Interim Report for 2nd Quarter 2022: 1 April 2022 to 30 June 2022

Interim Report for 2nd Quarter 2022: 1^st April 2022 to 30^th June 2022

Key Facts for the 2nd Quarter 2022 (1^st April 2022 – 30^th June 2022)

Challenging quarter, encouraging start of Q3

All figures are compared to the same quarter last year if not explicitly stated otherwise

• Revenues decreased by 31.67% to €6,927,414 (€10,137,563)
• Negative EBIT of -€626,662 (€1,923,368)
• Negative EBIT margin of -9.05% (18.97%)
• Customer deposits decreased by 34.74% to €15,202,758 (€23,297,001)
• 91,142 new registered customers (58,078), increase of 56.93%.
• 14,344 new depositing customers (17,982), decrease of 20.23%.
• Negative Earnings per share of -€0.0159 (€0.0249).
  
• Premiergaming Ltd, the Group’s subsidiary focusing on Northern Europe, represented 16.5% of the Group’s revenues in Q2 2022.
  

Trading update Q3 2022

The trading update is an indication how the third quarter has started, it is not a revenue forecast for the quarter. Preliminary figures for July 2022:

• Revenues €2,921,059
  
• EBIT €614,743
  
• EBIT margin 21%

The average daily revenue for the first 39 days in Q3 2022 is 31% higher compared to the average daily revenue in Q2 2022. The revenue for the first 39 days in Q3 2022 is 10% lower compared to the first 39 days in Q3 2021.

Events during the Q2 quarter

• The Group’s improvement program, communicated in earlier reports, was fully implemented into the organisation and continues with full force. Compared to the previous quarter (Q1 2022) in Q2 2022 the Group saw an improvement in the following two key performance indicators:
  • 14,344 new depositing customers compared to 13,185 in Q1, an increase of 8.8%. This KPI is an indicator of future revenues.
  • 76,785 active customers compared to 68,245 in Q1, an increase of 12.5%, This KPI is an indicator of re-activation of existing customers.
• In June 2022 €6,373,725 was distributed to the shareholders by way of dividend for the fiscal year 2021, which corresponds to €0.085 per share.
• During the quarter non-profitable affiliate partnerships were terminated continuing affecting the revenues in the quarter. In addition, higher customer winnings than normal were recorded towards the end of the quarter.
• Due to a lower than initially projected financial results of Angler Gaming plc Group in H1 2022 and the resulting lower reserves of the Company, Angler Gaming plc, as communicated on 20 th June 2022, has taken a short-term loan facility of €1,000,000 in order to ease a cashflow pressure.

Events after the quarter

• The two B-to-B partnerships that were signed during H1 2022 are expected to be launched and start generating revenues in late Q3/early Q4 2022.
• The Group’s venture in the field of affiliate marketing for South American markets, where the Group owns 80% and the local party owns 20%, after starting generating revenues from its casino customer acquisition product in Q2, has embarked on building its second product, this time for the acquisition of sportsbook customer, to be launched before the 2022 Soccer World Cup.

Key Facts for half-yearly 2022 (1^st January 2022 – 30^th June 2022)

All figures are compared to half-yearly 2021 if not explicitly stated otherwise

• Revenues decreased by 37.53% to €14,776,411 (€23,652,673).
• Negative EBIT of -€209,423 (€5,702,425).
• Negative EBIT margin of -1.42% (24.11%).
• Customer deposits decreased by 35.4% to €32,439,683 (€50,215,045).
• 27.82% increase in new registered customers to 165,893 (129,787).
• 27,529 new depositing customers (47,795), decrease of 42.40%.
• Negative Earnings per share of -€0.0157 (€0.0696).