iGB-Affiliate-Monitor_FEBRUARY 2022 | Page 24

Affiliate Monitor Company-by-company Q3 results analysis

A longer-term look at the company ’ s revenues over the past two years shows the extent to which the company is now on a different path .

This transformation is even more stark when we look at the company ’ s previous seven quarters of NDCs .

However , these topline numbers are only half the story . Looking at the EBITDA numbers from Acroud ’ s recent trading history shows the needle barely moving despite the enhanced revenues . In fact , between the fourth quarter 2019 and the third quarter 2013 , the EBITDA figure has declined by over 34 %. Explaining the numbers , Andersson said in the Q321 results statement that the company has “ actively continued to invest in new growth initiatives for the future at the expense of short-term profitability ”.

But he added : “ It would be wrong to say that we are satisfied with the EBITDA level , however internally we are sure of our progress and underlying KPIs are showing strong trends which will bear fruit going forward .”

Those underlying KPIs include the NDC figure . But that itself is somewhat misleading as the majority of the increase is due to the affiliate platform business , meaning Acroud receives less of the economic benefit from these players versus what it receives as part of players flowing through to its own affiliate arm .

Chart 18 : Acroud revenues Q419-Q321 (€ m )

6.5

6.2 6

5.6

5

4 3.6

3.3 3.2

3 2.4

2.5

2

1

0 Q419 Q120 Q220 Q320 Q420 Q121 Q221 Q321

Source : company reports

Chart 19 : Acroud NDCs Q120-Q321

Chart 20 : Acroud EBITDA Q419-Q321 (€ m )

Source : Company reports iGB Affiliate Monitor