Interim report for 3rd quarter 2021

Financial report for the period ended 30^th September 2021

Key Facts for the 3rd Quarter 2021 (1^st July 2021 – 30^th September 2021)

Q3: Increase in Customer Deposits of almost 6%. Q1-Q3: All-Time High in Revenues in the first 9 months of 2021

Revenues decreased by 0.31% to €10,132,959 (€10,164,280).
EBIT decreased by 38.30% to €2,112,089 (€3,423,011).
EBIT margin of 20.84% (33.68%).
Customer deposits increased by 5.89% to €21,941,853 (€20,721,369).
54,046 new registered customers (57,784), decrease of 6.47%.
19,584 new depositing customers (26,763), decrease of 26.82%.
Earnings per share of €0.0267 (€0.0297), decrease of 10.10%.
Premiergaming Ltd, the Group’s subsidiary focusing on Northern Europe, represented 11.29% of the Group’s revenues in Q3 2021.
9.75% of the new depositing customers in Q3 came from the Sportsbook project launched the 13 June 2021.

Events after Q3

The joint venture in the field of affiliate marketing for South American markets announced in Q1 2021 report, through establishing a jointly owned company where the Group owns 80% and the local party owns 20%, is on track and should start generating revenues in the beginning of Q1 2022.
The Net Gaming Revenues for the first 35 days in Q4 2021 are 13.7% lower compared to the Net Gaming Revenues for the same period in 2020.
The turn-around project that started towards the end of Q2 this year due to lower activity levels, as was announced in July, is ongoing and started showing a positive trend.

Key Facts for 2021 (1^st January 2021 – 30^th September 2021)

All-time high in Revenues

All figures are compared to 2020 if not explicitly stated otherwise

Revenues increased by 7.21% to €33,785,632 (€31,512,720).
EBIT decreased by 22.32% to €7,814,514 (€10,059,398).
EBIT margin of 23.13% (31.92%).
Customer deposits increased by 7.08% to €72,156,618 (€67,388,176).
1.27% increase in newly registered customers 183,830 (181,533).
67,379 new depositing customers (86,541), decrease of 22.14%.
Earnings per share of €0.0963 (€0.1071), decrease of 10.08%.

Comments from the CEO

Thomas Kalita, CEO, comments: “The revenues in Q3 2021 were in line with the revenues in Q3 2020. Although this is far from the growth ambitions the Group has, we saw some improvements compared to Q2 2021, especially in the EBIT margin, where May and June suffered from much lower EBIT margin than we have got used to, mainly as a result of higher Cost of Sales, customer bonus cost and lower revenues than expected, in particular due to more Sportsbook markets being available. We are pleased that the Sportsbook we launched only a few months back, on 13^th of June, already represents almost 10% of the new depositing customers in Q3. In addition, customer deposits, an important KPI, are almost 6% higher compared to Q3 2020.

The turn-around project, that started due to lower activity level as announced the 12^th of July and in the Q2 report, have now started to show positive effect. As presented in the graph below, the monthly EBIT (in %) were low in May and June, but significantly improved in the subsequent months. The unusually high players winnings in September had negatively affected the September revenue and the higher player winnings continued in October. However, such fluctuations of winnings are to be expected from time to time. The Net Gaming Revenues for the first 35 days in Q4 2021 are 13.7% lower compared to the Net Gaming Revenues for the same period in 2020.

Interim report for 3rd quarter 2021