Evolution Gaming - As real as it gets...• Accelerate the combined company’s move into the US...
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Evolution Gaming Interim Report January-June 2020 17 July 2020 1 CEO, Martin Carlesund CFO, Jacob Kaplan
Transcript of Evolution Gaming - As real as it gets...• Accelerate the combined company’s move into the US...
Evolution Gaming Interim Report January-June 202017 July 2020
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CEO, Martin CarlesundCFO, Jacob Kaplan
HighlightsIn the quarter:• Revenue growth +50% to 128,3 MEUR (85,7)• EBITDA increase +90% to 81,1 MEUR (42,7)• EBITDA margin 63,2% (49,8)• EBIT increase +103% to 74,2 MEUR (36,6)
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• Continued high demand generates a positive effect on margin.• Evolution Gaming announces a recommended public offer to the shareholders of NetEnt.• Six new games have been launched during the second quarter, adding up to eight new games during 2020.
COVID-19
• Adjustments to operations in all studios has led to fewer tables operating
• Step-by-step re-opening of tables• Increased demand for our games as sports
were cancelled
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Public offer to the shareholders of NetEnt
• Drive the digitalisation of the global gaming industry.• Collaborations between world-class product development
resources. • Accelerate the combined company’s move into the US online
gaming market.• The combined product portfolio includes some of the world’s most
popular Live Casino and slots games • The combined product offering will provide significant upsides to
customers and player experience
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Continued strong increase in activity across network
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Bet spots
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2 000 000 000
4 000 000 000
6 000 000 000
8 000 000 000
10 000 000 000
12 000 000 000
14 000 000 000
18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2
Bet s
pots
Bet spots
YoY growth+113%
Increase in staff
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Full Time Equivalents (FTE)
3 2433 600
3 9704 319
4 671
5 120 5 2735 554
5 865
4 051
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1 000
2 000
3 000
4 000
5 000
6 000
7 000
18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2
FTE
FTE, end of period
YoY growth-21%
Geographic breakdown
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Revenue per geographical region
Group (EUR millions)Apr-Jun
2019Jul-Sep
2019Oct-Dec
2019Jan-Mar
2020Apr-Jun
2020
Nordics 6,0 6,1 6,1 6,2 6,7UK 12,7 12,8 12,0 9,9 10,6Rest Of Europe 43,8 46,5 53,3 59,8 62,4Asia 10,0 13,9 17,7 20,8 28,2North America 4,7 6,1 6,6 7,1 8,5Other 8,5 9,3 10,2 11,4 12,1Total operating revenues 85,7 94,7 106,0 115,1 128,5
Share of regulated markets 44% 42% 40% 38% 33%Revenues, regulated markets 37,5 40,2 42,4 43,7 42,8
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New game releasesQ1 Q2 Q3
New game releases
Global demand require increased studio capacity
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• Lithuania, Kaunas, under construction
• US, Pennsylvania, under construction
• US, Michigan, well positioned to start construction
Financial development
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EUR million
51,659,3
64,370,2
79,385,7
94,7
106,0
115,1
128,3
22,026,2 28,0
31,635,9
42,748,5
55,8
64,1
81,1
42,6%44,2% 43,5%
45,0% 45,3%
49,8%51,2%
52,7%55,7%
63,2%
18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2Revenue EBITDA EBITDA, %
P/L detail
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Group Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul 2019- Jan-Dec(EUR thousands) 2020 2019 2020 2019 Jun 2020 2019Total operating revenues 128,307 85,728 243,456 165,025 444,183 365,752
Personnel expenses -30,316 -30,451 -63,626 -59,486 -130,559 -126,419Depreciation, amortisation and impairments -6,977 -6,116 -13,975 -11,845 -27,606 -25,476Other operating expenses -16,848 -12,547 -34,564 -26,891 -64,058 -56,385Total operating expenses -54,141 -49,114 -112,165 -98,222 -222,223 -208,280
Operating profit 74,166 36,614 131,291 66,803 221,960 157,472
Financial items -79 -51 -159 -96 -263 -200Profit before tax 74,087 36,563 131,132 66,707 221,697 157,272
Tax on profit for the period -3,642 -2,034 -6,491 -3,602 -10,435 -7,546Profit for the period 70,445 34,529 124,641 63,105 211,262 149,726
Average number of shares after dilution 187,046,005 183,387,343 185,825,338 183,390,677 184,604,672 183,387,341Earnings per share after dilution (EUR) 0.38 0.19 0.67 0.34 1.14 0.82
Cash flow and financial resources
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Note: Op. cash flow defined as EBITDA – Change in NWC – Investing activities
Capital expenditure Operating cash flow Balance sheet summaryEUR m
14%15%
13% 14%
11%
9% 9%8% 8% 8%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
0,0
2,0
4,0
6,0
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10,0
12,0
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MEU
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TangiblesIntangibles% of revenue, rolling 12 month
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Op. Cash flow Cash conversion
EUR million 2020-06-30 2020-03-31 2019-12-31
Total non-current assets 111,3 109,6 105,0
Current assets 168,7 157,8 146,6
Cash 212,0 204,9 182,5
Total current assets 380,7 362,7 329,2
Total assets 492,0 472,3 434,2
Total equity 322,8 330,0 280,9
Total long-term liabilities 17,9 19,0 15,6
Total current liabilities 151,3 123,3 137,7
Total equity and liabilities 492,0 472,3 434,2
Look ahead…
• Increasing the gap to competitors and new fantastic products
• Growth in the US
• Close the deal with NetEnt
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Q&A
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