Acroud provides trading update and earnings estimates ahead of the interim report Q1 2022
EBITDA is expected to amount to around EUR 2.2 million compared to EUR 0.8 million in the previous quarter
Due to exceptionally strong first-quarter performance, which exceeds the market’s expectations, Acroud has decided to publish its preliminary estimated quarterly revenues and earnings in a trading update in advance of the Interim Report for Q1 2022.
The solid outcome is the result of Acroud’s successfully executed cost synergies and strategic plans to build the right foundation for accelerated growth, which were implemented in 2021.
In March 2022, Acroud has divested its finance affiliation assets for USD 575 thousand. The divestment aligns with the Company’s strategy to focus on and be the preferred digital affiliation partner within the iGaming market. The total consideration of USD 575 thousand represents a multiple of approximately 5.2x annual EBITDA, based on the last twelve months. USD 425 thousand out of the total consideration was paid on transaction day and the remaining USD 150 thousand will be paid once the transfer of the sold assets is complete (by the end of April 2022).
Trading Update regarding Q1 2022
Group
- Revenue is expected to amount to EUR 6.9m for Q1 2022, representing a 6 per cent growth quarter-on-quarter and 24 per cent growth year-on-year.
- EBITDA is expected to amount to EUR 1.8m, which increases to EUR 2.2m when including profit on disposal. The latter corresponds to a growth of 175 per cent quarter-on-quarter and 56 per cent year-on-year.
- Cash flow generated from operations during Q1 2022 (excluding proceeds from divestment of the finance assets) is expected to amount to approximately EUR 1.3m, impacted by negative working capital development in the quarter.
- As of 31 March 2022, cash and cash equivalents are estimated to be EUR 2.6m. The Company’s net interest-bearing debt is expected to amount to EUR 16.7m, equivalent to a leverage of 3.2x Net Debt/EBITDA, based on estimated LTM EBITDA ending 31 March 2022.
- Following the strong start to 2022, Acroud is expected to reach between EUR8m and EUR 10m in EBITDA during the year. EBITDA during 2021 amounted to EUR 4.7m.
iGaming Affiliation segment
- Revenue is expected to amount to EUR 3.0m for Q1 2022, representing a 10 per cent growth quarter-on-quarter and 5 per cent growth year-on-year.
- EBITDA is expected to amount to EUR 1.5m, which increases to EUR 1.9m when including profit on disposal. This corresponds to a growth of 145 per cent quarter-on-quarter and 32 per cent year-on-year.
- 69 per cent of the Affiliation’s revenues are expected to be generated from Europe during Q1 2022. 16 per cent is expected to be generated from North America and 15 per cent from other regions.
- The Casino vertical is expected to constitute 49 per cent of the Affiliation’s revenues during Q1 2022. Poker is expected to represent 28 per cent, Betting 21 per cent and Other 2 per cent.
- Revenue share agreements are expected to constitute approximately 46 per cent of the Affiliation’s revenues during Q1 2022, and cost per acquisition (CPA) and Other are expected to represent approximately 32 per cent and 22 per cent of revenues, respectively.
SaaS segment
- Revenues are expected to amount to EUR 3.9m for Q1 2022, representing a 3 per cent growth quarter-on-quarter and 43 per cent growth year-on-year.
- EBITDA is expected to amount to EUR 0.5m. This corresponds to a growth of 104 per cent quarter-on-quarter and 68 per cent year-on-year.
- Network-model is expected to constitute 94 per cent of the SaaS’ revenues. Subscriber-based SaaS solution Voonix is expected to represent 6 per cent.
Refinancing process
- During first quarter of 2022, the Company’s Board initiated the refinancing process and has appointed financial (Pareto Securities AB) and legal (Gernandt & Danielsson Advokatbyrå KB) advisors to assist in the process. Acroud is continuously working with its advisors to secure refinancing of its bond loan maturing in September 2022. The Company intends to communicate further details as soon as possible.
“This trading update reaffirms our strong start to the financial year 2022 and proves that Acroud is positioned to deliver significant growth in both revenue and profit in 2022 and beyond. With a leaner and more agile team, the knowledge, assets, and cost base we have now in place, I’m excited to see we have reached the desirable foundation to accelerate revenue growth and optimal margins,” says Robert Andersson President & CEO of Acroud.
All figures in this press release are preliminary and unaudited estimates based on management accounts. The next financial update in connection to the first quarter interim report will be published on 19 May 2022.
About ACROUD AB
ACROUD is a fast-growing global challenger that operates and develops +30 comparison and news sites within Poker, Sports Betting and Casino. In 2021, Acroud launched The Festival Series which is a competitive Sports Betting, Casino and Poker Experience taking place in different destinations in Europe. Acroud also offers SaaS (Software as a Service) solutions for the iGaming affiliate industry. In 2020 and 2021, a number of companies have joined the ride and thus several experienced individuals in the industry leads Acroud’s journey to become “The Mediahouse of The Future”. Our mission is to connect people, Content Creators (Youtubers, Streamers, Affiliates) and businesses. We are growing fast and we are a leading global player in the industry with just over 75 people in Malta, Denmark and Sweden. Acroud has been listed on the Nasdaq First North Growth Market since June 2018.
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