Lotteries and Gambling Supervisory Inspection of Latvia Provides Counselling to 127 Gambling Addicts

Third quarter: 1 July – 30 September 2019

• Revenues totalled EUR 10.0 million (7.6), a 32% increase.
• Gaming revenues increased 39% to EUR 9.2 million (6.6).
• Revenues from regulated markets were 94%.
• Total active customers were 37,536 (35,621), an increase of 5%.
• Deposits totalled EUR 29.9 million (20.8), a 43% increase.
• Media revenues were EUR 0.60 million (0.69), a decrease of 12%.
• Number of NDC’s in Media totalled 3,546 (1,424), an increase of 149%.
• Solutions revenues decreased 15% to EUR 0.27 million (0.32).
• EBITDA was EUR 3.11 million (2.44), EBITDA margin was 31.0% (32.2%).
• EPS growth of 39% to 0.041 EUR per share (0.029).

9-month period: 1 January – 30 September 2019

• Revenues totalled EUR 28.4 million (21.7), a 31% increase.
• EBITDA was EUR 8.41 million (6.39), EBITDA margin was 29.6% (29.5).
• Adjusted EBITDA was EUR 8.77 million (6.86), adjusted EBITDA margin was 30.8% (31.6).
• EPS growth of 46% to 0.110 EUR per share (0.075).

“It never gets old – starting with my opening line ‘Our best quarter yet.’ The company’s strong momentum from Q2 continued into Q3 and as a group, we broke the EUR 10M revenue milestone for the quarter, showing a very strong 31% EBITDA margin. Our debt-free balance sheet allows for an efficient transition to net profit which ends up in our bank account due to our strong cash conversion. We also continue to have high EPS growth of 39% as Gaming continues to deliver strong results. And it is great to see Media continuing moving in the right direction. It is certainly safe to say the trend is positive. All in all, another very solid quarter with no surprises.

“The quarter showed overall strong performance, but September stands out as a record-breaking month on all fronts – so I have great confidence going into Q4. October has been off to an even better start as we launched a lot of new content, with Evolution Gaming in Latvia being a key driver going forward. We are also in the final stage of migrating optibet.com to our new platform, which operates on our Maltese license. This means we will have a highly competitive offering, enabling us to go after markets beyond the Baltics. Completely in line with our previously communicated strategy.

“Our strong cash position opens up for acquisition opportunities, and as we have communicated, we continue looking. But sometimes the best deals are the ones you don’t do. We have great responsibility towards all our shareholders to maximise the value of that cash and we will spend it wisely.” Says CEO and Group president Robert Andersson.

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