Interim report for 4th quarter 2021

Financial report for the period ended 31^st December 2021

Key Facts for the 4^th Quarter 2021 (1^st October 2021 – 31^st December 2021)

Continued growth in the Sportsbook

• Revenues decreased by 19.03 % to €9,618,463 (€11,879,282).
• EBIT decreased by 64.07% to €1,452,790 (€4,043,740).
• EBIT margin of 15.10% (34.04%).
• Customer deposits decreased by 18.90% to €20,507,189 (€25,286,513).
• 64,604 new registered customers (71,767), decrease of 9.98%.
• 15,551 new depositing customers (31,093), decrease of 49.99%.
• Earnings per share of €0.0006 (€0.0463), decrease of 98.70%.
• Premiergaming Ltd, the Group’s subsidiary focusing on Northern Europe, represented 7.93 % of the Group’s revenues in Q4 2021.
• 18.43% of the new depositing customers in Q4 2021 came from the Sportsbook project launched in June 2021 (9.75% in Q3 2021).
• During Q4 2021 the Group’s CEO conducted a detailed review of all the subsidiaries due to a lower performance than expected. The review resulted in a detailed action plan, focusing on growth, improving EBIT and a new operational structure. During the review extraordinary cost of €1,197,232 (mainly bad debts and unrecorded affiliate costs) were identified, which are fully accounted for in Q4 2021.

Events after Q4

• The Board of Directors proposes distribution to shareholders of €6,373,725 by way of dividend for the fiscal year 2021 (2020: €8,998,200), which corresponds to €0.085 per share (2020: €0.12), a decrease of 29.17%. Angler Gaming plc will not compensate for currency exchange cost.
• The Group’s average daily Net Gaming Revenue for the first 42 days in Q1 2022 is 0.5% higher compared to the average daily Net Gaming Revenue in Q4 2021. The Net Gaming Revenues for the first 42 days in Q1 2022 is 34.2% lower compared to the Net Gaming Revenues for the same period in 2021.
• The joint venture in the field of affiliate marketing for South American markets announced in the Q1 2021 report, through establishing a jointly owned company where the Group owns 80% and the local party owns 20%, is now expected to generate revenues in Q3 2022.
• The Group CEO is taking on an additional role of Acting Operational CEO to lead the execution of the improvement action plan during the next 6 months.

Key Facts for 2021 (1^st January 2021 – 31^st December 2021)

All-time high in Revenues

All figures are compared to 2020 if not explicitly stated otherwise

• Revenues increased by 0.03% to €43,404,095 (€43,392,002).
• EBIT decreased by 34.29% to €9,267,304 (€14,103,138).
• EBIT margin of 21.35% (32.50%).
• Customer deposits decreased by 0.01% to €92,663,807 (€92,674,661).
• 1.92% decrease in newly registered customers 248,433 (253,293).
• 82,246 new depositing customers (117,634), decrease of 30.08%.
• Earnings per share of €0.0969 (€0.1534), decrease of 36.83%.

Comments from the CEO

Q4 2021 was a challenging quarter in terms of performance figures, especially with comparison to strong figures of Q4 2020. Due to the lower than expected performance, I led a detailed review of all the subsidiaries within the Group. The review resulted in a detailed action plan. In brief, the plan is focusing on future growth of revenues and increased profit through improved management of cost. Here are the main areas of the action plan:

• New operational structure with a strengthen organisation.

• Re-engineered and strengthened affiliate sales department.

• Re-designed customer retention program.

• New 3^rd party state of the art CRM software, to be implemented mid Q1 2022.

• Strengthened payments department.

• Improved casino offer.

• Aggressive plan to roll-out the strong Sportsbook offer.

• Launching an SEO department.

• Daily follow up of cost drivers and improvement actions within mainly Cost of Sales.

The quarter started slow but picked up in November and December, showing the first signs that the action plan, though still in early implementation phase, is working and starting to produce results:

Despite the challenges, 2021 was the best year in the Group’s history in terms of revenues. The Board of Directors proposes the second best-ever distribution to the shareholders of €6,373,725 (€0.085 per share) by way of dividend for the fiscal year 2021. The Group has some challenges ahead, but we are confident that the plan going forward is the right path for future growth and profits for the Group. During the next 6 months, in addition to carrying out the role of the Group CEO, I will be the Acting Operational CEO to ensure the proper implementation of the improvement plan in all departments.