Acroud’s second quarter revenue amounted to an all-time high of EUR 10 281 (7 200) thousand, corresponding to a growth of 43% and an organic growth of -26.5%.

Adjusted EBITDA (before items affecting comparability) was EUR 1 614 (1 802) thousand decreasing by 10% year-on-year. EBITDA amounted to EUR 588 (1 802) thousand, decreasing by 67% year-on-year.

Profit after tax was EUR -21 258 (1 248) thousand. Adjusted profit after tax (before items affecting comparability and currency effects) was EUR -931 (588) thousand. Items affecting comparability include an impairment charge of EUR 20 million.

Revenue amounted to an all-time high of EUR 19 581 (14 203) thousand, corresponding to a growth of 38% and an organic growth of -23.8%.

Adjusted EBITDA (before items affecting comparability) was EUR 3 755 (3 583) thousand, increasing by 5% year-on-year.  EBITDA amounted to EUR 2 702 (4 050) thousand, decreasing by 33% year-on-year.

CEO comments: Towards strengthening the balance sheet, reducing debt and securing cash flows Q2 2023 marked a new all-time high for both revenues and New Depositing Customers (NDCs). Revenues amounted to EUR 10 281 thousand (compared to EUR 7 200 thousand in Q2 2022), and NDCs amounted to 117,365 compared to the 35,134 of the same quarter last year.

The quarter’s results showed weaker margins, in part due to increased investments in the media business and one-off costs incurred during the quarter, amounting to EUR 1 026 thousand.

After the reporting period, the group engaged in a series of transactions involving both changes to earn-out agreements and reduced future commitments for Acroud. This concerns both additional purchase prices to be paid and the removal of the future obligation to acquire additional shares in current subsidiaries.

Through these agreements, Acroud will lower its debt excluding the bond from EUR26 million to EUR6.5 million and will reduce short-term cash outflow from just over EUR6 million to approximately EUR2.5 million.

Furthermore, the main shareholders, Trottholmen AB and Strategic Investment, will subscribe to a new issue of SEK 22 million to strengthen the company’s financial position.

We have also implemented further cost savings in our old core business, where we have now moved the operations and development of our casino products, to a team with whom we have previously cooperated successfully.

The reason for this is that our own casino products have seen a continuous decline in revenues over the last 5 years and we have not been able to reverse the trend despite the various attempted leadership and strategy changes. So based on this, we decided it was time for a drastic change, a change where no “legacy” and sacred cows burden the way of thinking. As a result of this, we are lowering our operating costs while giving our partners a clear incentive to grow our casino sites since they share in the profitability increases. We expect to see the result of this and the investments in the media business during Q4 2023 and onwards.

The fact that our old core business has been performing so poorly for a long time has also led us to the decision to impair Goodwill by a further EUR 20 million.

Acroud now consists of a group of companies, where all staff have both passion and clear incentives to drive each company successfully and contribute to Acroud’s improved profitability and increased shareholder value.

Following the mentioned decisions that have been taken in this quarter, we have now “cleaned up” and look forward to taking the company forward and upwards from this platform.

All in all, I am grateful to everyone who has contributed to the above changes being implemented. We have been able to achieve this thanks to the flexibility and commitment of all our employees, the founders of PMG and TGC’s desire to jointly build a successful company, our two largest shareholders who strengthen our cash position, and our bondholders who have constructively supported this solution.