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
Research | 17 May 2023 | Angler Gaming

The turnaround begins in earnest

 

A reversal of the negative development

Revenues reached EUR 9.4m in Q1, implying y/y growth of 20%. EBIT came in at EUR 1.5m, providing a margin of 16%. This showed growth of 260% y/y, primarily driven by the gross margin rising to 35% from 23% for full-year 2022. We thus believe the company has succeeded in ending the poor affiliate partnerships that had constrained the gross margin over the past two years. Q2 2023 has had a formidable start, with a daily gaming surplus some 29% higher than in Q2 2022 We thus anticipate the healthy momentum seen from the company in Q1 will continue in Q2.

Proof that a turnaround is possible

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. Q1 2023 demonstrates that the initiatives taken during 2022 to improve profitability are starting to bear fruit. Moreover, we believe Angler’s efforts to sell its platform solution are beginning to pay off. B2B represented 7% of revenues in Q1 and 12% in April. We can conclude that the company is returning towards growth.

 

Rising gross margin reflected in estimates and valuation

We have previously stated that Angler must show proof of progress with its profitability-strengthening initiatives before we can adjust our estimates and fair value. This interim report shows it performing beyond our expectations.
We thus raise our revenue estimates by an average of 14%. As the gross margin far surpassed our forecast for the full year, we lift our EBITA estimate for the current year by EUR 1.6m. For 2024 and 2025, we up our EBITDA forecasts by EUR 1.6m and EUR 1.2m, respectively. The impressive growth and profitability prompt us to hike our fair value to SEK 7–7.2 (SEK 4.5–4.6).

 

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2023-02-21 Gross margins remain depressed, but trading update offers a glimmer of light Show Close
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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