*) For definition, see page 15
YEAR-END REPORT 2015
Comparative figures in parentheses refer to the corresponding period in the preceding year, unless otherwise stated.
Increased profit for the quarter FOURTH QUARTER 2015
The game win increased 15.0 per cent and amounted to SEK 201.1 (174.8) million. EBITDA excluding items affecting comparability increased 71.2 per cent to SEK 29.0 (17.0) million. EBIT amounted to SEK 16.8 (-110.4) million. Earnings per share amounted to SEK 0.47 (-2.80). Active customers* for the Mr Green online casino on 31 December 2015 amounted to 83,458 (80,655).
FULL-YEAR 2015
The game win increased 20.3 per cent and amounted to SEK 792.6 (659.0) million. EBITDA excluding items affecting comparability increased 1.4 per cent to SEK 136.8 (134.8) million. EBIT amounted to SEK -36.0 (-31.2) million. Earnings per share amounted to SEK -0.96 (-0.74). The Board of Directors proposes that no dividend be paid for 2015. The Annual General Meeting will be held on 21 April 2016 in Stockholm, Sweden.
SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD
The Board has decided that the Mr Green online casino will broaden its offering and launch a sportsbook during 2016. Kent Sander was elected a member of the Board at the Extraordinary General Meeting on 28 January 2016. Kent Sander’s
current assignments include Chairman of the Board of Tobii AB, and the Nomination Committee proposes that he as-sumes the position as Chairman of the Board of Mr Green & Co AB at the 2016 Annual General Meeting.
Jesper Kärrbrink will become the new CEO of the Malta-based Mr Green Ltd, and assumes the position after the summer. Mr Green was named the ‘Mobile Operator of the Year’ at the International Gaming Awards 2016.
GAME WIN (SEK m.)
EBITDA EX. ITEMS AFFECTING COMPARABILITY (SEK m.)
100
120
140
160
180
200
220
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
0
10
20
30
40
50
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
2
CEO’s comments“The online casino Mr Green increased its game win by 20.3 per cent in 2015 and experienced growth at more than double the rate prevailing on the market. The foundation for our rapid growth is that we offer our customers an attractive, secure and safe gaming experience. Growth was particularly strong outside the Nordic region and Other Europe now constitutes our largest market. Growth in the fourth quarter was 15.0 per cent. The online gaming market in Europe is estimated to have grown by 9 per cent during 2015 (H2GC, January 2016). Our long-term goal is to continue to grow at a rate faster than the market. EBITDA excluding items affecting comparability for the quarter was SEK 29.0 million, an increase of 71.2 per cent compared with the fourth quarter of 2014. EBITDA excluding items affecting com-parability for 2015 as a whole was SEK 136.8 million, an increase of 1.4 per cent compared with 2014.
Our industry is maturing and, in order to enable us to continue our rapid growth and maintain profitability, we have decided to focus on certain specific areas: products, cost control and brand-ing. During the year, we launched a new technological platform and a number of new, world-class products: a new mobile plat-form, a responsive web design, an iOS app for iPhone and iPad and a new Android app. A testament to the quality of our prod-uct investments came at the industry gala “International Gaming Awards” in February 2016, where Mr Green was named “Mobile Operator of the Year”, an award for which we are extremely grateful and proud.
In conjunction with the development of the new platform and products, we elected to temporarily curtail our marketing efforts during the second half of the year. Nonetheless, we expect that the new platform and products will, over time, result in contin-ued high growth.
The quarter, and indeed the whole year, have been characterised by cost control. Operating on regulated markets requires ever more im-provements to our KPIs, and this is an area that we continuously work to enhance and will continue do so during 2016.
In order to form the grounds to further accelerate investments in our own operations during the coming year, the Board of Direc-tors of Mr Green & Co AB proposes that no dividend be paid for the financial year 2015. The intention is for dividend payments to resume for the financial year 2016.
The Board of Mr Green Ltd has resolved to broaden Mr Green’s offering through the launch of a sportsbook during 2016. This is a natural expansion of our offering since a large number of our current casino customers also play some form of sports betting. We recognise substantial potential for Mr Green to grow on this market also.
During the fourth quarter, management was tasked with evaluating the possibility of listing the Company’s shares on the Nasdaq Stock-holm Stock Exchange. The project has been assigned a high priority and we estimate that a listing may potentially take place during 2016.
It is also with great pleasure that we can name Jesper Kärrbrink as the new CEO for the Malta-based Mr Green Ltd. Jesper is a driven leader with extensive experience of online and tradi-tional gaming companies. He will assume the role after the sum-mer, at which point the current CEO Bo Wänghammar will con-tinue with other assignments within the Mr Green Group. Dur-ing his time as CEO of Mr Green, Bo has established an organisa-tion, product and platform of absolute world-class. With these as our foundations allied with Jesper’s focus on growth, we are well-equipped to meet the challenges of the coming years.
Per Norman, CEO
MarketMARKET GROWTH
The main drivers underlying market growth in online gaming comprise the increase in Internet usage via computers, tablet devices and smartphones. This trend, combined with im-proved payment solutions and the development of e-com-merce, gaming and online entertainment, is leading players to move from gaming in physical locations to web-based gaming.
The strongest growth is taking place in mobile gaming, which includes gaming via telephones and tablet devices. The in-crease in smartphones and tablet devices with the capacity to handle online gaming and the adaptations made by game sup-pliers to their products for these platforms have contributed to the behavioural shift from desktop and physical gaming to mobile gaming.
CONTINUED GROWTH IN MOBILE GAMING
According to H2 Gambling Capital (H2GC), an industry mar-ket intelligence organisation, the European online gaming market is forecast to grow 10 per cent during 2016 (January
2016). Mobile gaming is expanding strongly and is expected to grow by about 23 per cent in Europe in 2016 (H2GC, January 2016).
By 2020, mobile gaming is expected to generate slightly more than EUR 21 billion in game win, thereby representing about 40 per cent of all online gaming (H2GC, January 2016).
COMPETITION AND REGULATIONS
Competition in the European online gaming market is in-tense. The market is fragmented with a small number of opera-tors that dominate in large parts of the European market. Mr Green assesses that competition will remain intense and that local regulations could affect the competitive landscape in the years ahead.
In general, we believe that the gaming products offered by the Mr Green Group are well positioned for continued healthy growth based on the assessed development of the future global gaming market.
*) EBITDA before items affecting comparability
Earnings trend FOURTH QUARTER 2015
The Group’s game win amounted to SEK 201.1 (174.8) mil-lion for the fourth quarter of 2015. EBITDA excluding items affecting comparability was SEK 29.0 (17.0) million.
Distributed per region, the game win was SEK 90.3 (84.7) million in the Nordic region, SEK 103.6 (89.2) million in the Rest of Europe and SEK 7.1 (0.9) million in the Rest of the World.
In the fourth quarter, cost of sales amounted to SEK 57.6 (35.1) million. Marketing expenditure was SEK 73.2 (82.0) million.
Other expenses amounted to SEK 41.3 (40.8) million. Other expenses include work performed by the Group for its own use and capitalised, personnel costs and other oper-ating expenses. In the fourth quarter, capital investments amounted to SEK 15.3 (13.1) million.
For the same period, depreciation of tangible assets and amortisation of development costs for the gaming platform (other intangible assets) amounted to SEK 12.2 (15.3) mil-lion.
FULL-YEAR 2015
The Group’s game win was SEK 792.6 (659.0) million in 2015. EBITDA excluding items affecting comparability was SEK 136.8 (134.8) million.
Distributed per region, the game win was SEK 364.7 (346.1) million in the Nordic region, SEK 407.4 (308.8) million in the Rest of Europe and SEK 20.4 (4.1) million in the Rest of the World.
Cost of sales for the year amounted to SEK 199.2 (121.5) million. Marketing expenditure was SEK 287.2 (262.4) mil-lion.
Other expenses amounted to SEK 169.4 (140.6) million. Other expenses include work performed by the Group for its own use and capitalised, personnel costs and other oper-ating expenses. Capital investments in 2015 amounted to SEK 64.5 (51.5) million.
Depreciation of tangible assets, amortisation of develop-ment costs for the gaming platform (other intangible as-sets) and customer contracts amounted to SEK 65.2 (54.0) million in 2015. Intangible assets in Social Thrills were im-paired in an amount of SEK 25.9 (0) million during the year.
GAME WIN PER REGION
PROPORTION OF GAME WIN
GAME WIN PER REGION
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Q4 2015 Q4 2014
SEK 000s
Nordic Region Rest of Europe Rest of the World
28.6%20.1%
36.4%46.9%
20.5%23.3%
14.4% 9.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4 2015 Q4 2014
Cost of sales Marketing Other expenses EBITDA*
Q4 2015 Q4 2014 2015 2014
(SEK 000s) Jan-Dec Jan-Dec
Nordic Region 90,330 84,736 364,742 346,065
Rest of Europe 103,632 89,174 407,428 308,787
Rest of the World 7,106 874 20,430 4,118
Total Game win 201,067 174,784 792,599 658,970
4
Other information MR GREEN CONTESTS OBLIGATION TO PAY TAX IN AUSTRIA
As announced previously, Mr Green Ltd conducted a self-assessment in line with Austrian tax legislation in Septem-ber 2014. The background to this move is a law stating that online gaming that takes place in Austrian territory is to be taxed at a rate of 40 per cent of the sales (gross game win). The company contests the obligation to pay tax, with reference to such instruments as the Austrian Constitution and EU legislation. The self-assessment should be viewed as a precautionary measure, since it prevents the imposition of possible tax surcharges. Mr Green Ltd initiated an appeal process regarding tax lia-bility in Austria through the Austrian courts and through a complaint to the European Commission. An appeal pro-cess is expected to take several years. Several gaming com-panies have contested the obligation to pay tax.
Mr Green Ltd has submitted an instalment plan – based on the self-assessment from September 2014 – to the Aus-trian tax authority. The self-assessment pertains to the pe-riod from January 2011 through August 2014. The instal-ment plan entails that payments of the self-assessment amount of SEK 86.7 million will be completed in 2016 and will be recognised under current liabilities in the bal-ance sheet. SEK 7.1 million was paid in the fourth quarter of 2015. Irrespective of the above, Mr Green Ltd still con-tests the obligation to pay tax. In the event that the legal action is successful, it is possible that the amounts paid plus interest could be recovered.
As of September 2014, Mr Green Ltd’s Austria-related gaming sales are entered in the tax returns on a monthly basis in a total tax amount of SEK 0. As of September 2014, the tax, and accordingly the cash flow, will be zero until a final ruling on this case in court.
Given that the legal processes will most likely continue for an extended period and as an additional precaution-ary measure, Mr Green Ltd is making an ongoing provi-sion for an amount corresponding to the tax in the in-come statement, which for the September 2014 to De-cember 2015 period had an earnings impact SEK 93.3 million. The amount is recognised in the current quarter under the item “of which betting duties in Austria.” This amount was SEK 18.8 million for the fourth quarter of 2015. A total of SEK 132.5 million has been reserved in the income statement for the self-assessment period. Ac-cordingly, earnings have been charged with a total of SEK 225.8 million. Notwithstanding the above, the company still contests the obligation to pay tax and has not altered its assessment of the possibility of a successful conclusion to the processes.
After the end of the second quarter of 2015, the Austrian tax agency began an audit of the self-assessment period.
The audit is expected to be completed in the first half of 2016.
REGULATORY CHANGES
Mr Green is of the opinion that a number of European countries will re-regulate and legislate on online gaming over the next few years. The company welcomes this de-velopment and, for some time now, has been preparing for a move towards re-regulated markets and the possible taxes and fees this may involve.
COST OF SALES
Cost of sales includes licensing fees to game suppliers, betting duties, costs for payment services and the cost of fraud. The proportion of betting duties is growing due to Mr Green Ltd’s licences in the UK and Italy, and the VAT imposed on online gaming in certain EU markets as of 1 January 2015. Costs for betting duties are therefore rec-ognised separately in the income statement, on the “of which, betting duties” row. Betting duties in Austria are reported in the same manner.
CASH AND CASH EQUIVALENTS
At the end of the period, cash and cash equivalents to-talled SEK 190.3 (155.0) million. Cash and cash equiva-lents are defined as funds deposited with banks and cur-rent balances with payment providers for as yet unsettled payments from customers. The company has no liabilities to credit institutions.
EQUITY
Group equity was SEK 640.8 (738.0) million at the end of the period, corresponding to SEK 17.88 (20.59) per share.
CUSTOMER BALANCES
Customer balances totalled SEK 18.6 (21.2) million.
PERSONNEL
At the end of the period, the Group had 161 (152) em-ployees. The average number of full-time equivalents in the Group during the fourth quarter was 163 (149), of which 128 (125) were stationed in Malta. At the end of the period, the Group employed 32 (31) full-time con-sultants.
PARENT COMPANY’S RESULTS
During the quarter, revenue for the Parent Company amounted to SEK 1.2 (1.0) million and the loss to SEK 1.8 (profit 56.6) million.
Revenue for full-year 2015 amounted to SEK 4.5 (2.9) million and the loss to SEK 26.9 (profit 36.3) million. Eq-uity was SEK 674.8 (748.3) million.
5
OWNERSHIP STRUCTURE
The Parent Company’s share is listed on AktieTorget, Stockholm under the ticker MRG. On 31 December 2015, the company had 4,885 (3,855 at 30 September 2015) shareholders. Major shareholders (owners with more than 10 per cent of the shares and votes) were Hen-rik Bergquist and companies with 18.7 per cent, Hans Fa-jerson and companies with 16.6 per cent and Fredrik Sid-falk and companies with 10.5 per cent of the shares and votes.
SHARES OUTSTANDING
The company holds no treasury shares. The total number of shares and votes outstanding in Mr Green & Co AB is 35,849,413.
In March 2014, 1,400,000 warrants were issued following a resolution passed on 19 March 2014 at the Extraordi-nary General Meeting. The exercise price was set at SEK 68 and the exercise period is 20 March 2017 to 20 April 2017. A total of 1,110,000 warrants had been acquired at 31 December 2015.
SIGNIFICANT EVENTS AFTER THE CLOSE OF THE PERIOD
Kent Sander was elected a member of the Board at the Extraordinary General Meeting on 28 January 2016 and it is intended that he will take over the position of Chair-man of the Board at the 2016 Annual General Meeting.
RISKS AND UNCERTAINTIES
The Group operates in a legal environment with legal and regulatory risks where individual countries and inter-national organisations are currently developing the rules of operation. As this progresses, it is probable that the Group will experience more stringent requirements in terms of compliance, laws and regulations as well as in-creased tax costs. The Group is continuously monitoring the situation and adjusting its offering and markets to manage this risk. In line with this practice, neither does the company market the website in, for example, the US nor accept players residing in the US.
There is also a trend in Europe concerning new proce-dures for betting duties and VAT issues that will entail some form of impact on the company’s operations. The company is monitoring developments closely and adapt-ing its operations according to potential changes in con-ditions to comply with all laws and regulations. However, it should be noted that there may be instances when local laws and regulations conflict with, for example, EU laws, which take precedence. In connection with such matters, the company engages the services of leading legal exper-tise and proceeds on the basis of the prudence principal, without renouncing commercial opportunities as a conse-quence. For a detailed description of risks and other un-certainties, refer to the 2014 Annual Report.
RELATED-PARTY TRANSACTIONS
The company and/or its subsidiaries have service agree-ments with several companies, which are controlled by Board members. Transactions with related parties are priced at market rates. The total amount for services re-ceived during the quarter was SEK 0.5 (1.7) million.
OUTLOOK
The company has decided not to publish any forecast.
2016 ANNUAL GENERAL MEETING
The Annual General Meeting of Mr Green & Co AB will be held on 21 April 2016 in Stockholm. Shareholders wishing to present proposals to the Nomination Commit-tee can do so via e-mail to [email protected] or via post to Mr Green & Co AB, Sibyllegatan 17, SE-114 42 Stock-holm, Sweden.
DIVIDENDS
The Board of Directors proposes that the Annual General Meeting held on 21 April 2016 resolve that no dividends be paid for the 2015 financial year, neither on the basis of traditional dividends nor on the basis of transfers to shareholders though an obligatory share-redemption pro-gramme. The reason is that the company intends to make investments in its operations. The intention is to return to paying dividends from the 2016 financial year. Mr Green & Co’s dividend policy states that dividends are to be paid and/or share buybacks of up to 50 per cent of the Group’s free cash flow are to be carried out unless such cash and cash equivalents are deemed necessary for the fulfilment of the company’s strategy or to secure ex-tra reserves if capital market conditions so demand. The Board’s proposal will be presented in full well in advance of the Annual General Meeting.
REVIEW
This report has not been subject to review by the com-pany’s auditors.
6
GENERAL INFORMATION
Mr Green & Co AB (publ), the Parent Company, Corpo-rate Registration Number 556883-1449, operates through subsidiaries or affiliated companies in the software devel-opment, consulting and support activities aimed at the gaming industry on the Internet. The Parent Company provides and sells services to Group companies relating to internal administration and management services. The Parent Company and its subsidiaries are collectively re-ferred to as the Group. Operations are primarily carried out in companies in Malta and Sweden.
The Parent Company is a limited liability company regis-tered and based in Stockholm. The address of the Com-pany’s registered office is Sibyllegatan 17, SE-114 42 Stockholm, Sweden.
The Parent Company’s share is listed on AktieTorget, Stockholm.
REPORTING CALENDAR
Mr Green intends to publish financial reports as follows:
The 2015 Annual Report will be published on 23 March 2016.
The 2015 Annual General Meeting will be held on 21 April 2016.
The first quarter report for 2016 will be published on 29 April 2016.
The second quarter report for 2016 will be published on 20 July 2016.
The third quarter report for 2016 will be published on 28 October 2016.
CONTACTS
Per Norman, CEO [email protected] +46 (0) 722 30 9191
Simon Falk, CFO [email protected] +46 (0) 70 525 0705
Frida Adrian, Director of Investor Relations [email protected] +46 (0) 70 930 9324
Mr Green & Co AB (publ) Sibyllegatan 17, SE-114 42 Stockholm, Sweden Registered office: Stockholm, Sweden Corporate registration number: 556883-1449 www.mrgco.se
Stockholm, 19 February 2016
Henrik Bergquist Andrea Gisle Joosen Mikael Pawlo Board member Board member Board member
Kent Sander
Tommy Trollborg Per Norman
Board member Chairman CEO
This English translation is only for reference purposes. When/if there are any discrepancies between original Swedish ver-sion and the English translated version, the Swedish version shall prevail
7
Consolidated Income Statement
2015 2014 2015 2014
(SEK 000s) Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Game Win 201,067 174,784 792,599 658,970
of which Mobile* 63,019 42,123 229,453 138,904
Other revenue 0 3 0 398
Total revenue 201,067 174,787 792,599 659,368
Cost of sales -57,603 -35,088 -199,222 -121,487
of which betting duties in Austria -18,776 0 -36,093 0
of which betting duties in other markets -6,597 -2,507 -29,241 -3,734
Work performed by the Group for its own use and Capitalized 12,795 11,901 49,034 43,602
Marketing -73,191 -81,978 -287,171 -262,439
Personnel costs -24,743 -24,216 -95,009 -78,607
Other operating expenses -29,309 -28,454 -123,469 -105,591
EBITDA before items affecting comparability 29,015 16,952 136,761 134,846
Items affecting comparability** 0 -112,081 -81,631 -112,081
EBITDA 29,015 -95,129 55,130 22,765
Depreciation and amortisation -12,201 -15,318 -65,247 -53,968
Impairment 0 0 -25,917 0
Earnings before interest and tax (EBIT) 16,814 -110,447 -36,034 -31,203
Financial income 29 79 -17 427
Financial expenses 5 -10 -49 -189
Profit before tax 16,848 -110,378 -36,100 -30,965
Income Tax -105 9,838 1,668 4,445
Profit (loss) for the period 16,743 -100,540 -34,433 -26,520
Result for the period attributable to: 0 0 0 0
- Owners 16,743 -100,540 -34,433 -26,520
Capital investments -15,325 -13,093 -64,467 -51,532
Weighted average number of shares 35,849,413 35,849,413 35,849,413 35,849,413
Earnings per share before dilution (SEK) 0.47 -2.80 -0.96 -0.74
Earnings per share after dilution (SEK) 0.47 -2.80 -0.96 -0.74
Selected items in relation to revenue: 0.0% 0.0% 0.0% 0.0%
Cost of sales -28.6% -20.1% -25.1% -18.4%
Cost of sales excluding betting duties -16.0% -18.6% -16.9% -17.9%
Marketing -36.4% -46.9% -36.2% -39.8%
Personnel costs -12.3% -13.9% -12.0% -11.9%
Other operating expenses -14.6% -16.3% -15.6% -16.0%
EBITDA before items affecting comparability 14.4% 9.7% 17.3% 20.5%
Capital investments -7.6% -7.5% -8.1% -7.8%
* Of which mobile has been re-calculated for periods before Q2-15 to more accurately
reflect the effects of bonuses and jackpots on mobile game win
** Refer to page 14, for more information
8
Consolidated Statement of Comprehensive Income
2015 2014 2015 2014
(SEK 000s) Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Profit (loss) for the period 16,743 -100,540 -34,433 -26,520
Other comprehensive income: 0 0 0 0
- Exchange-rate difference on consolidation -20,774 479 -26,884 1,232
- Exchange-rate difference on fixed assets – 17,532 10,756 40,689
Comprehensive income for the period -4,031 -82,530 -50,561 15,402
Comprehensive income attributable to: 0 0 0 0
- Owners -4,031 -82,530 -50,561 15,402
9
Consolidated Balance Sheet
2015 2014
(SEK 000s) 31 Dec 31 Dec
Customer contracts – 7,197
Brand 290,495 298,700
Other intangible assets 81,175 106,988
Goodwill 499,473 507,753
Equipment 4,496 4,090
Non-current assets 875,639 924,728
Other receivables 11,042 5,242
Prepaid expenses 5,201 5,821
Cash and cash equivalents 190,281 154,954
Current assets 206,525 166,017
Total assets 1,082,164 1,090,745
Share capital 35,849 35,849
Share premium reserve 680,773 680,806
Translation reserve 51,924 68,053
Retained earnings -127,720 -46,683
Equity* 640,826 738,024
Deferred tax liability** 104,040 117,640
Provision game tax Austria 112,870 79,507
Non-current liabilities 216,911 197,146
Trade creditors 33,246 26,339
Customer balances 18,579 21,198
Other payables 10,421 10,262
Accruals 68,854 61,379
Provision game tax Austria 86,702 30,058
Current tax payable 6,625 6,339
Current liabilities 224,427 155,574
Total equity and liabilities 1,082,164 1,090,745
*) Refer to page 14, for more information
**) Deferred tax liability derived from the acquired customer contracts, brand and other intangible assets. The Company's cash flow is
affected only by a sum of SEK 2.2 million.
10
Consolidated Statement of Changes in Equity
2015 2014 2015 2014
(SEK 000s) Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Opening balance, total equity 644,857 820,555 738,024 768,620
Profit (loss) for the period 16,743 -100,540 -34,433 -26,520
Other comprehensive income: 0 0 0 0
- Exchange-rate difference on consolidation -20,774 478 -26,884 1,232
- Exchange-rate difference on fixed assets – 17,532 10,756 40,689
Total comprehensive income -4,031 -82,530 -50,561 15,402
Transactions with owners: 0 0 0 0
- Proceeds from issue of warrants – – -33 607
- Dividend by redemption of shares – – -46,604 -46,604
Total transactions with owners – – -46,638 -45,997
Closing balance, total equity 640,826 738,024 640,826 738,024
11
Consolidated Cash Flow Statement
2015 2014 2015 2014
(SEK 000s) Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Profit before taxation 16,848 -110,378 -36,100 -30,965
Adjusted for: 0 0 0 0
- Depreciation and amortisation 12,201 15,318 91,164 53,968
- Net interest income(expense) 15 -69 -21 -238
- Net unrealised exchange rate differences -1,724 -251 -1,310 28
- Provision game tax Austria 18,872 108,083 117,724 108,083
- Payment of accrued Austrian gaming tax -7,134 – -22,080 –
Changes in working capital 24,061 17,491 8,440 18,028
Income tax paid -2,049 -37 -8,479 -1,625
Net interest received / (paid) -15 100 21 -79
Cashflow from operating activities 61,075 30,257 149,360 147,200
Cashflow from investing activities: 0 0 0 0
- Cash paid to acquire subsidiaries – – -8,044 -6,601
- Cash acquired through acquisitions – – – 969
- Purchase of intangible fixed assets -14,986 -11,776 -60,593 -46,094
- Purchase of tangible fixed assets -338 -1,317 -3,873 -5,438
Cashflow from investing activities -15,325 -13,093 -72,511 -57,164
Cashflow from financing activities: 0 0 0 0
- Repayment of loan balances – – – -1,983
- Proceeds from issue of warrants – – -33 607
- Dividend by redemption of shares – – -46,604 -46,604
Cashflow from financing activities – – -46,637 -47,980
Change in cash and cash equivalents 45,751 17,164 30,212 42,056
Exchange-rate differences 5,394 1,278 5,115 1,731
Cash and cash equivalents at the beginning of the period 139,136 136,512 154,954 111,167
Cash and cash equivalents at the end of the period 190,281 154,954 190,281 154,954
12
Consolidated Income Statement per quarter
2015 2015 2015 2015 2014 2014 2014 2014
(SEK 000S) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Game win 201,067 201,554 194,786 195,192 174,784 168,546 161,402 154,238
of which Mobile* 63,019 62,625 53,391 50,418 42,123 36,339 33,281 17,474
Other revenue 0 0 0 0 3 0 3 392
Total revenue 201,067 201,554 194,786 195,192 174,787 168,546 161,405 154,630
Cost of sales -57,603 -59,668 -40,671 -41,280 -35,088 -30,432 -28,832 -27,135
of which betting duties in Austria -18,776 -17,317 – – – – – –
of which betting duties other markets -6,597 -8,117 -7,735 -6,792 -2,507 -370 -288 -569
Work performed by the Group for its own use and Capita 12,795 11,468 12,528 12,244 11,901 11,251 12,502 7,948
Marketing -73,191 -56,596 -67,176 -90,209 -81,978 -58,821 -59,274 -62,366
Personnel costs -24,743 -25,632 -23,528 -21,105 -24,216 -21,093 -17,604 -15,694
Other operating expenses -29,309 -30,316 -33,425 -30,420 -28,454 -27,068 -29,711 -20,358
EBITDA before items affecting comparability 29,015 40,810 42,514 24,422 16,952 42,383 38,486 37,025
Items affecting comparability** – -81,631 – – -112,081 – – –
EBITDA 29,015 -40,821 42,514 24,422 -95,129 42,383 38,486 37,025
Depreciation and amortisation -12,201 -16,001 -17,561 -19,484 -15,318 -13,976 -12,996 -11,678
Impairment – -25,917 – – – – – –
Earnings before interest and tax (EBIT) 16,814 -82,739 24,953 4,938 -110,447 28,407 25,490 25,347
Financial income 14 -6 2 7 79 341 3 4
Financial expenses 5 -27 -46 -7 -10 492 -345 -326
Profit before tax 16,833 -82,772 24,909 4,938 -110,378 29,240 25,148 25,025
Income Tax -105 6,840 -4,852 -216 9,838 -1,827 -1,921 -1,645
Profit / (loss) for the period 16,728 -75,931 20,057 4,722 -100,540 27,413 23,227 23,380
Capital investments -15,325 -17,126 -17,469 -14,547 -13,093 -12,995 -15,579 -9,865
Number of shares 35,849,413 35,849,413 35,849,413 35,849,413 35,849,413 35,849,413 35,849,413 35,849,413
Earnings per share (SEK) before dilution 0.47 -2.12 0.56 0.13 -2.80 0.76 0.65 0.65
Earnings per share (SEK) after dilution 0.47 -2.12 0.56 0.13 -2.80 0.76 0.65 0.65
0 0 0 0 0 0 0
Cost of sales -28.6% -29.6% -20.9% -21.1% -20.1% -18.1% -17.9% -17.5%
Cost of sales excluding betting duties -16.0% -17.0% -16.9% -17.7% -18.6% -17.8% -17.7% -17.2%
Marketing -36.4% -28.1% -34.5% -46.2% -46.9% -34.9% -36.7% -40.3%
Personnel costs -12.3% -12.7% -12.1% -10.8% -13.9% -12.5% -10.9% -10.1%
Other operating expenses -14.6% -15.0% -17.2% -15.6% -16.3% -16.1% -18.4% -13.2%
EBITDA before items affecting comparability 14.4% 20.2% 21.8% 12.5% 9.7% 25.1% 23.8% 23.9%
Capital investments -7.6% -8.5% -9.0% -7.5% -7.5% -7.7% -9.7% -6.4%
Active customers 83,458 73,689 73,279 86,134 80,655 66,266 63,110 72,503
Deposits 550,561 567,795 550,553 537,220 484,792 421,926 407,855 391,064
* Of which mobile has been re-calculated for periods before Q2 2015 to more accurately reflect the effects of bonuses and jackpots on mobile game win
** Refer to page 14, for more information
Selected items in relation to revenue, active customers and deposits:
13
Income Statement Parent Company
Balance Sheet Parent Company
2015 2014 2015 2014
(SEK 000s) Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Revenue 1,211 1,023 4,532 2,908
Expenses -8,393 -7,130 -33,304 -27,963
EBITDA -7,183 -6,107 -28,773 -25,055
Dividend, financial net, depreciation 5,338 62,724 1,917 61,330
Profit (loss) for the period -1,845 56,617 -26,855 36,275
2015 2014
(SEK 000s) 31 Dec 31 Dec
Non-current assets 714,732 710,764
Current assets 12,022 45,538
Total assets 726,755 756,302
Restricted equity 35,849 35,849
Non-restricted equity 638,916 712,408
Other liabilities 51,989 8,045
Total Equity and Liabilities 726,755 756,302
14
Accounting policies
The consolidated financial statements on the previous pages of this interim report were prepared in accordance with IFRS as adopted by the EU, applying IAS 34 Interim Financial Reporting. For the Parent Company, the interim report was prepared in accordance the Swedish Financial Reporting Board’s recommendation RFR 2, applying Chapter 9 of the Annual Accounts Act, Interim reports. With the exception of the disclosures made regarding non-current assets, no new accounting policies applicable as of 2015 or voluntary amendments have changed the Group’s or the Parent Company’s accounting policies and calcula-tion methods compared with the most recent annual re-port. No new accounting policies with prospective applica-tion have been applied in advance.
NON-CURRENT ASSETS
In accordance with IAS 21, non-current assets were trans-lated from EUR to SEK at the closing-day rate. Following on from this, a correction of an error in the Group’s non-current assets was carried out in the third quarter of 2015. This resulted in customer contracts, brands, other intangi-ble assets and goodwill in SEK increasing SEK 77.8 million, which was offset in the translation reserve in equity by SEK 65.5 million and under deferred tax liabilities by SEK 12.3 million. The comparative periods have been translated in a corresponding manner using the applicable closing-day rates.
ITEMS AFFECTING COMPARABILITY
Pertains to items of a non-recurring nature or that do not directly relate to the Group’s normal operations. The re-porting of such items together with other items in the in-come statement would impede the comparison with other periods and, for an outsider, make it more difficult to as-sess the Group’s performance.
FINANCIAL INSTRUMENTS – FAIR VALUES
All of Mr Green’s financial instruments, for which the fair value can be reliably established, are short-term in nature and the recognised values represent reasonable approxi-mations of their fair values.
2015 2014
(000s) Jan-Dec Jan-Dec
Adjusted provision, self-assessment period, Austria 24,431 108,083
Ongoing provision, Austria Sep 2014-Jun 2015 57,200 –
Restructuring costs – 3,998
Total items affecting comparability 81,631 112,031
15
Definitions ACTIVE CUSTOMER
A customer is defined as active after gaming with real money during the period, through deposit in the cus-tomer’s account, but also after playing with winnings of real money after free spins and/or bonuses provided by Mr Green to the customer.
AVERAGE NUMBER OF EMPLOYEES
Average number of employees during the period ex-pressed as full time equivalent (FTEs).
AVERAGE NUMBER OF SHARES OUTSTANDING
Weighted average number of shares outstanding during the period, taking into account the bonus issue and new share issues.
DEPOSITS
Funds deposited in customers’ accounts. Earnings per share Income after tax, divided by the weighted average number of shares outstanding during the period.
EBIT
Earnings before interest and tax.
EBITDA
Earnings before interest and tax, depreciation, amortisa-tion and impairment.
EQUITY PER SHARE
Equity in relation to the number of shares outstanding at the end of the period.
GAME WIN
The total revenue from customers on all games less all win-nings payable to players, bonuses allocated and jackpot contributions.
ITEMS AFFECTING COMPARABILITY
Pertains to items of a non-recurring nature or that do not directly relate to the group’s normal operations. The re-porting of such items together with other items in the in-come statement would impede the comparison with other periods and, for an outsider, make it more difficult to as-sess the group’s performance.
NUMBER OF EMPLOYEES AT THE END OF THE PERIOD
Number of employees at the end of the last month of the period.
NUMBER OF (REGISTERED) SHAREHOLDERS
Number of shareholders directly registered and sharehold-ers listed through a nominee in the shareholders’ register kept by Euroclear Sweden AB.
OWNERS
Owners refers to the Parent Company’s shareholders.