Q Cherry AB (publ) Q Presentation 16 August 2018

Transcription

1 Cherry AB (publ) Q2 218 Presentation 16 August 218 Presenters: Morten Klein, Executive Chairman Gunnar Lind, Acting CEO Christine Rankin, CFO Q2218

2 Cherry at a glance Offering a broad platform of exciting verticals Cherry s strategy is to create shareholder value by owning and developing fast-growing and profitable companies in the gaming, media and entertainment companies. 2

3 Cherry the Gaming Engine Sustainable business model 3

4 Q2 218: Highlights Continued expansion and innovative actions Continued solid development Group revenue up 41% to MSEK 753 (536). EBITDA up 78% to MSEK 165 (93) GDPR and preparations for Swedish reregulation Increased number of shares in Cherry AB (publ) following new issues in June. (15,668,26 shares / 15,56,26 votes) EPS.76 SEK (.3) XX AGM 218 Re-election of the Board After end of the period: Sports betting licence in Poland Acquisition of additional shares in Highlight Games, up to 6.4% Game Lounge to enter US and Mexico following acquisition of premium domain names 4

5 Continued growth and investments in marketing Organic revenue growth: 39% (37) 8 % Online Gaming: Marketing as share of revenue 42 % ,7 14,4 2,5 15,4 17,3 19,8 23,2 28,2 21, % Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Revenue, MSEK EBITDA margin, % Revenues, MSEK Marketing,MSEK 5

6 Strengthening our position in key markets Continued good sequential growth Revenue per business area, MSEK EBITDA per business area, MSEK % % Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Online Gaming Game Dev Online Mrktg Gaming Tech Rest Casino Online Gaming Game Dev Online Mrktg Gaming Tech Rest Casino 6

7 Business area Online Gaming Investing in marketing and sustainable growth Revenues NDC at end up of 38%, June, from up % to 61 MSEK 21 Rolling twelve months 21 % EBITDA amounted to 119 MSEK (62) Amount deposited increased 51%, from 1,39 to 1,975 MSEK Mobile share amounted to 68% (57) Increased marketing, partly related to FIFA World Cup Improved product offering Polish licence granted Appointment of Lahcene Merzoug as permanent CEO Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q Revenues, MSEK EBITDA margin,msek EBITDA margin, % 7

8 Business area Game Development Strong growth and signing well-established operators XRevenues up 65%, from 4 to 67 MSEK EBITDA amounted to 22 MSEK (18) 25 Rolling twelve months 5 % Yggdrasil signed 13 new license agreements (12) and launched 5 new games, including first Table Game Sonya Blackjack Mobile share of EGW was 62% (56%) Yggdrasil awarded award Innovation in RNG Casino Software at the EGR B2B Awards 1 2 Highlight Games in an interesting phase as the company is currently live with its Soccerbet product in Nigeria, Uganda, Rwanda, Congo, Burundi, Tanzania, with several other African countries going live in the coming months. And soon to be launched in Italy 5 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Revenues, MSEK EBITDA margin, MSEK EBITDA margin, % 1 8

9 Business area Online Marketing Building a strong platform and entering new verticals Revenues XX up 74%, from 33 to 57 MSEK 2 Rolling twelve months 8 % EBITDA amounted to 28 MSEK (2) Smooth integration of TodaysWeb 15 6 Growing revenue stream from Japan In August, Game Lounge announced acquisitions of premium domains in New Jersey and Mexico Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Revenues, MSEK EBITDA margin, MSEK EBITDA margin, % 9

10 Business area Gaming Technology Providing integral services to operators Revenues Interim CEO: increased from 1 to 18 MSEK 6 Rolling twelve months 36 % EBITDA amounted to 8 MSEK () Launch of new website for Omarsys Appointment of acting CEO Certified according to ISO Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Revenues, MSEK EBITDA margin, MSEK EBITDA margin, % 1

11 Business area Restaurant Casino Stable operation with a strong brand Revenues XX unchanged, 37 MSEK (37) 18 Rolling twelve months 12 % EBITDA amounted to 2 MSEK (3) Less revenues on the back of the unresolved Lotteriinspektionen situation Swedish re-regulation expected to allow increased bets on table games. Roulette and dice games, from 7.5 to SEK Black Jack and card games, from 75 SEK to SEK Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Revenues, MSEK EBITDA margin, MSEK EBITDA margin, % 11

12 Our financial position Q2-218 Operating cash flow? Cash: 389 MSEK (31 Dec 217: 299) Interest bearing liabilities: 1,833 MSEK (31 Dec 217: 1,743) Equity: 1,58 MSEK (31 Dec 217: 1,242) Equity/assets ratio: 4% (31 Dec 217: 34%) 12

13 Market outlook Q2 218 The gaming market is currently growing strongly and Cherry estimates that demand in the Group s largest geographic markets will continue to develop favourably. The Group is continuously reviewing the prerequisites for new business opportunities in related operations and geographic markets in Europe, as well as outside. The Group s focus is to create shareholder value by being an active part in developing new and existing companies within gaming, media and entertainment. The goal is for the companies to become market leaders in their respective areas by building their operation on the core values, entrepreneurship, responsibility and commitment. These are important fundamentals for the Group to be able to achieve its financial targets and to continue its successful profitable growth, through both organic growth and acquisitions, in existing and new verticals and geographic markets. 13

14 Thank you for listening Questions? Disclaimer: This presentation has been prepared by Cherry AB solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially and adversely affected by other factors such as the effect of economic conditions, exchange-rate and interest rate movements, political risks, the impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of Cherry, or any of its principal shareholders or subsidiary undertakings or any of such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 218 Cherry AB (publ) Financial calendar Interim report Q October 218 Interim report Q February 219 Interim report Q May 219

15 Appendix

16 Financial summary Q2 218 Key performance indicators, Group SEK M Q2 218 Q2 217 Change H1 218 H1 217 Full-year 217 Net revenues % 1,434 1,77 2,252 Organic growth 39% 37% +2pp 32% 4% 27% EBITDA % EBITDA-margin 22% 17% +5pp 25% 16% 19% Profit % EPS after dilution* SEK.76 SEK.3 +SEK.73 SEK 1.55 SEK.26 SEK.53 Equity/asset ratio 4% 44% -4pp 4% 44% 34% * Earnings per share are calculated based on the profit for the period excluding the minority share. Revenue for the first 6 months 218 up 33% EBITDA for the first 6 months 218 up 13% Profit for the first 6 months 218 up 251% 16

17 Financial summary Q2 218 Revenue per business area Gross revenue by business area, MSEK SEK M Q2 218 Q2 217 R12 217/18 FY 217 Online Gaming ,7.6 1,823.4 Elimination Game Development Elimination Online Marketing Elimination Gaming Technology Elimination Restaurant Casino Group , ,251.8 * Eliminations of revenues from Cherry Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Online Gaming Game Dev Online Mrktg Gaming Tech Rest Casino 17

18 Financial summary Q2 218 EBITDA per business area SEK M Q2 218 Q2 217 R12 217/218 FY 217 Online Gaming Game Development Online Marketing Gaming Technology Restaurant Casino Group-Wide , Group * Eliminations of revenues from Cherry EBITDA by business area, MSEK Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Online Gaming Game Dev Online Mrktg Gaming Tech Rest Casino 18

19 Financial summary Q2 218 Income statement SEK M Q2 218 Q2 217 Change Full-year 217 Net revenues % 2,252 EBITDA % 429 EBIT % 295 Financial net EBT Taxes Total net profit Equity holders of the parent company

20 Shareholders, 3 June 218 Total of 9,258 registered shareholders Name Class A-shares Class B-shares Share of capital Share of votes Prunus Avium 25,93, Klein Group 5, 14,431, Hamberg family 1,478,15 2,139, Kling family* 1,478,15 1,877, Lundström family 522, 722, Handelsbanken Luxemb. 28,495 2,63, Lindwall family 448,85 87, Avanza 5,24, Credit Agricole Indosuez 28,49 1,93, Björn Grene 3,75, largest shareholders 4,988, 59,379, Other 41,3, Total 4,988, 1,68, Distribution of votes, % Sweden Rest of world * No single individual holds shares exceeding 1%. Sources: Euroclear and Cherry 2

21 Share price development in YTD Listed on Nasdaq Stockholm, Mid Cap, since October 217 Ticker symbol ISIN code CHER B SE Closing price 15 Aug 218: SEK 67.3 Sector Travel & Leisure No. of shares, 15,668,26 (series A: 4,988, + series B: 1,68,26) Own shares Voting & ownership restrictions Current market cap Contact: None SEK 7.1billion IR, Anders Antonsson anders.antonsson@cherry.se Source: Euroland 21

22 Financial targets Continued migration to online gaming Sales growth Cherry s target is to grow more quickly than the European gaming market over an economic cycle. In addition to this, Cherry intends to grow through acquisitions Growth driven by Diversified Strong track Margin investments in operations Capital structure record of successfully acquiring entrepreneurial covering entire Cherry s target is to companies chain from Cherry s capital and structure developing increase the adjusted EBITDA should allow for a high degree technology to innovative assets of financial flexibility and consumer margin over time and in the medium term to achieve an adjusted EBITDA margin of between and 18 percent. 5. Leading Nordic Number of M&A and European candidates show player Dividend with platform for continued potential policy high residual Cherry s target is to distribute 5 percent, or more, of net profit as dividend. expansion Account should, however, be taken of the company s financial position, cash flow, opportunities for acquisitions and future prospects. provide scope for acquisitions. The company s target is for the equity ratio to be at least 3 percent. 6. Listing on Nasdaq Stockholm 22

23 Cherry s broad portfolio of strong brands Engaging and building relationships with players 23