Global Gaming return to profit and revised forecasts
Global Gaming has bounced back into profit in its latest financial results, positioning the operator in a stronger position ahead of the coronavirus outbreak.
Revenue for the quarter amounted to SEK 71.8 (132.2) million. Operating profit was SEK 1.1 (-11.1) million. Profit after tax for the quarter was SEK 1.0. Revenue for the period amounted to SEK 129.7 (294.3) million.
The last 15 months have been the most difficult and challenging period I have experienced in my professional life. Tobias Fagerlund, CEO said, when I took over as CEO of Global Gaming, we were badly hurt and had just recalled our already decided proposal for share dividend to the owners. When we also lost our Swedish license in June last year, and with it 75 percent of our income, many thought that our days were numbered. Now we are back in profit again!
A year ago, we showed an ability to react quickly and forcefully in a very difficult situation. We have step by step delivered what we set out to do and constantly adapted and adjusted our operational activities. No part of the organization has remained unchanged; we have changed the technical platform, restructured the management, downsized the organization by two thirds which led to our cost base being completely different compared before.
At the same time, in the midst of everything, we have very concentrated and successfully run our remaining business. Revenues from our current markets have grown by 26 percent during the first six months of the year compared with the first half of last year and by 35 percent when comparing the second quarters of the two years. It is also gratifying to note that July’s average income per day has been about 12 % higher than the average per day during the first six months of the year. It bodes well for the rest of the year.
We have been faithful to the strategy we agreed on and it is not without pride that I now state that we have exceeded our first sub-goal of being break-even during the first half of 2020. We make an operating profit during the second quarter of SEK 1.1 million. Adjusted for costs attributable to the restructuring we carried out during the quarter and adjusted for the period’s negative currency effects, we achieve an operating profit of SEK 7.0 million during the second quarter.
Global Gaming is now ready to enter the next phase of the company’s history. In the coming month, we will launch a comprehensive sports betting offer in our existing markets and brands, and in the third quarter we will complete what we previously communicated about launching in several new markets.
I am proud and happy about the very good work we have done during the past year and look forward with excitement and confidence to the future. Not least, I look forward to an in-depth dialogue with our new major owner, the Enlabs Group. Regardless of the outcome, it is my absolute opinion that the development holds great and interesting opportunities for both companies’ shareholders and that the future of Global Gaming’s offering and brands looks brighter than in a long time.