Together Gaming Solutions plc - Updated Financial Analysis Summary

On 28 June 2021, Together Gaming Solutions plc published an updated Financial Analysis Summary (“FAS”) providing an overview of the company’s financial results in 2020, a comparison of the 2020 actual results with the forecasts published in the previous FAS dated 11 September 2020, as well as the forecasts for the current financial year ending 31 December 2021.

The following are the main highlights of the expected financial performance and position of Together Gaming Solutions plc in 2021:

  • Revenues are anticipated to drop by 36.32% to €5.8 million (2020: €9.1 million) reflecting lower revenue from ‘White Label Operators’ as well as a decrease of €2.5 million in forecasted royalties from the ‘Bethard Brand’.
  • Given the projected decline in business, cost of sales are expected to amount to €2.6 million compared to €6.7 million in 2020. On the other hand, administrative costs are forecasted to increase by €0.4 million to €1.6 million.
  • In view of the sharper drop in costs than revenue, EBITDA is expected to increase to €1.5 million compared to just under €1 million in the 2020 financial year.
  • Depreciation and amortisations costs are projected to remain unchanged at €2.3 million. Meanwhile, finance costs are forecasted to rise to €0.9 million from €0.64 million in 2020.
  • After accounting for a tax credit of €0.6 million (2020: €0.6 million), Together Gaming Solutions is forecasting a net loss of €1.1 million when compared to a net loss of €1.3 million in 2020.
  • Cash balances are expected to surge to €15.8 million from €0.5 million in 2020, reflecting the sale of the ‘Bethard Brand’ to ‘Esports Entertainment Group’ in May 2021.
  • The company is anticipating total borrowings to remain virtually unchanged at  €19.7 million. Meanwhile, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to climb to 53.1% compared to 51.5% as at the end of 2020.
  • Given the decline in net debt, the net debt to EBITDA multiple is forecasted to improve to 2.7 times compared to 19.4 times in 2020. Furthermore, the interest cover is expected to improve marginally to 1.7 times compared to 1.5 times in 2020.

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Together Gaming Solutions plc – Financial Analysis Summary dated 28 June 2021.

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