Financial targets

The Enlabs board of directors have adopted financial targets for 2021. Enlabs shall deliver EUR 20 million or more in EBITDA with earnings per share (EPS) increasing 40% or more annually through a combination of organic growth and acquisition. These financial targets are not a forecast, but rather an expression and clarification of the priorities our entire organisation actively works towards.

Value creating: Annual increase in EPS of 40% or more.

EPS (Earnings per share), calculated as net profit divided by total outstanding shares, is an immediate and clear measure of the company’s performance that can be attributed to the shareholders.

Profitability: EBITDA shall be EUR 20 million or more by 2021 with an EBITDA margin of 20–30%.

Enlabs considers profitability to be important even when showing growth, and EBITDA also provides an indication of operational cash flows.

Growth: 25% or more organic annual growth combined with well-considered acquisitions.

The target for organic growth is calculated on revenue compared to the previous period, except for any acquisitions.

Degree of financial leverage: Net debt / EBITDA shall not exceed a ratio of 1.5.

Enlabs seeks well considered acquisitions that can create synergies with the existing business. The size of any acquisition may vary depending on the situation, but the purchasing model shall be structured to combine equity-based payment with liquid funds. If raising debt is necessary, the company will not exceed a leverage ratio of net debt / EBITDA of 1.5.

STRATEGIC TOOLS FOR CREATING VALUE

Focus on regulated markets: Currently, approximately 90% of Enlabs gaming revenues are derived in regulated markets, primarily in the Baltic countries, where the group holds local gaming licenses and pays gaming tax. Regulation brings sustainability and credibility for licensed actors. Enlabs has acquired considerable understanding and know-how regarding operating under strict regulation and has customized a profitable business model that includes the cost of gaming taxes.

New markets: Enlabs has a positive view of market regulation and sees this as a significant opportunity for growth with sustainable revenues. One example is our successful launch in the Lithuanian market. Another example is the newly regulated Belarusian and Ukrainian markets. The group views global trends towards greater regulation of markets as a future opportunity.

Proprietary technology: For the last three years, Enlabs has invested in developing a new technology platform, which supports our multi-brand and multi-geography strategy to achieve greater scalability. Our launch in Lithuania demonstrates that the platform is fully developed and puts Enlabs in a strong position where the Group is not dependent on external IT providers. Owning our proprietary technology, the Group has the ability to maintain stable margins.