Interim report January – June 2020

2020-08-20

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Second quarter: 1 April – 30 June 2020

  • Revenues totalled EUR 6.1 million (9.4), a 35% decrease.
  • Sustainable revenues amounted to 85%.
  • Total active customers were 37,184 (37,753), a decrease of 2%.
  • Deposits totalled EUR 20.2 million (27.9), a 28% decrease.
  • Gaming margin amounted to 3.8% (4.6).
  • EBITDA was EUR 0.46 million (2.51), EBITDA margin was 7.5% (26.7).
  • EBIT was EUR -0.26 million (2.01), EBIT margin was -4.2% (21.4).
  • Net profit totalled EUR 0.48 million (2.03), net profit margin was 7.9% (21.6).
  • EPS decrease of 77% to 0.007 EUR per share (0.032).

6-month period: 1 January – 30 June 2020

  • Revenues totalled EUR 16.6 million (18.4), a 10% decrease.
  • Sustainable revenues amounted to 91%.
  • Total active customers were 56,043 (48,950), an increase of 14%.
  • Deposits totalled EUR 53.5 million (54.4), a 2% decrease.
  • Gaming margin was 4.2% (4.6).
  • EBITDA totalled EUR 3.24 million (5.30), EBITDA margin was 19.5% (28.8).
  • EBIT was EUR 1.93 million (4.33), EBIT margin was 11.6% (23.5).
  • Net profit totalled EUR 2.64 million (4.33), net profit margin was 15.9% (23.5).
  • EPS decrease of 40% to 0.042 EUR per share (0.069).

Events during the period

  • Latvia suspended all gaming licenses for two months.
  • Acquired 29.9% of Global Gaming 555 AB.
  • Launched the new brand Laimz in Latvia.
  • Introduced eSports betting with EveryMatrix.
  • PG Soft content exclusive to Latvia.
  • Joined Playtech’s iPoker network
  • Financial targets extended to 2021.

Events after the period

  • Ukraine adopted new gaming law.
  • Optibet launched in Latin America.
  • Launched virtual sports vertical.
  • CFO Adam Jonsson announced that he will leave Enlabs in October.
  • Increase in number of shares after finalized share issue.
  • July gaming revenues up 11% YoY.

“During Q2 2020 Enlabs demonstrating its ability to adapt and evolve. Due to the COVID-19 outbreak, the Latvian parliament suspended all gaming licenses in the country from 8 April to 10 June. Retail operations in Lithuania have also been suspended for the greater part of the quarter. We cut back on marketing communication in both Estonia and Lithuania. Despite these temporary disruptions, Enlabs recorded EUR 6.1 million revenue, EUR 0.5 million EBITDA, and EUR 0.5 million net profit with positive operating cash flow.

Enlabs’ customers have welcomed our return in Latvia with several daily activity records proving that regulated local operators can always better cater for customer demands. This also showed more broadly than ever that balanced regulation aligns the interests of players, operators and government authorities. The regulatory landscape has stabilized in all three Baltic countries with their COVID-19 related restrictions lifted. All Enlabs brands and retail betting shops are now fully operational. The Enlabs team stayed strong together. We avoided job cuts and calmly switched to remote work. Since June, all Enlabs offices are open with safety measures in place. People can choose to work from the office or from home with 75% opting to return to their offices. Only essential business travel is permitted.

Considering the market recovery in June, the return of sports activity, and our packed roadmap going forward, we are looking toward growth in Q3. In July Enlabs’ consolidated gaming revenue was up 11% compared to the same period a year ago. Business is back on a strong momentum! So, let’s play!” Says CEO and Group president George Ustinov.

 

The report is attached this press release and is available at https://enlabs.com/en/press/reports

A presentation of the report will be held today at 10:00 CET through the link: https://www.redeye.se/events/789014/enlabs-live-q-report-and-qa

 

For more information, please contact:

Enlabs AB

George Ustinov, CEO and Group president

[email protected] / +371 29424175

Adam Jonsson, CFO

[email protected] / +46 73 8200058

About ENLABS

Enlabs stands for Entertainment Laboratories. We are a company that creates entertainment through innovative thinking within gaming. The corporate group has offices in Tallinn, Riga, Vilnius, Malta, Marbella, Minsk and Stockholm. The operating subsidiaries hold national licenses for their operations and the Group employs approximately 200 employees. Enlabs AB (NLAB) is listed at Nasdaq First North Growth Market with Redeye AB as Certified Adviser: [email protected], +46 (0)8 121 576 90.  

For more information, visit enlabs.se

ENLABS AB is obliged to publish the above information in accordance with the EU’s Market Abuse Regulation. The information was provided by the above contact person for publication at 08:00 CET on 20 August 2020.

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