Quarter 3, July – September 2018
- Revenue up 93 percent to SEK 253.1 (131.4) million.
- Operating profit increased to SEK 60.3 (42.1) million.
- Profit after tax increased to SEK 54.3 (37.0) million, corresponding to SEK 1.33 (0.96) per share.
- Cash flow from operations SEK 59.8 (60.8) million.
Interim period, January – September 2018
- Revenue increased to SEK 679.5 (283.4) million, corresponding to a growth of 140 percent.
- Operating profit SEK 130.6 (80.0) million, up 63 percent.
- Profit after tax SEK 109.0 (70.4) million, corresponding to SEK 2.70 (1.82) per share.
- Cash flow from operations SEK 154.1 (73.3) million.
Other significant events during the quarter
- The Board appointed Joacim Möller as new CEO effective August 14.
- The subsidiary SafeEnt Ltd, Malta, was granted an Estonian licence.
- Global Gaming submitted the application for a Swedish gaming license on August 1.
- The Group signed an agreement with sports betting supplier Kambi.
Events after the end of the period
- The Group decided to terminate its Whitelabel operations.
Message from the CEO
Growing for the eighth consecutive quarter
During the third quarter, our revenue increased by 93 percent compared to the corresponding quarter of last year, and growth was 11 percent from the previous quarter. Impressive growth considering the dramatically increased competition in the Swedish market and given that in the latter part of the quarter we somewhat reduced marketing for Ninja Casino.
As further confirmation of our amazing growth, on November 14 we were named as Sweden’s fastest growing technology company by Deloitte (Deloitte Sweden Technology Fast 50 list). This is further proof that our PayNPlay concept, now firmly established both in the industry and with the legislator, has set a new standard.
NGR for Ninja Casino increased by 11 percent (NGR) compared to the second quarter of the year and deposits increased by 9 percent over the same period. Ninja Casino contributed 91 percent of the Group’s revenue during the quarter. Mobile usage for Ninja Casino has always been, and continues to be, high. In the third quarter, it increased to 75 percent.
During the third quarter, we saw the results of renegotiated supplier agreements, therefore we expect further improvements in terms of gross margin in the coming quarters. A new agreement is in place for the payment solution. As our business model is based on a very large number of transactions, we expect the new deal to have a greater impact than if we were a traditional online casino.
We have also taken the strategic decision to focus our resources entirely on the more profitable B2C business. This means we will carry on with the reduction of Whitelabel operations we started during the year as planned, and that we will not launch a new offer that we had initially planned.
This Autumn, work has progressed well with the new platform and it will be used to launch Ninja Casino in Estonia. We look forward to working with our successful concept in a regulated market where we see good potential. Our new front-end platform will also keep us at the technical forefront for a considerable amount of time to come.
As for the application process for a Swedish gaming license, work is ongoing, and we have a good dialogue with the Swedish Gaming Authority. We are therefore confidently awaiting a positive outcome.
In spite of the somewhat reduced marketing efforts in the third quarter, Ninja Casino consolidated its position as one of Sweden’s strongest brands. As we now, in the strongest period for the industry, increase our market efforts again, I am convinced we will see further growth for Ninja Casino in the fourth quarter.
For further information, please contact:
Joacim Möller, CEO
Tel: +46 8 551 154 32
Christoffer Tell, CFO
Tel: +46 8 551 154 31
Link to full report (Swedish) https://bit.ly/2AbSdHA