EMB Mission Bound AB - Exploring the limits of growth in the iGaming sector

For the second quarter, revenue amounted to SEK 46.4 million, 2% below the corresponding period last year. For the first half, revenue was broadly unchanged at SEK 85.0 million. Beneath that headline, however, the composition of revenue changed materially. Technology access fees increased by 149% and service fees by 93% in the first half, fully offsetting a 77% decline in royalty revenue.

Our financial performance also continued to strengthen. EBITDA increased by 40% to SEK 14.5 million in the quarter and by 69% to SEK 26.4 million for the first half. Operating income nearly doubled to SEK 7.0 million in Q2 and increased to SEK 12.2 million for the first half. Profit for the quarter rose by 186% to SEK 7.3 million, while first-half profit increased to SEK 12.4 million, compared with SEK 1.6 million in the corresponding period last year.

Cash generation and the balance sheet improved meaningfully. Operating cash flow reached SEK 20.8 million in the quarter and SEK 28.4 million for the first half, increases of 109% and 65%, respectively. The closing cash balance rose to SEK 20.2 million, while net assets increased by 35% year on year to SEK 58.1 million. This stronger financial position gives us greater capacity to execute our platform strategy with discipline.

Q1 showed that the foundation was beginning to perform; Q2 demonstrates that the transition is gaining momentum.

Q2 is out, and at first glance, it is truly a strong report; the platform strategy has started to take off nicely. Revenue practically reached the strong comparative period despite the fact that royalty revenue from legacy slot games has become marginal, in line with the strategy. The relevant revenue segments, technology access fees and service fees, are showing great growth. And now that this platform, which has clearly proven itself to be competitive, has been sold with serious intent, the scalability of the business is already visible in the numbers. This is a good place to be as we head into future quarters.

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