interim report january-june 2021 21 july 2021 cfo, jacob
TRANSCRIPT
Interim Report January-June 202121 July 2021
CEO, Martin CarlesundCFO, Jacob Kaplan
Highlights in the quarter– Operational • World wide demand for Evolution online casino
• Expansion in all existing and new studios
• Live Casino studio in Michigan ready to be launched
• Construction started in new European delivery hub
• Construction started in new studio in Canada
• Planning for one additional European delivery hub started
• Acquisition of Big Time Gaming completed
• Lightning Roulette product be launched in land-based casinos all over USA
• Five wins at EGR B2B Awards including Live Casino Supplier of the Year
• Still operative challenges with COVID and COVID related restrictions
Highlights in the quarter
3
Second quarter of 2021 (Q2 2020)• Operating revenues +100% to
EUR 256.7 million (128.3)• Live revenue growth +59% to 203.7 MEUR
(128.3)
• EBITDA +115% to EUR 174.7 million (81.1)• EBITDA margin 68.0% (63.2)
January-June 2021 (1H 2020)• Operating revenues +102% to
EUR 492.5 million (243.5)• EBITDA +130% to EUR 334.8 million
(145.3)• EBITDA margin 68.0% (59.7)
Continued strong increase in activity across the EVO Live network
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Bet spots EVO Live Network
0
2 000 000 000
4 000 000 000
6 000 000 000
8 000 000 000
10 000 000 000
12 000 000 000
14 000 000 000
16 000 000 000
18 000 000 000
20 000 000 000
18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
YoY growth+47%
Increase in staff
5
Headcount end of period
4 496 4 856 5 2575 847
6 497 6 892 7 3427 828 8 240
6 7647 395
9 50610 226
11 311
0
2 000
4 000
6 000
8 000
10 000
12 000
18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2
YoY growth67%
Revenue by game type
Live; 79,3%
RNG; 20,7%
Q2 2021
New live game releases
Geographic breakdown
Revenue per Region
Group, EUR millions
Apr-Jun
2020
Jul-Sep
2020
Oct-Dec
2020
Jan-Mar
2021
Apr-Jun
2021
Nordics 6.7 5.8 11.1 16.4 16.4
UK 10.6 9.5 13.9 21.4 19.8
Rest of Europe 62.4 65.6 81.1 104.1 104.0
Asia 28.2 34.8 41.9 53.2 65.7
North America 8.5 9.2 12.6 21.6 27.2
Other 12.1 15.1 17.1 19.1 23.5
Total operating revenues 128.5 140.0 177.7 235.8 256.7
Share of regulated markets 33% 32% 36% 40% 40%
Revenues, regulated markets 42.8 45.2 64.3 93.9 102.9
Financial development
9
EUR million
39,7 42,3 45,7 50,7 51,659,3 64,3 70,2
79,385,7
94,7106,0
115,1128,3
140,0
177,7
235,8
256,7
17,0 19,2 21,8 22,6 22,0 26,2 28,0 31,6 35,942,7 48,5
55,864,1
81,190,7
115,6
160,1174,7
42,8%45,4%
47,7%44,6%
42,6%44,2% 43,5%
45,0% 45,3%
49,8% 51,2%52,7%
55,7%
63,2%64,8% 65,1%
67,9% 68,0%
17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q12 20Q3 20Q4* 21Q1 21Q2
Revenue
EBITDA
EBITDA, %
* Adjusted for 19,4 MEUR non-recurring acquisition and restructuring cost** NetEnt reported figures 2020, not included in total Revenue in chart
Live 115.1 128,3 140,0 159,7 183,7 203,7
RNG 49.0** 54,2** 49,3** 49,6** 52,2 53,0
P/L detailApr-Jun Apr-Jun Jan-Jun Jan-Jun Jul 2020- Jan-Dec
Group, EUR thousands 2021 2020 2021 2020 Jun 2021 2020
Revenues - Live 203,678 128,307 387,352 243,456 687,211 543,315
Revenues - RNG 53,009 - 105,176 - 122,995 17,819
Total operating revenues 256,687 128,307 492,528 243,456 810,206 561,134
Personnel expenses -51,564 -30,316 -100,364 -63,626 -170,490 -133,752
Depreciation, amortisation and impairments -18,816 -6,977 -37,293 -13,975 -55,831 -32,513
Other operating expenses -30,455 -16,848 -57,371 -34,564 -117,976 -95,169
Total operating expenses -100,835 -54,141 -195,028 -112,165 -344,297 -261,434
Operating profit 155,852 74,166 297,500 131,291 465,909 299,700
Financial items -2,735 -79 -3,688 -159 -4,547 -1,018
Profit before tax 153,117 74,087 293,812 131,132 461,362 298,682
Tax on profit for the period -8,711 -3,642 -17,368 -6,491 -24,937 -14,060
Profit for the period 144,406 70,445 276,444 124,641 436,425 284,622
Average number of shares after dilution 223,350,840 187,046,005 220,865,210 185,825,338 206,541,214 189,021,346
Earnings per share after dilution, EUR 0.65 0.38 1.25 0.67 2.11 1.51
Cash flow and financial resources
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Capital expenditure Operating cash flow Balance sheet summaryEUR m
11%
9% 9%
8% 8% 8%7%
7%6%
6%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
19
Q1
19
Q2
19
Q3
19
Q4
20
Q1
20
Q2
20
Q3
20
Q4
21
Q1
21
Q2
MEU
R
Tangibles
Intangibles
% of revenue, rolling 12 month
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
20
40
60
80
100
120
19
Q1
19
Q2
19
Q3
19
Q4
20
Q1
20
Q2
20
Q3
20
Q4
21
Q1
21
Q2
MEU
R
Op. Cash flow Cash conversion
(EUR m)30/06/2021
31/12/2020
Total non-current assets 2 908,3 2 669,9
Current assets 377,4 277,6
Cash and cash equivalents 200,4 221,7
Total current assets 577,8 499,2
TOTAL ASSETS 3 486,1 3 169,1
Total equity 3 004,0 2 726,2
Total non-current liabilities 119,1 74,7
Total current liabilities 363,0 368,2
TOTAL EQUITY AND LIABILITIES 3 486,1 3 169,1
Note: Op. Cash flow defined as Cash flow from operating activities less Cash flow from investing activities (excl M&A)Cash conversion = Op.Cash flow / EBITDA
Outlook for 2021
➢ New games for 2021 still to be launched
➢ Continued expansion in the US, soon to launch the Michigan
studio
➢ Continue to take market-shares and to increase gap to
our competitors
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