Brief: Net Gaming Carries Out Restructuring, Issues Q2 2020 Forecast

Acroud AB

12/06/2020 08:04

June 12 (Reuters) - Net Gaming Europe AB  NETG.ST :
    * NET GAMING CARRIES OUT RESTRUCTURING AND ISSUES FORECAST
FOR Q2
2020
    * OPERATIONS HAVE PERFORMED WELL DURING Q2, SHOWING BOTH
ORGANIC
GROWTH AND IMPROVED UNDERLYING PROFITABILITY IN ADJUSTED EBITDA
    * REORGANISATION WILL GIVE RISE TO NON-RECURRING COSTS OF
EUR 0.5M
DURING Q2 2020, CHARGED TO OPERATING PROFIT (EBITDA)
    * REORGANISATION OF BUSINESS AND TRANSFORMATION TO ACROUD AB
HAVE
BEGUN DURING Q2
    * REORGANISATION INVOLVES, AMONG OTHER THINGS, CLOSING
SWEDISH
OFFICE AND CENTRALISING BUSINESS TO MALTA
    * COMPANY HAS ALSO DECIDED TO RECOGNISE AN IMPAIRMENT LOSS
OF EUR
0.5M ON ASSETS RELATED TO POKERLOCO BRAND
    * REORGANISATION WILL BRING ANNUAL SAVINGS OF EUR 0.3M, WITH
FULL
EFFECT FROM Q3
    * REORGANISATION WILL GIVE RISE TO NON-RECURRING COSTS OF
EUR 0.5M
DURING Q2 2020, CHARGED TO OPERATING PROFIT (EBITDA)
    * REVENUE IS EXPECTED TO AMOUNT TO EUR 3.6M IN Q2 2020, 14
PERCENT
HIGHER THAN IN Q1 2020 AND 4 PERCENT HIGHER THAN IN Q2 2019
    * ADJUSTED EBITDA (ADJUSTED FOR NON-RECURRING COSTS RELATED
TO
REORGANISATION AND REBRANDING) IS EXPECTED TO AMOUNT TO EUR
2.1M, 21 PERCENT HIGHER THAN IN Q1 2020 AND 4 PERCENT HIGHER
THAN IN Q2 2019
    * REPORTED PROFIT AFTER TAX IS EXPECTED TO AMOUNT TO EUR
-1.2M,
COMPARED WITH EUR 2.8M IN Q1 2020 AND EUR 1.2M IN Q2 2019
    * REPORTED EBITDA IS EXPECTED TO AMOUNT TO EUR 1.6M, 10
PERCENT
LOWER THAN IN Q1 2020 AND 23 PERCENT LOWER THAN IN Q2 2019
    * AT 30 JUNE 2020, CASH POSITION IS ESTIMATED AT EUR
3.0-3.2M

Source text for Eikon:  ID:nWkr4cww7c 
Further company coverage:  NETG.ST 

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