While company CEO Tobias Fagerlund reaffirms a previous message of looking to a bright future, Global Gaming saw fourth quarter and full-year sales take a significant tumbling.
After the revocation of Ninja Casino’s licence in 2019, the company saw a number of appeals fall by the way, but activities after the quarter saw the Administrative Court of Appeal issue a trial permit to the company.
This was followed by the Swedish gaming authority rejecting Viral Interactive’s proposal to revive the online market brand Ninja Casino.
Revenue for Global Gaming declined 76 percent over the final quarter to SEK 57.5 m (2018: SEK 236.4 m), with a full-year decline of 55 percent at SEK 412.1 (2018: SEK 915.9 m).
Fagerlund stressed: “Sweden is still important to us and we regret that the Swedish Gambling Authority recently rejected Viral Interactive’s application to add the domain ninjacasino.se to its offer. We do not share the Swedish Gambling Authority’s assessment and, to say the least, find the motivation strange.”
“More important and more gratifying is that our appeal of the Swedish Gambling Authority’s decision to revoke our subsidiary SafeEnt’s licenses for the Swedish market has been granted review permit in the Administrative Court of Appeal. We look forward with confidence and excitement to the decision of the Administrative Court of Appeal, which we believe will be announced in the coming months.”
Due to the uncertainty surrounding a possible Swedish launch, the company also had to call it quits on a previously disclosed sportsbook partnership with Kambi. Nonetheless, it is emphasised that a “comprehensive” sportsbook service is to make its debut ahead of the European championships this summer.
Global Gaming’s gross profit also dropped sharply to SEK 37 m during Q4, marking a 74% decline from SEK 142.6 m, with full-year estimates falling 60% from SEK 553.2 to SEK 221.3 m.
Operating profit swung from a 18 m SEK gain in the final quarter of 2018 to a loss of 26.6 m SEK in 2019, with full-year losses ending at SEK118.7 m with a profit of 148.6 m SEK.
Maintaining the confidence evident in the address of his previous CEO, Fagerlund has reassured: “During the period, our efforts to create the conditions to succeed with our short and long term goals have continued unabated.
“We have completed the technical migration to Finnplay’s platform, fine-tuned a partially new and much smaller organisation, regained control of our costs and – not least – internally anchored, launched and started delivering according to the ambitious road-map that followed this autumn’s extensive strategy work.”
He added: “There is a good bit left for us before we have recovered from the 2019 setbacks and certainly there is much that can go against us. My most important message now, given the difficult starting position, is that there is a lot that goes well.
“We firmly believe that the processes we control ourselves go according to plan and we firmly believe that when we sum up in 2020 in a year, it is something quite different from the year we have now left behind. We believe in what we do!”