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Publicerat: 2021-02-18 08:05:05

Everysport Media Group AB: YEAR-END REPORT 2020 EVERYSPORT MEDIA GROUP AB (publ.)

This is a translated version of the Swedish original, in case of deviations is the Swedish version considered to be the one to apply.

Consumer revenues create growth

Summary of the fourth quarter 2020

  • Net sales: 23,7 mkr (22,6 mkr)
  • EBITDA: 2,7 mkr (3,3 mkr)
  • Profit after tax: 2,9 mkr* (1,1 mkr)
  • Earnings per share: 0,63 kr (0,25 kr)
  • Cashflow from operating activities: 4,0 mkr (3,1 mkr)

Summary January - December 2020

  • Net sales: 82,3 mkr (90,2 mkr)
  • EBITDA: 4,7 mkr (11,3 mkr)
  • Profit after tax: 0,7 mkr* (6,4 mkr)
  • Earnings per share: 0,16 kr (1,40 kr)
  • Cashflow from operating activities: 9,0 mkr (6,7 mkr)

* Profit after tax is positively affected by SEK 1.4 million from a revaluation of deferred tax asset

CEO, Hannes Andersson, comments:

As we close the final quarter of 2020, we look back on a challenging year. From March 2020, the pandemic has affected human lives and economies worldwide, and Covid-19 continues to have a major impact on our society. But we are seeing signs of improvement. ESMG is dependent on a large range of sporting events to be held, which did not take place during the beginning of the pandemic. During the fall, however, most professional leagues have been able to be arranged in safe ways and when we now look ahead at the upcoming 18-month period, we face one of the most sport-intensive periods ever.

The pandemic has fast-forward a digital adoption that is here to stay, which has had a positive effect on ESMG. People have been forced to change their lifestyles and to an even greater extent used digital platforms to consume information, interact with others, and consume unique and credible content. This benefits ESMG’s rapidly growing B2C-related products. In the fourth quarter, the B2C segment grew by 30% compared to the same period last year and was larger than ever. In total, the segment accounted for 35% of the Group's total sales. Eliteprospects.com continues to stand out, where the number of subscribers has now passed 8,000, in combination with a growing total number of visitors (which fluctuated between 1.0-1.5 million unique visitors per week).

As a result of a number of new product launches, we have recruited eight new employees to our offices in Sweden and USA. In January, another five people joined as part of our new editorial venture in North America around the site EPrinkside.com.

During the fourth quarter, the group achieved a total net sales of SEK 23.7 million (SEK 22.6 million). We are very pleased that in the midst of a pandemic, we are delivering growth with continued good margins. Despite obvious challenges, our staff has continued to innovate and the past year has prepared us to handle potential new challenges that may await.

At the end of December, we announced that we had entered into an agreement to acquire the Norwegian media company Trav og Galopp-Nytt. Closing date is expected to take place on March 1, 2021, and through the acquisition we will further strengthen our position within the iGaming area in the Nordic region. We will become the leading supplier of editorial products for horse racing in Norway and we are building a foundation to grow even further by launching new sports-related products.

Finally, I would like to thank our shareholders for your continued support, as well as employees of ESMG for their tireless work during these stressful times. Although we do not expect the business to return to normal yet, we are convinced that the company will be able to continue its growth journey in 2021 and during the intense period of sporting events that now awaits.

Forward-looking statement

The corona pandemic is still affecting the world around us to a large extent and it is difficult to predict how it will develop in the coming months. ESMG has recovered from the most turbulent period in the spring of 2020, but despite the fact that the company is now stable and has seen clear improvements, we are humble when facing what is ahead of us. In 2021, we will continue to invest in existing and new products, expand our investments in the B2C segment, and focus on strengthening our positions both in Sweden and internationally. Given the uncertainty that still prevails and how the pandemic may affect when major sporting events can be arranged in many countries, we choose not to give a forecast for the full year 2021.

Significant events during and after the end of the period

On November 11, it was announced that Erik Penser Bank will act as market maker for ESMG's share on the Spotlight Stock Market. It was also announced that ESMG and Erik Penser Bank have initiated a collaboration that includes ongoing services related to commissioned research.

On December 29, ESMG announced that an agreement had been reached to acquire Trav og Galopp- Nytt AS (TGN). TGN has a turnover of approximately NOK 20 million and is Norway's leading media house within horse racing. The business is merged with ESMG's existing business in Norway. Closing date is expected to take place on March 1st 2021 and is conditional on a number of conditions being met.

After the end of the period, it was announced that ESMG has signed a strategic cooperation agreement with Norsk Rikstoto. ESMG's Norwegian subsidiary will as of March 1st, 2021 be the supplier of editorial content and gaming information for both Norway and Sweden.

On February 12, the Board of Directors called the company's shareholders to an Extraordinary General Meeting, which will be held on March 17, due to a decision on an incentive program for the employees, to management and the CEO, and also a directed new share issue to the CEO.

Net Sales, earnings and financial position during the period

Net Sales???????


Net sales for the fourth quarter amounted to SEK 24 million (SEK 22,6 million). An increase of 5,0 % compared with the same quarter last year.

Net sales for the full year 2020 amounted to SEK 82,3 mkr (90,2 mkr) A decrease with 9% compared to last year

The outbreak of Covid-19 had a major impact on sales during the second and third quarter, hence most of the sporting events around the world were cancelled and many of the products of the company are depending on the carrying through of sporting events. During the second half of 2020, sporting events have gradually resumed again and revenues have also gradually recovered during the second half of the year.

B2B

The Covid-19 pandemic has had the strongest negative impact on sales in the B2B segment. In the B2B segment, it was primarily the advertising business that suffered as the demand for advertisement products decreased when corporate customers had to cut down on marketing campaigns. However, an overall return of the ad market, have gradually been noticed during the second half year of 2020 Even though it looks more promising it is still not back at the same levels as before the Covid-19 outbreak.B2CAlthough sales in 2020 have decreased compared to 2019, there has been an increase in the B2C segment of 30% during the fourth quarter and 16% for the full year 2020 compared to 2019. The increase in B2C revenue compared to last year is the result of a long-term effort to find new revenue within subscription income, unit purchase income and other income linked directly to consumers. The transfer of revenue from the B2B to B2C segments is important from a long-term strategic perspective as they are more stable over time and have a better margin.

EBITDA and EBIT???????

EBITDA for the fourth quarter amounted to SEK 2,7 million (SEK 3,3 million). EBITDA for the full year 2020 amounted to SEK 4,7 million (11,3 million)

The decrease in EBITDA compared with the same quarter last year and the full year is directly linked to the impact Covid-19 had on sales within the B2B-segment. The cost base for the full year 2020 is slightly lower than the previous year, hence the company has received support for short-term layoffs and been more cautious with costs spending in general during the pandemic.EBIT for the fourth quarter amounted to SEK 1,6million (SEK 1,4million). EBIT for the full year 2020 amounted to SEK 0,7 million (7,2 million)EBIT during the fourth quarter of 2020 is affected by depreciation by SEK -1,1 million (SEK -1,9 million). The reduction in depreciation compared with the fourth quarter last year is due to that in the fourth quarter last year a write-down of SEK 1.0 million was made of an old obsolete platform. Depreciation for the full year has decreased by SEK 0.2 million compared with the previous year. Apart from the write- down in the fourth quarter of 2019, depreciation increased by SEK 0.8 million during the full year 2020 compared with the previous year, which is linked to increased investments.

Capitalized work on own account during the quarter amounts to SEK 0,5 million (SEK 0,6 million).

Financial position

At the end of the period, Everysport Media Group AB (publ.) has equity of SEK 22,5 million (SEK 22,5 million) and an equity ratio of 33% (41%)

???????Cash and cash equivalents at the end of the period were SEK 10,4 million (SEK 3,0 million). In addition to cash and cash equivalents, Everysport Media Group has access to additional banking facilities that strengthen the financial position

Result for the period???????

The result for the period for the fourth quarter and for the full year 2020 was positively affected by SEK 1.4 million linked to a capitalization of deferred tax assets. They are now capitalized at their full value and are expected to be utilized within the next 2-3 years.

Share and shareholders

As of the date on 31st of December, 2020, 4 542 496 shares were issued. All shares have equal rights to the company's profit and assets.

At the end of the quarter, Everysport Media Group AB had 801 (824) shareholders.

Employees

The average number of full time equivalents during the quarter was 69 (66).

Accounting principles

This interim report includes the Swedish parent company Everysport Media Group AB (publ), corporate ID 556739-8143, and its subsidiaries. The Group’s main operations are divided into Content and Media. Within Content the Group is a leasing provider of results data, game tips and sports tips. Within Media the Group owns and runs digital sites like, EliteProspects, Svenska Fans, Fotboll Direkt, HockeySverige, Travtjänsten and Sporttjänsten which acts as engines for the products offered within the Group.

The parent company is limited liability company registered in Stockholm, Sweden. The adress for the headquarters is Gamla Brogatan 11, 111 20 Stockholm.

The consolidated accounts for Everysport Media Group AB (ESMG) have been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1 Complementary Accounting Rules for Groups . This is the Groups fourth financial report in accordance with the International Financial Reporting Standards (IFRS) with transition date as 1st of January 2019. The Group has previously applied BFNAR 2012: 1 Annual Report and Consolidated Accounts (K3). The transition to IFRS has been made in accordance with IFRS 1 The first time IFRS is applied and described in more detail in the appendix Transition to IFRS. The Group's complete accounting principles are described in the Appendix Transition to IFRS, where full accounting principles and transition tables are found.The interim report regarding the parent company has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The parent company has previously applied the Annual Accounts Act and BFNAR 2012: 1 Annual Report and Consolidated Accounts (K3) in the preparation of financial reports. As of these financial reports, the Parent Company, as a result of the Group's transition to IFRS, applies RFR 2 Accounting for legal entities. See separate paragraph for a description of the Parent Company's accounting principles.

Dividends

The Board of Directors suggests no dividends for the financial year of 2020

Audit

This report has not been reviewed by auditors.

Further reporting dates

???????
The Annual report will be released on the latest 3 week before the Annual General Meeting on the companies website as well as Spotlight’s website. The Annual General Meeting will be held on the 24th of May 2021 in Stockholm.

The financial reports for Everysport Media Group are published in the company’s website www.esmg.se

Interim Report Jan - March 2021          11th of May 2021

Interim Report 2021                              19th of August 2021

Interim Report July - Sep 2021             28th of October 2021

Year-End Report 2021                          17th of February 2022
 

Stockholm 2021-02–18

Hannes Andersson

CEO

This information is such information that Everysport Media Group AB (publ.) Is required to publish in accordance with the EU Market Abuse Regulation. The information was provided, through the agency of the above contact person, for publication on February 18th, 2021.
 

Any questions answered by:

Hannes Andersson, CEO, Everysport Media Group AB, tel: +46 70 736 56 25
e-mail: hannes.andersson@esmg.se

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