Key Facts for the 4^th Quarter 2022 (1^st October 2022 – 31^st December 2022)

Challenging Quarter with Positive Outlook

All figures are compared to the same quarter last year if not explicitly stated otherwise

• Revenues decreased by 15.73 % to €8,105,830 (€9,618,463).
• EBIT decreased by 81.33% to €271,192 (€1,452,790).
• EBIT margin of 3.35% (15.10%).
• Customer deposits decreased by 23.07% to €15,775,595 (€20,507,189).
• 62,339 new registered customers (64,604), decrease of 3.51%.
• 11,725 new depositing customers (15,551), decrease of 24.6%.
• Earnings per share of minus €0.0331 (€0.0006).

• Premiergaming Ltd, the Group’s subsidiary focusing on Northern Europe, represented 5.05 % of the Group’s revenues in Q4 2022.

                                                             Trading update Q1 2023

The trading update is an indication of how the first quarter 2023 has started, however it is not a revenue forecast for the quarter.

The average daily net gaming revenue in the first 45 days of Q1 2023 was 9% higher comparing to the average daily net gaming revenue in Q4 2022.

The average daily net gaming revenue in the first 45 days of Q1 2023 was 3% higher comparing to the average daily net gaming revenue of the full first quarter of 2022.

                                                               Events during Q4 2022

• The B-to-B partnership casino project announced earlier, was launched mid-December 2022 on the latest version of the Group’s proprietary I-Gaming platform. The launch has been successful and represented 5% of the total Net Gaming Revenues in January 2023.
• During the quarter the Group continued to terminate non-profitable affiliate partnerships, affecting the revenues in the quarter.
• During the quarter extra ordinary cost of €2,453,364 (mainly bad debts) were identified, which are fully accounted for in Q4 2022.  

                                                                     Events after Q4 2022

• The Board of Directors does not recommend distribution of a dividend for the fiscal year 2022. While the available cashflow from operations has improved in the fourth quarter by19.42% from €1,000,656 at the end of Q3 2022 to €1,195,029 at the end of Q4 2022, given the challenging 2022 and investments in new innovative projects, the Board does not propose a dividend.
• The short-term unsecured borrowing of €1,000,000 obtained last year is now expected to be repaid during 2023
• The B-to-B casino project previously announced to be launched mid-Q1 2023 is now expected to be launched and start generating revenues by the end of Q1 2023.
• The Group has signed a new B-to-B cooperation agreement for another casino project based on the latest version of the Group’s proprietary I-Gaming platform with new unique features. The project is expected to go live and start generating revenues in Q2 2023.

Key Facts for 2022 (1^st January 2022 – 31^st December 2022)

Growth in New Registered Customers

All figures are compared to 2021 if not explicitly stated otherwise

• Revenues decreased by 27.68% to €31,389,158 (€43,404,095).
• EBIT decreased by 91.41% to €776,313 (€9,041,809).
• EBIT margin of 2.47% (20.83%).
• Customer deposits decreased by 29.96% to €64,904,472 (€92,663,807).
• 12.26% increase in newly registered customers 278,898 (248,433).
• 52,813 new depositing customers (82,246), decrease of 35.79%.
• Earnings per share of minus €0.0453 (€0.0959).

                                                              Comments from the CEO Thomas Kalita

2022 was a very challenging year. I am proud of all my talented colleagues, as all the hard work starts to bear fruit, and Q1 2023 has started positively, both when comparing its revenues to Q1 2022 and to Q4 2022.

In brief, this is what we have done in 2022:

• We re-positioned the Group’s proprietary I-Gaming platform – the Group’s fully owned proprietary platform is a strong asset. During 2022 the Group invested heavily its existing resources into a new state of the art functions and features, resulting in a competitive, cost-effective and user-focused I-Gaming platform with a high end-user entertainment value. The first proof of the updated and new I-Gaming platform’s performance came with the launch of the first new B-to-B partner's casino on the platform mid-December 2022. So far, this launch has been a success, with revenues from this launch already representing 5% of the total Net Gaming Revenues in January. New B-to-B launches will follow and existing B-to-B partnerships are being upgraded to the new I-Gaming platform.

• We increased the B-to-B offerings’ focus – one B-to-B casino project was, as mentioned already, launched in December and two more will be launched in the end of Q1 and beginning of Q2 respectively. We will continue to push for more such projects and our sales representatives are pursuing several leads.

• We tightened up cost controls – we have re-negotiated several supplier deals and we will continue improving them further. We have closed down several costly affiliate partnerships, prioritising long term sustainable business over short time revenues at high cost. We have continued to uphold our earlier decision and policy of lowering marketing investment in Sweden with respect to PremierGaming Ltd, the Group’s subsidiary focusing mainly on Sweden, since this company continues to be discriminated against in Sweden by being denied access to SWISH, despite being a licensed operator in Sweden duly paying Swedish gaming taxes. Moreover, we have implemented more stringent policies on supplier due diligence and proactive and agile supplier cost and doubtful debts controls.

• We further invested in people – the investment in a strengthen management team in early 2022 was fundamental for our plans of being a strong player within our industry. We continued investing in people and their training and certification, including in such areas as Responsible Gaming and AML.

• We embraced new business verticals – the Group continue to invest in two of the Group’s relatively new business areas, namely the Sportsbook offer and the Joint Venture within the field of affiliate marketing in South America. As the Group increases its focus on B-to-B offerings, maintaining a competitive Sportsbook as part of its offering becomes an important strategic factor.

In summary, all these efforts aim at one goal: to re-inject innovation - the trademark that made us one of the fastest growing listed I-Gaming companies in the world a few years ago - back into the Group’s DNA