Fourth Quarter, October – December 2019
- Revenue for the period amounted to SEK 57.5 (236.4) million.
- Operating profit was SEK -26.6 (18.0) million.
- Profit after tax for the period was -31.6 (16.1) mkr, or SEK -0.77 (0.39) per share.
- Cash flow from operations for the period amounted to SEK -43.2 (7.7) million.
Full year, 2019
- Revenue for the period amounted to SEK 412.1 (915.9) million.
- Operating profit was SEK -118.7 (148.6) million.
- Operating profit before non-recurring write-downs was SEK -107.1 (148.6) million.
- Profit after tax for the period was SEK -122.0 (125.1) million, or SEK -2.98 (3.09) per share.
- Cash flow from operations for the period amounted to SEK -129.0 (161.8) million.
- The Board proposes to the Annual General meeting that no dividend should be distributed to the shareholders.
Other significant events during the quarter
- The appeal of the licence revocation was rejected by the Administrative Court.
- Verdict in Patent and Market Court in the case between Consumer Ombudsman and Elec Games Ltd concerning moderate advertisement.
Events after the end of the period
- The Administrative Court of Appeal gave a review permit for the appealed licence revocation.
- The Swedish Gaming Authority rejected the request to add ninjacasino.se on Viral Interactive Limited’s licence.
I ended my previous CEO message saying that we look brighter at the future than we have done in many months. This is a statement that I would like to repeat now as we sum up 2019 and look ahead to 2020.
During the period, our efforts to create the conditions to succeed with our short- and long-term goals have continued unabated. We have completed the technical migration to Finnplay’s platform, fine-tuned a partially new and much smaller organization, regained control of our costs and – not least – internally anchored, launched and started delivering according to the ambitious road-map that followed this autumn’s extensive strategy work.
What does this mean in practice? As a shareholder, what can you expect this to result in and when? In the long term, in a few years’ time, our strategic goal is to take back and pass what we lost in 2019. Our vision, which can be repeated, is to be a truly global player that delivers high-quality products and returns by being responsible, taking data – and knowledge-based decisions and by delivering quality on time. In the short term, 2020, our goal is, all else being equal, to once again be a lucrative and profitable company. Our first intermediate goal is to be at least break-even again in the first half of the year and then to deliver continuously increasing black numbers.
How shall we achieve this?
- 2020 has begun fulfilling expectations. It is still early, but the month of January lived up to our high hopes and we see no reason why the development should not continue on the same path.
- We have control over the costs as a whole and the costs of marketing in particular. As known, we entered 2019 with almost SEK 210 million in marketing commitments. These are now history and the commitments we have for 2020 are of a completely different size. We will of course market ourselves in the future as well, but all marketing is based on well-founded models aimed on results and profitability.
- The technological change we have undergone and continue to work with has meant that we are now in a technical environment where we will be able to be more adaptable and quick-footed in the future. Our technical lead times are shrinking, which is of great benefit to all parts of the business.
- Our operations in Estonia and Finland are profitable and continue to be strong. The decrease in sales we saw during the quarter, about five per cent compared to the third quarter, is partly explained by the fact that we moved the entire business to a new platform, but also that we implemented changes in the organization and that the strict cost control had some delayed effects. Now the organization is in place and we believe that, despite increased competition, we will consolidate and also strengthen our already large market share in these markets during the year. Estonia and Finland grew by more than fifty percent in 2019 compared to 2018.
- An important part of our future lies in the fact that we are expanding our range of brands and products and that we are in more markets than those in which we operate today. Ninja Casino is a very strong brand which external assessors attribute to a not insignificant value. Of course, we are aware of this and we intend to have the brand try its wings in a number of new locations. The technical changes I mentioned above will make this possible and our goal is to launch Ninja Casino in a number of markets during the year and to have at least one new brand operating in new and existing environments. Exactly where and when we will return to.
- We intend to launch sportsbook with a comprehensive offer in our existing markets well in advance of the European Football Championship this coming summer. As always, it is an interesting championship and especially this year with the positive twist for us that Finland for the first time qualified for the playoffs. We hope to be able to return to the forms soon, but the offer will not be made through our previous collaboration with Kambi. Since we do not see how we together and in the near future will be able to launch in the Swedish market, which was the main market for the cooperation, our agreement with Kambi has been concluded.
Sweden is still important to us and we regret that the Swedish Gambling Authority recently rejected Viral Interactive’s application to add the domain ninjacasino.se to its offer. We do not share the Swedish Gambling Authority’s assessment and, to say the least, find the motivation strange. More important and more gratifying is that our appeal of the Swedish Gambling Authority’s decision to revoke our subsidiary SafeEnt’s licenses for the Swedish market has been granted review permit in the Administrative Court of Appeal. We look forward with confidence and excitement to the decision of the Administrative Court of Appeal, which we believe will be announced in the coming months.
There is a good bit left for us before we have recovered from the 2019 setbacks and certainly there is much that can go against us. My most important message now, given the difficult starting position, is that there is a lot that goes well. We firmly believe that the processes we control ourselves go according to plan and we firmly believe that when we sum up in 2020 in a year, it is something quite different from the year we have now left behind. We believe in what we do!
Thank you for the confidence.
For further information, please contact
Tobias Fagerlund, CEO
+46 (0)704 15 05 85,
Niklas Jönsson, CFO
+46 (0)8 551 154 31,
The information in this press release is such that Global Gaming 555 is required to disclose under the EU Directive of Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above on February 20, 2020 at 08:00 CET.
About Global Gaming
Global Gaming is a challenger in the iGaming industry, delivering innovative and safe gaming services and operating a number of successful casino brands. Its flagship, Ninja Casino, builds on the PayNPLay technology, allowing players to enjoy a safe and seamless online casino experience by simplifying and shortening the registration process. The company is listed on Nasdaq First North Growth Market in Stockholm. The company’s Certified Adviser is Redeye AB, with contact information, +46 (0) 8 121 576 90, email@example.com.