Mr Green & Co AB Interim Report - Q3

Transcription

1 Mr Green & Co AB Interim Report - January-September November 6, MR GREEN & CO AB 1

2 The Mr Green Group organized for growth Mr Green & Co AB Sweden Mr Green & Co AB - a Swedish company owning, acquiring and developing leading online gambling companies Listed on AktieTorget Total Staff: 159 Mr Green Ltd Malta Mr Green & Co Technology AB Sweden Casino focused Two brands: Mr Green and Garbo MGA licence, Malta UK and Italian licenses MR GREEN & CO AB 2

3 Business Highlights Outgrowing the market Strong underlying profit growth and continued cost focus Ongoing investments in product development a number of product deployments during Write down of intangible assets in Social Thrills with SEK 25.9 million Mr Green Ltd has been granted a local license in the UK Gaming taxes in Austria booked in the income statement according to a worst case scenario Highlights after the end of The Board gave mandate to management to investigate a possible listing at Nasdaq Stockholm in 2016 MR GREEN & CO AB 3

4 Mobile development Mobile revenue share - growth 72% year on year 35% 30% 25% 20% 12,8% 17,6% 20,7% 21,6% 24,1% 25,8% 27,4% 31,1% 15% 10% 5% 0% MR GREEN & CO AB 4

5 App ranked Nordic #1 Source: Sensor Tower based on Apple App Store MR GREEN & CO AB 5

6 Financial Highlights MR GREEN & CO AB 6

7 Financial Highlights Revenues SEK million (ATH) Substantial growth 19.6% (European online gambling market 9%* ) EBITDA excluding items affecting comparability SEK 40.8 million EBITDA excluding items affecting comparability down 3.7% year on year EBIT SEK 82.7** million Active customers 73,689 Deposits +35 % (ATH) * Source: H2GC September ** EBIT includes items affecting comparability of SEK 81.6 million (gaming tax Austria) and SEK 25.9 million (intangible asset impairment pertaining to Social Thrills) MR GREEN & CO AB 7

8 European online gambling market growth (EUR bn) CAGR -2020E 8,4% p E 2016E 2017E 2018E 2019e 2020e Source: H2GC September MR GREEN & CO AB 8

9 Revenues +19.6% (SEK million) , , , ,1 60 MR GREEN & CO AB 9

10 Revenue outside the Nordics (SEK million) % 60% 50% 40% 30% 20% 10% 0 0% MR GREEN & CO AB 10

11 Income statement - vs Consolidated income statement (SEK 000s) Jul-Sep Jul-Sep Variance Game win of which Mobile Total revenue Cost of sales of which betting duties in Austria (RECURRENT) of which betting duties in other markets Work performed by the Group for its own use and Capitalized Marketing Personnel costs Other operating expenses EBITDA before items affecting comparability Items affecting comparability (ONE OFF) EBITDA Depreciation and amortisation Impairment (ONE OFF) Earnings before interest and tax (EBIT) RECURRENT ONE OFF TOTAL RECURRENT and ONE OFF MR GREEN & CO AB 11

12 EBITDA before items affecting comparability -3.7% EBITDA 58.1 (SEK million) +37% if betting duties in Austria are removed (SEK million) 21,7 31,5 42,4 40,8 MR GREEN & CO AB 12

13 Cost of sales excl. betting duties in relation to revenue (SEK million) 60 25% 50 20% 40 15% % 10 5% 0 CoS 22,1 24,0 26,6 28,5 30,1 32,6 34,5 32,9 34,2 CoS/Revenue 17,8% 17,6% 17,2% 17,7% 17,8% 18,6% 17,7% 16,9% 17,0% 0% MR GREEN & CO AB 13

14 Other cost in relation to revenue (SEK million) 60 35% 50 30% % 20% 15% 10% 10 5% 0 Other cost 20,9 16,1 18,6 21,5 21,5 22,6 23,4 28,3 28,1 34,8 36,9 40,8 39,3 44,4 44,5 Other cost/revenue 29,4% 24,6% 22,9% 21,3% 19,7% 19,7% 18,8% 20,8% 18,2% 21,6% 21,9% 23,3% 20,1% 22,8% 22,1% 0% MR GREEN & CO AB 14

15 Marketing cost in relation to revenue (SEK million) % 50% 40% 30% 20% 10% 0 Marketing cost 40,0 32,6 25,6 36,8 43,0 42,3 46,8 65,0 62,4 59,3 58,8 82,0 90,2 67,2 56,6 Mark./Revenue 56,1% 49,9% 31,5% 36,5% 39,5% 36,9% 37,7% 47,7% 40,3% 36,8% 34,9% 46,9% 46,2% 34,5% 28,1% 0% MR GREEN & CO AB 15

16 Deposits up 35% (SEK million) , , , MR GREEN & CO AB 16

17 Update Austrian tax MR GREEN & CO AB 17

18 Why Austria costs now? We have not changed our view on this matter and we contest the Austrian tax liability As a precautionary measure increase transparency and show a worst case scenario Reduce uncertainty going forward - no downside even if we don t succeed and/or a decision takes a long time We are confident that Austria over time will follow the re-regulation trend that we see in Europe MR GREEN & CO AB 18

19 Update Austrian tax As of January 2011, online gaming that takes place in Austrian territory is to be taxed at a rate of 40% of the sales (gross game win) One of the main problems with this tax is that it cannot be calculated correctly since the company does not know where the customers are physically when playing Mr Green contests the obligation with reference to Austrian constitution and EU legislation Since September Mr Green Ltd has been filing a self declaration of the gross game win following the same principle as in the declaration for the historical period but with a taxable amount of 0 (which was not an alternative for the historical period ) Period Amount Historical period (Jan 2011 Aug ) SEK million Ongoing provision (Sep Jun ) & adjusted provision for the historical and ongoing period SEK 81.6 million in MR GREEN & CO AB 19

20 Events after The Board gave mandate to management to investigate a possible listing at Nasdaq Stockholm in 2016 MR GREEN & CO AB 20

21 Key takeaways Continued strong growth outgrowing the market Strong underlying profit As a further precautionary measure and to increase transparency around the potential Austrian tax liability we will from now on book it as costs in the income statement Possible listing at Nasdaq Stockholm during 2016 MR GREEN & CO AB 21

22 Q&A MR GREEN & CO AB 22

23 Contact details Per Norman CEO +46 (0) Jan Tjernell - General Counsel +46 (0) jan.tjernell@mrgco.se Simon Falk CFO +46 (0) simon.falk@mrgco.se Frida Adrian IR +46 (0) frida.adrian@mrgco.se MR GREEN & CO AB 23