Finance affiliation assets divestment boosts Acroud earnings
Acroud said that its earnings before interest, tax, depreciation and amortisation (EBITDA) will be approximately €2.2m (£1.8m/$2.4m) – up from €800,000 in the final three months of 2021 – when the business’ recently agreed sale of its finance affiliation assets is taken into account.
The business added that the divestment to an undisclosed business or businesses – totalling $575,000, including $425,000 that was paid in March and a further $150,000 that is due by the end of this month – aligns with its “strategy to focus on and be the preferred digital affiliation partner within the igaming market”.
Acroud, which also operates in the software-as-a-service (SaaS) sector, added that its encouraging figures at the start of the new year had been due to “successfully executed cost synergies and strategic plans to build the right foundation for accelerated growth, which were implemented in 2021”.
Specifically in igaming, revenue is expected to have grown by 10% quarter-on-quarter to €3.0m in the first three months of 2022.
Total revenue is expected to amount to €6.9m in the first quarter, up 6% on the previous quarter and a 24% increase in comparison with the corresponding period last year.
Following the Q1 performance, which Acroud said “exceeds market expectations”, overall EBITDA is expected to reach between €8m and €10m this year, around double the €4.7m figure reported for 2021.
More than three-quarters of igaming revenue is expected to have been generated from Europe at the start of 2022, with 16% derived from North America. Casino remained its biggest vertical in igaming, representing 49% of sales in the first quarter, followed by poker on 28% and betting on 21%.
“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,” said Robert Andersson, Acroud’s president and chief executive.
“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.”
Acroud recently initiated a refinancing process ahead of its bond loan maturing in September, with further details expected to be announced soon.
In February, the business also announced a 113.8% increase in turnover in 2021, although costs associated with three acquisitions led to a drop in net profit.