Global Gaming 555 AB – Half-year report – January-June 2020
"Global Gaming is back to profitability!"
Second Quarter, April - June 2020
- Revenue for the quarter amounted to SEK 71.8 (132.2) million.
- Operating profit was SEK 1.1 (-11.1) million.
- Profit after tax for the quarter was SEK 1.0 (-11.8) million, or SEK 0.03 (-0.29) per share.
- Cash flow from operations for the quarter amounted to SEK 9.1 (-9.6) million.
- Global Gaming continues the process to adapt the organisation and the expenses and reports a profit for the quarter.
Half-year, January - June 2020
- Revenue for the period amounted to SEK 129.7 (294.3) million.
- Operating profit was 0.8 (-54.5) mkr.
- Profit after tax for the period was SEK 0.7 (-53.3) million, or SEK 0.02 (-1.30) per share.
- Cash flow from operations for the period amounted to SEK -5.1 (-50.8) million.
Other significant events during the quarter
- Petter Fagrell is appointed as new CEO in the Maltese subsidiaries.
- Global Gaming receives a new main shareholder when Enlabs AB on June 8th announced an acquisition of 29.9% in the company.
- In connection with the acquisition, demanded the main shareholder an Extra General Meeting to be held with the intention of proposing a new Board. The Extra General Meeting will be held on August 6.
Events after the end of the period
- Global Gaming divestment of rights concerning Nano Casino to Finnplay Group, for EUR 0.5 million.
CEO Message
"Now we are back to Profit again!"
The last 15 months have been the most difficult and challenging period I have experienced in my professional life. When I took over as CEO of Global Gaming, we were badly hurt and had just recalled our already decided proposal for share dividend to the owners. When we also lost our Swedish license in June last year, and with it 75 percent of our income, many thought that our days were numbered. Now we are back in profit again!
A year ago, we showed an ability to react quickly and forcefully in a very difficult situation. We have step by step delivered what we set out to do and constantly adapted and adjusted our operational activities. No part of the organization has remained unchanged; we have changed the technical platform, restructured the management, downsized the organization by two thirds which led to our cost base being completely different compared before.
At the same time, in the midst of everything, we have very concentrated and successfully run our remaining business. Revenues from our current markets have grown by 26 percent during the first six months of the year compared with the first half of last year and by 35 percent when comparing the second quarters of the two years. It is also gratifying to note that July's average income per day has been about 12 % higher than the average per day during the first six months of the year. It bodes well for the rest of the year.
We have been faithful to the strategy we agreed on and it is not without pride that I now state that we have exceeded our first sub-goal of being break-even during the first half of 2020. We make an operating profit during the second quarter of SEK 1.1 million. Adjusted for costs attributable to the restructuring we carried out during the quarter and adjusted for the period's negative currency effects, we achieve an operating profit of SEK 7.0 million during the second quarter.
Global Gaming is now ready to enter the next phase of the company's history. In the coming month, we will launch a comprehensive sports betting offer in our existing markets and brands, and in the third quarter we will complete what we previously communicated about launching in several new markets.
I am proud and happy about the very good work we have done during the past year and look forward with excitement and confidence to the future. Not least, I look forward to an in-depth dialogue with our new major owner, the Enlabs Group. Regardless of the outcome, it is my absolute opinion that the development holds great and interesting opportunities for both companies' shareholders and that the future of Global Gaming's offering and brands looks brighter than in a long time.
Thank you for the confidence,
Tobias Fagerlund
For further information, please contact
Tobias Fagerlund, CEO
+46 (0)704 15 05 85,
tobias.fagerlund@globalgaming.com
Niklas Jönsson, CFO
+46 (0)8 551 154 31,
niklas.jonsson@globalgaming.com
The information in this press release is such that Global Gaming 555 is required to disclose under the EU Directive of Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above on August 5, 2020 at 08:00 CET.
About Global Gaming
Global Gaming is a challenger in the iGaming industry, delivering innovative and safe gaming services and operating a number of successful casino brands. Its flagship, Ninja Casino, builds on the PayNPLay technology, allowing players to enjoy a safe and seamless online casino experience by simplifying and shortening the registration process. The company is listed on Nasdaq First North Growth Market in Stockholm. The company’s Certified Adviser is Redeye AB, with contact information, +46 (0) 8 121 576 90, certifiedadvisor@redeye.se.
The report is available for download here https://globalgaming.com/report/.