Restructuring costs set to push Net Gaming to loss in Q2

Restructuring costs set to push Net Gaming to loss in Q2

Affiliate marketing business Net Gaming Europe has revealed it expects to report a net loss for the second quarter of 2020, primarily as a result of costs related to a restructuring of the business.

Published 15th June 2020

Revenue for the three months to 30 June is forecast to amount to €3.6m (£3.2m/$4.1m), which would be an increase of 4% on the same period last year, and a 14% improvement on the first quarter.

Reported earnings before interest, tax, depreciation and amortisation (EBITDA) are set to be down 23% year-on-year to €1.6m, but after being adjusted for non-recurring costs related to reorganisation and rebranding, EBITDA is likely to be up 4% to €2.1m.

Net Gaming also noted that it expects to post a loss after tax amounting to €1.2m, compared to a profit of €1.2m in Q2 last year. However, when adjusted for non-recurring costs and exchange rate fluctuations, profit after tax should come in at €1.4m for the quarter.

“The underlying operations have shown positive development during Q2, with sequential organic growth of 14%, but also compared with the previous year,” chief executive Robert Andersson said.

Read the full story on iGB.