We have also been focusing on preparing for the opening of the Dutch market in October 2021. We are ready for significant growth in the future. We have also upgraded our most important sites, such as CasinoSpielen and CasinoGuide, which are positioned towards selected markets in the EU. In addition, we have brought forward our focus on emerging markets with the CT10 brand and strengthened our Sports Betting vertical by launching SportsBettingGuide.com and BetFootball.com.

In summary, we are well positioned for the opening of the Dutch market in October where we have a long history and wide experience. The preparations are in full swing and the last pieces of the puzzle will fall into place in the third quarter, allowing us to capitalise on our iGaming assets.

The future belongs to high quality content and software-solutions

In a short time, we have developed Acroud from only operating iGaming Affiliation sites to also offering SaaS solutions, BaaS solutions and high-quality media content such as streaming, Twitch, YouTube and land-based live events.

In the future, the use of software-based tools and AI will increase continuously, which is in line with our greater focus on our As a Service business. Within our SaaS business we launched Voonix in the VPN vertical after the quarter and we expect to launch Voonix for two additional verticals before the year-end. In addition, we will make our in-house developed platform (CAS) available to external affiliates as part of our SaaS product offering. This will provide affiliates with a full backend software suite for them to realise their vision. We expect to make this available in early 2022.

Our most recent acquisition, TheGamblingCabin, is a fast-growing player in streaming and software solutions for the media and affiliation industry. TGC’s ‘reduction tool’ is advanced software and the company’s digital presence is impressive. The tool will be launched worldwide and expansion will begin in the second half of 2021 after our first land-based event (The Festival Series) in September.

In summary, we can look back on a very intensive second quarter in which we continued to invest actively in our future and achieved sequential growth and strong operational cash flow. I look to the future with confidence as we have reached some important milestones and can see strong development in the underlying KPIs. I look forward to the second half of the year with great optimism.

Robert Andersson Malta, 12 August 2021

On Thursday 12th Aug at 08:00 a.m. CET Acroud's interim report for the second quarter of 2021, will be published. At 10:00 a.m. the same day a presentation of Acroud's interim report for the second quarter of 2021, will be presented.

CEO Robert Andersson and CFO Gustav Vadenbring will present the report, followed by a Q&A session. The presentation will be held in English and will be webcasted live through www.acroud.com or via https://tv.streamfabriken.com/acroud-q2-2021

The join the conference via phone, please dial-in using any of the numbers below:

From Sweden: +46856642695
From UK: +443333009270
From the US: +16467224903

The webcast and the presentation slides will be published on www.acroud.com after the webcast, where you also can view and listen to the webcast on demand.

Responsible parties

This information constitutes inside information that Acroud AB (publ) is required to disclose under the EU Market Abuse Regulation 596/2014. The information in this press release has been published through the agency of the contact persons below, at the time specified by Acroud AB’s (publ) news distributor Cision for publication of this press release. The persons below may also be contacted for further information.

For further information, please contact:

Robert Andersson, President and CEO
+356 9999 8017

Gustav Vadenbring, CFO
+356 9967 6001

ACROUD AB (publ)
Telephone:     +356 2132 3750/1
E-mail:           info@acroud.com
Website:        www.acroud.com
   

From August 2021 (Q221 Report) report Acroud has changed reporting and company language to English. This means that onwards press releases will only be communicated in English. Interim Reports and the correlated press releases will still be issued in both English and Swedish, however the English version will supersede the Swedish version.

About ACROUD AB
ACROUD is a fast-growing global challenger that operates and develops +30 comparison and news sites within Poker, Sports Betting and Casino. In 2021, Acroud launched The Festival Series which is a competitive Sports Betting, Casino and Poker Experience taking place in different destinations in Europe. Acroud also offers SaaS (Software as a Service) and BaaS (Business as a Service) solutions for the iGaming affiliate industry. In 2020 and 2021, a number of companies have joined the ride and thus several experienced individuals in the industry leads Acroud's journey to become "The Mediahouse of The Future". Our mission is to connect people, Content Creators (Youtubers, Streamers, Affiliates) and businesses. We are growing fast and is a leading global player in the industry with just over 90 people in Malta, Denmark and Sweden. Acroud has been listed on the Nasdaq First North Growth Market since June 2018.