Global Gaming “not out for the count” despite 76% revenue decrease
Profits fall by 162% in Q3 as Swedish licence revocation spells “dark times” for the Malta-based operator
Global Gaming today reported a dramatic Q3 revenue decrease of 76% to SEK 60.3m (£4.8m), although the operator pledged to fight back from its current predicament.
Third quarter operating profit plummeted by 162% to SEK -37.6m, as the firm struggled to recover from having its Swedish licence removed by the Swedish Gambling Authority (SGA) in June.
Global Gaming’s appeal against the licence revocation was rejected by the country’s Administrative Court, although it has pledged to apply for a review permit in the Administrative Court of Appeal.
The legal process is ongoing.
Global Gaming CEO Tobias Fagerlund
Global Gaming CEO Tobias Fagerlund said: “I had opened my previous CEO’s message by saying that we were experiencing the most turbulent time in the company’s history.
“But when the Swedish Gambling Authority revoked our Swedish licences in mid-June, the word challenge took on a whole new meaning for us.
“Saying it was dark times would be a gross understatement,” he added.
Fagerlund told investors there were “no magic tricks that can restore results or the market’s confidence” but he was eager to point out operational changes during the quarter.
The operator’s total headcount in 2020 will be less than 90, having been cut by more than 50% from Q2, while it has also reduced operations in Malta and permanently closed its Malmö tech team.
As a workaround, Global Gaming partnered with Finnplay to launch its Nano Casino venture in Q3 and has also added its flagship Ninja Casino brand to the platform provider’s white-label partnership.
“Although we both hope and believe that Ninja Casino will return to the Swedish market, it is important for me to stress that this is not our main focus,” Fagerlund said.
Global Gaming’s flagship Ninja Casino brand
He added: “Like many of our shareholders, I am frustrated and disappointed by how 2019 turned out.
“For what it’s worth, I’d like to reassure all those who are interested that we are by no means out for the count.
“Granted, we have a lot of hard work ahead of us and it will take time, but we still have a lot to give and you can expect to see results even short term.
“We are working relentlessly and the processes we can affect ourselves are moving forward according to our high expectations.
“Of course, we’d like to see quicker results and our patience may be stretched at times, but the future appears brighter now than it has for many months.”
To read Fagerlund’s full letter to investors, click here.