Year-end report 2016: Strong end to the year

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 the previous year.

Fourth quarter 

• Revenue amounted to SEK 35,204 (3,155) thousand, an increase of 1016%. 
• Adjusted operating profit/loss before depreciation and amortisation (adjusted EBITDA), excluding non-recurring items attributable to the acquisition of HLM, amounted to SEK 19,754 (-929) thousand. Non-recurring costs attributable to the HLM acquisition amounted to SEK 2,403 thousand.  
• Operating profit/loss was SEK 17,113 (-1,205) thousand.  

Full year 2016 

• Revenue amounted to SEK 48,937 (10,480) thousand, an increase of 367%. 
• Adjusted operating profit/loss before depreciation and amortisation (adjusted EBITDA), excluding non-recurring items attributable to the acquisition of HLM, amounted to SEK 18,114 (-4,214) thousand.  
• Operating profit/loss was SEK 15,047 (-4,844) thousand.  

Significant events in the fourth quarter 

• Net Gaming completed the acquisition of Highlight Media on 14 October 2016. HLM’s operations were consolidated into Net Gaming on 14 October 2016.
• The investment company Varenne has invested in Net Gaming.
• CEO Marcus Teilman has subscribed for 1 million options, with the right to subscribe for 1 million shares in Net Gaming.
• The Extraordinary General Meeting on 14 November 2016 adopted the proposed convertible loan.
• Jonas Bertilsson, Investment Manager at Varenne, was elected as a new Board member at the Extraordinary General Meeting on 14 November.
• Net Gaming listed its bond on First North Bond Market in December 2016.

CEO’s comments

“Strong end to the year creates good opportunities for the future”

Net Gaming’s business concept is to invest in fast-growing iGaming companies, primarily in lead generation. I am therefore very pleased that we have completed the acquisition of Highlight Media, which has brought a very positive contribution to the Group. 

It is also my pleasure to present a strong end to 2016. In the fourth quarter, we increased revenue by 1016% to SEK 35.2 million, while adjusted EBITDA, excluding costs associated with the acquisition of HLM, was SEK 19.8 (-0.9) million. Non-recurring costs associated with the acquisition of Highlight Media amounted to SEK 2.4 million. Operating profit/loss for the fourth quarter amounted to SEK 17.1 million. For the full year, we increased our revenue by 367% to SEK 48.9 million, while operating profit/loss increased to SEK 15.0 million. HLM’s operations and cash flow have been consolidated into Net Gaming with effect from 14 October 2016. 

It is very pleasing to note that we continue to grow steadily and faster than the market in general.  

Highlight was founded back in 2003 and has a proprietary Business Intelligence system, which will be further developed to optimise the knowledge and lessons we can draw from the enormous amount of data we hold throughout the Group 

We have fundamentally good operations, and have a strong market position in lead generation within iGaming, in a well run environment, an area where we want to take a market-leading position globally. The traffic we deliver to our customers (operators) is of high quality with a high value per lead, and we work systematically and methodically every day to continue the development. This is a key factor for our success in continuing to generate good organic growth. 

Highlight Media generated SEK 133.1 million in revenue for the full year 2016, with EBITDA of SEK 88.6 million.  

Our growth will be generated through geographic expansion, product expansion, acquisitions and in existing markets. We see good opportunities to pursue growth in all of these four areas. In 2017, we will, for example, be launching some new products and initiatives to continue gaining market shares. 

I look forward to continuing growth with good profitability and 2017 will undoubtedly be a very exciting year for Net Gaming!

Marcus Teilman, President and CEO