The online casino operator has met its target to break even by mid-year
Sweden.- Global Gaming has announced it cut costs to turn a small profit in the second quarter despite a 55.9 per cent drop in revenue, thus accomplishing its target to break even by mid-year.
The news comes as Baltic-facing operator Enlabs proposes appointments for the new Board of Directors at Global after growing its stake in the Ninja Casino operator.
Enlabs agreed to purchase an additional 11.3 million shares to become Global Gaming’s largest shareholder in a SEK90.4million (€8.8million) deal in June. Enlab now holds 12.2 million shares in Global.
It has now proposed Niklas Braathen, current Chairman of the Enlabs Board, as Chair of the new Global Gaming Board.
It has proposed Christian Rasmussen as Chairman of the Remuneration Committee, and put forward Michael Niklasson, Jonas Bertilsson, and Arne Reinemo.
Global Gaming has reported that it was able to return to profit in Q2 by reducing expenses. It had already seen losses narrow in Q1.
That was despite revenue for the first half falling 55.9 per cent year-on-year to SEK129.7million (€12.6million), down from SEK294.3million in H1 2019.
It has posted an operating loss of SEK54.5million for the first half, halving the operating loss of SEK118.7million posted last year. The second quarter saw the operator eke out a SEK1.1million operating profit despite revenue being down from SEK 132.2million in Q2 2019 to 71.8million.
Operating expenses for the six months ending June 30 were cut 40.9 per cent to SEK201.1million. Marketing expenses fell 36.1 per cent to SEK116.9million, and personnel costs fell 44.3 per cent to SEK53.1million.
Ninja Casino brought in 81.9 per cent of revenue, while the launch of Boost Casino in some markets also made a contribution.
Global is slowly recovering from the impact of the loss of subsidiary SafeEnt’s licences in Sweden in June 2019 after the Swedish Gaming Authority’s (Spelinspektionen) found failings over responsible gambling and anti-money laundering measures.
Sweden was the operator’s largest market.
Having reached its target to break even by mid-year, it will now look to launch sports betting in existing markets and then to expand into new markets.
Global Gaming Chief Executive, Tobias Fagerlund, said: “A year ago, we showed an ability to react quickly and forcefully in a very difficult situation. We have step by step delivered what we set out to do and constantly adapted and adjusted our operational activities.
“No part of the organisation has remained unchanged; we have changed the technical platform, restructured the management, downsized the organisation by nearly two thirds which led to our cost base being completely different compared before.
“At the same time, in the midst of everything, we have concentrated and successfully run our remaining business. Revenues from our current markets have grown by 26 per cent during the first six months of the year compared with the first half of last year and by 35 per cent when comparing the second quarters of the two years.
“Global Gaming is now ready to enter the next phase of the company’s history. In the coming month, we will launch a comprehensive sports betting offer in our existing markets and brands, and in the third quarter we will complete what we previously communicated about launching in several new markets.”