Yggdrasil Q2 2018 Update

Business highlights Q2 2018 (Q2 2017)

• 13 new licence agreements signed (12)
• 5 new games launched including first Table Game “Sonya Blackjack” (3)
• 2 gaming studios signed with YGS Masters
• Number of FTEs 243 (134)
• Yggdrasil partners with Nitro Circus for first ever branded game
• Yggdrasil awarded “Innovation in RNG Casino Software” at the EGR B2B Awards
• Player rounds increased by 66% to 1,328 million (801)
• Mobile share of EGW was 62% (56%)

Financial highlights Q2 2018 (Q2 2017)

• Total operating revenues increased by 65% to MSEK 66.7 (40.4)
• EBIT increased by 8% to MSEK 16.6 (15.3)
• EBIT margin amounted to 24.9% (37.9%)

Financial highlights H1 2018 (H1 2017)

• Total operating revenues increased by 67% to MSEK 124.3 (73.7)
• EBIT increased by 17% to MSEK 30.4 (26.0)
• EBIT margin amounted to 24.5% (35.3%)

Notable events after the quarter

• Signed with 888, Intralot and Tipsport. The signing with Tipsport allows Yggdrasil to enter into the Czech Republic market and partner with the leading Czech operator
• Launch of casino games fan site (yggdrasilcasino.com)

Comment on Q2 2018 by founder and CEO Fredrik Elmqvist

“Yggdrasil is once again able to present another eventful quarter characterised by strong growth and further expansion. Player rounds increased by 66% from the second quarter last year and revenues reached MSEK 66,7, representing an uptick of 65%. During the quarter we intensified our investment phase focusing on the organization, product and business verticals, yielding a profitability of as measured by EBIT of MSEK 16,6 and a 25% margin.

The second quarter has been active with the launch of Sonya Blackjack, the first game out in our new product vertical Table Games, including our ground-breaking motion capture technology and in-house proprietary client framework platform. We have also had a flying start for our YGS Masters programme and announced partnerships with two independent gaming studios. I look forward to welcoming additional world-class studios on a selective basis for strategic and mutually beneficial partnerships.

We have also launched a number of new blockbuster titles including Vikings Go To Hell, the third game in the highly appreciated Vikings series, and most recently Tut’s Twister. I am immensely proud of the achievements made by the team and for the continued strong demand among both operators and end players. In addition, our strong market position has been further underlined by receiving the prestigious “Innovation in RNG Casino Software” award at the EGR B2B Awards in June.

On the back of the second quarter performance I am excited by the opportunities lying ahead and believe conditions to be right for Yggdrasil to capture additional market share going forwards. We will continue to put full emphasis on growth and further quality enhancement initiatives targeting both our products and the business, ultimately paving the way for the future for the Yggdrasil Group.”

Fredrik Elmqvist, Malta, August 2018

About Yggdrasil

Yggdrasil is a provider of superior online gaming solutions for igaming operators. The business was founded in 2013 and has since emerged as one of the industry’s most respected and acclaimed suppliers. The business model is highly scalable and covers three product verticals: Casino Slots, Table Games and Bingo, in addition to the business verticals: Yggdrasil White Label Studios, YGS Masters and Yggdrasil Dragons. Since its inception, Yggdrasil has embarked on a solid growth trajectory enabled by a strong corporate culture focused on innovation, creativity, quality and technology leadership. Yggdrasil is headquartered in Sweden and has offices in Malta (operational HQ), Poland and Gibraltar.