Carnegie Investment Bank
Angler Gaming
Date Title Alternative
2023-11-17 Still heading in the right direction Show Close
2023-08-22 Further healthy growth in the quarter Show Close
2023-05-17 The turnaround begins in earnest Show Close
2023-02-21 Gross margins remain depressed, but trading update offers a glimmer of light Show Close
Research | 21 Feb 2023 | Angler Gaming

Gross margins remain depressed, but trading update offers a glimmer of light

 

Gross margins under pressure from end of affiliate partnerships

Revenues totalled EUR 8.1m in Q4, representing growth of -15.7% y/y. EBIT came in at EUR 0.3m, implying a margin of 3.4%. EBIT is feeling the pressure as gross margins dropped to 23% from 25% in Q3 2022 and 35% during 2021. Margins are being squeezed after the company terminated unprofitable affiliate partnerships. We believe this will also impact growth. Q1 2023 has started somewhat ahead of our expectations though, with growth of 9% q/q. A  number of B2B projects have also been launched during Q1.

Emerging markets exposure

Previously, Angler offered high, profitable growth through exposure to emerging i-gaming markets. Recent quarters have been plagued by operational problems that have put significant pressure on both margins and growth, however. We see some potential in Angler’s new strategic move of selling its services B2B. The onus is on the company, however, to reverse this negative trend.

 

Still cautious on the share

Following the poor development of Angler’s results, we cut our revenue estimates by 7% on average for 2023–2024. This is in spite of the trading update showing small stepstowards a return to growth. Given the declining gross margin q/q, breaking the margin’s recent upward trend, we reduce our EBITDA estimate by 12% for the current year. We expect the gross margin to stabilise somewhat in 2024 at slightly below historical levels. We adjust our fair value to SEK 4.5–4.6 (5.5–5.8).

 

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2022-08-17 Trading update brings hope of relief Show Close
2022-05-16 Figures still weak, but a bright spot in the trading update Show Close
2022-03-01 Trading update and numbers are a disapointment Show Close
2021-12-13 The numbers remain tough Show Close
2021-08-18 In line with earlier profit warning Show Close
2021-07-14 Profit warning with weak trading update Show Close
2021-05-17 Luke-warm start to quarter... Show Close
2020-11-16 A good catch after a share price plunge Show Close

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