HONG KONG, CHINA / ACCESSWIRE / August 11, 2020 / The world's largest telecommunications infrastructure service provider China Tower Corporation Limited ("China Tower", or the "Company") (Stock Code: 0788.HK) is pleased to announce its interim results for the six months ended 30 June 2020.

Performance Highlights

RMB million

Six months ended 30 June

2020

2019

Change

Operating revenue

39,794

37,980

4.8%

EBITDA

29,100

27,815

4.6%

Profit attributable to the Company

2,978

2,548

16.9%

Earnings per share (RMB)

0.0170

0.0145

17.2%

Key operating data

Number of tower sites (thousand)

2,015

1,954

3.1%

Number of tower tenants (thousand)

3,124

2,931

6.6%

Tower tenancy ratio (tower tenants / tower sites)

1.64

1.58

3.8%

In the first half of 2020, we continued to focus on quality enhancements by increasing investment efficiency and optimizing cost management. This ensured that we maintained a stable growth in revenue while steadily improving our operating efficiency at the same time. We recorded an operating revenue of RMB39,794 million, up by 4.8% over the same period last year. Our EBITDA[1]reached RMB29,100 million, with the EBITDA margin[2] maintained at a high level of 73.1%. Profit attributable to owners of the Company reached RMB2,978 million, up by 16.9% over the same period last year.

Our cash flow was sound and healthy, and we sustained a reasonable and controllable debt leveraging level. In the first half of 2020, our net cash generated from operating activities amounted to RMB27,083 million. Capital expenditure amounted to RMB14,302 million and our free cash flow[3] reached RMB12,781 million. As of 30 June 2020, the Company's total assets reached RMB335,429 million and interest-bearing liabilities amounted to RMB113,949 million with a gearing ratio[4]of 37.5%.

In the first half of 2020, we promoted the resumption of work and service during the COVID-19 pandemic in an orderly manner, endeavoring to minimize the negative impact of the pandemic. Whilst fully adhering to the measures necessary for the prevention and control of the pandemic, we firmly upheld our "One Core and Two Wings" strategy and leveraged our advantages in resource sharing to bolster our core competencies. Building on the solid foundation of our telecommunications service provider ("TSP") business, we achieved rapid development and breakthroughs in our trans-sector site application and information ("TSSAI") business and energy operation business, contributing to the further optimization of our overall business structure.Tower tenancy ratio had increased from 1.62 at the end of 2019 to 1.64 at the end of June 2020, reflecting a continued improvement in the level of site co-location.

Fully supporting the construction of 5G networks to maintain steady growth in our TSP business

In the first half of 2020, given the scaling construction of 5G networks and the demand for in-depth 4G network coverage, we continued to promote resource sharing through full utilization of existing resources and stepping up our efforts to acquire more social resources. This would serve to increase our operational efficiency and create more collaborative value. During this period, 97% of 5G construction demand from TSPs was satisfied through the sharing of existing resources. Taking into account the new features of 5G infrastructure, we continued to proactively promote the implementation of our integrated wireless communications coverage solutions. By combining macro and small cells, as well as outdoor and indoor network, these solutions provided a more economic, flexible and diverse way to fulfil customers' needs for cost-effective and varied approaches in network coverage. As of the end of June 2020, the Company managed a total of 2,015 thousand tower sites, representing an increase of 21,000 compared to the end of 2019. The total number of TSP tenants increased by 61,000 to 3,124 thousand compared to the end of 2019. Additionally, the revenue of our tower business increased by 1.6% to RMB36,371 million over the same period in 2019.

With regard to our Distributed Antenna System ("DAS") business, the Company fully leveraged its advantages in providing coordinated one-stop solutions. Considering a range of scenarios, we focused on customer demand and worked to create multiple and differentiated solutions that combine the active and passive DAS construction models. Our DAS revenue for the first half of 2020 increased by 37.2% year-on-year to RMB1,720 million.

Keep focusing on key sectors to accelerate the growth of our Two Wings business

The growth of our TSSAI business remained fast and healthy. We leveraged our advantages in tower site resources and expertise to capture new opportunities arising from the digitization and informatization of society. With our foci on "resource sharing" and "data information", we placed great emphasis on key sectors and customers and continued to innovate our products and enhance our platform's operational capabilities. In addition, we formed an initial standardized product portfolio in areas such as video surveillance, field supervision, edge access and data monitoring. This accelerated our transition from providing ordinary resource leasing to offering an integrated information service, enabling the rapid and high-quality development of our TSSAI business. From the end of 2019 to 30 June 2020, the total number of our TSSAI tenants increased by 13,000 to 189 thousand. In the first half of 2020, our revenue generated from TSSAI business was RMB1,264 million, up by 49.9% over the same period last year.

We achieved effective breakthroughs in our energy operation business. Drawing from our experience in ensuring base-station power supply and operating traction batteries, we formulated plans to scale up our energy business for operations across society and established a new platform for energy sharing. Over the first half of 2020, we maintained a focus on our four core businesses of power backup, power generation, battery exchange and charging. While building on our previous pilot projects, we continued to optimize our product platform and grow our customer base. As of 30 June 2020, the cumulative number of power exchange service users had reached 153 thousand. This reflects how we have initially established a unified brand in the energy business with competitive edge, which set a good foundation for sustainable development in the future. Additionally, our energy business recorded a revenue of RMB315 million, representing an effective launch.

Mr Tong Jilu, Chairman of China Tower said, "Looking to the future, given the ongoing implementation of China's 'Cyberpower' and 'new infrastructure'strategies, the construction and deployment of 5G networks will continue to accelerate. As a telecommunications infrastructure service provider, the Company is looking to capture new market development opportunities, continuously uphold its strategy of resource sharing and maintain high-quality growth. This will ensure the stable growth of its operating results and continue to increase the efficiency of development ultimately generating higher returns for its shareholders."

~ End ~

About China Tower:

Since its incorporation on 15 July 2014, China Tower Corporation Limited ("China Tower") has developed into the world's largest telecommunications tower infrastructure service provider with compelling market advantage under the national strategy of Cyberpower. China Tower was listed on the Main Board of Hong Kong Stock Exchange on 8 August 2018 (Stock Code: 0788.HK), raising approximately HK$58.8 billion. The Company implements the strategy of "One Core and Two Wings". "One core" refers to the traditional tower business and indoor Distributed Antenna System (DAS) business, which provide services to the TSPs based on site resources; while "Two Wings" refers to the Trans-sector Site Application and Information (TSSAI) business which mainly provides tower site resources and data information services to different industries, as well as energy operation business to satisfy the growing demands on energy services in the society, such as power backup and generation, charging, battery exchange and echelon use of batteries. China Tower adheres to the "sharing" philosophy for business development. It promotes site co-location and provides a wide range of services to fulfil the specific needs of its customers. As of the end of June 2020, the Company's total assets amounted to RMB335,429 million. China Tower operated and managed 2,015 thousand tower sites across 31 provinces, municipalities and autonomous regions in the PRC, and served over 3,313 thousand tenants with the tenancy ratio of 1.64.

Investor and Media Enquiries

PRChina Limited
Alice Yip / Jack Liu / Liting Chen
T：(852) 2522 1838 / (852) 2522 1368
E：ayip@prchina.com.hk / zyliu@prchina.com.hk / lchen@prchina.com.hk

Note 1: EBITDA is calculated by operating profit plus depreciation and amortization.
Note 2: EBITDA margin is calculated by dividing EBITDA by operating revenue, and multiplying the resulting valueby 100%.
Note 3: Free cash flow is the net cash generated from operating activities minus the capital expenditures.
Note 4: Gearing ratio is calculated as net debt divided by the sum of total equity and net debt, then multiplied by100%. Net debt is calculated as the amount of interest-bearing liabilities minus the amount of cash and cash equivalents.

SOURCE: China Tower Corporation Limited

ReleaseID: 601131

Combining Industry's lowest power high speed Octal flash device incorporating leading embedded AI processing with Renesas' Dynamically Reconfigurable Processor (DRP) Technology targeted at Industrial IoT market

LONDON, UK / ACCESSWIRE / August 11, 2020 / Dialog Semiconductor plc (XETRA:DLG), a leading provider of power management, charging, AC/DC power conversion, Wi-Fi and Bluetooth(R) low energy technology, today announced that its EcoXiP(TM) octal xSPI non-volatile memory (NVM) which was added to Dialog's portfolio through its recent acquisition of Adesto Technologies, is now optimized to be used with Renesas' RZ/A2M Arm (R) -based microprocessors (MPUs). Customers of the RZ/A2M, which is designed for high-speed processing of embedded AI imaging in smart appliances, service robots, and industrial machinery, can take advantage of the system-level benefits of EcoXiP, the industry's lowest power octal xSPI NOR flash device.

For systems leveraging the Renesas MPU, EcoXiP enables ultra-fast boot for instant-on capability and real-time system responsiveness. It also offers efficient storing of AI weights for low-power AI inference. In addition, EcoXiP enables MPUs such as the RZ/A2M to operate in eXecute-in-Place (XiP) mode for code execution directly from external flash memory.

"With RZ/A2M MPUs featuring Renesas' exclusive Dynamically Reconfigurable Processor (DRP) technology, we bring real-time, low-power image processing to IoT endpoints," said Shigeki Kato, Vice President of Enterprise Infrastructure Business Division at Renesas. "We are delighted to welcome Dialog's EcoXiP device to the ever-growing ecosystem around our MPUs. We look forward to working with Dialog in order to show how our MPUs and EcoXiP can benefit a growing number of applications, accelerating intelligence at the IoT edge."

"Together with Renesas' RZ/A2M, we are able to demonstrate multiple facets of EcoXiP's performance and power consumption benefits," said Gideon Intrater, CTO, of the Industrial Business at Dialog. "With its RZ/A2M, Renesas is addressing the need for more powerful processing and real-time operation to enable embedded AI imaging in IoT endpoints. As an external companion flash memory, EcoXiP provides a balanced tradeoff of performance and power advantages for a broad range of emerging IoT applications that can benefit from AI imaging."

EcoXiP is one of the first NOR flash devices to support the Expanded Serial Peripheral Interface (xSPI) communication protocol, with concurrent read-while-write (RWW) capability, enabling higher transfer rates and lower latency for flash memory, offering significant advantages for over-the-air updates, and data logging. EcoXiP eliminates the need for expensive on-chip embedded flash in a broad range of emerging applications, and hits the sweet spot for power, system cost and performance. It achieves significantly lower power consumption compared to other octal devices, and dramatically higher performance versus quad SPI devices.

EcoXip is available in volume production. For more information please visit: https://www.dialog-semiconductor.com/products/memory/octal-xspi-memory

ENDS

NOTES:

Dialog, EcoXiP, and the Dialog logo are trademarks of Dialog Semiconductor plc or its subsidiaries. Arm and Arm Cortex are trademarks or registered trademarks of Arm Limited. All other product or service names are the property of their respective owners. (c) Copyright 2020 Dialog Semiconductor. All rights reserved.

Media Contact:
Mark Tyndall
SVP Corporate Development & Strategy
Dialog Semiconductor
Phone: +1 (408) 845 8520
mark.tyndall@diasemi.com
Web: www.dialog-semiconductor.com
Twitter: @DialogSemi

About Dialog Semiconductor

Dialog Semiconductor is a leading provider of standard and custom integrated circuits (ICs) that power the Internet of Things and Industry 4.0 applications. Dialog's proven expertise propels the next generation of today's devices by providing Battery Management, Bluetooth(R) low energy, Wi-Fi, Flash memory, and Configurable Mixed-signal ICs, improving power efficiency, reducing charge times, while increasing performance and productivity on the go.

Dialog operates a fabless business model and is a socially responsible employer pursuing many programs to benefit the employees, community, other stakeholders and the environment it operates in. With decades of experience and world-class innovation, we help manufacturers get to what's next. Our passion for innovation and entrepreneurial spirit ensures we remain at the forefront of power efficient semiconductor technology for the IoT, mobile, computing and storage, connected medical, and automotive markets. Dialog is headquartered near London with a global sales, R&D and marketing organization. In 2019, it had approximately $1.4 billion in revenue and is consistently one of the fastest growing European public semiconductor companies. It currently has approximately 2,300 employees worldwide. The company is listed on the Frankfurt (FWB: DLG) stock exchange (Regulated Market, Prime Standard, ISIN GB0059822006).

For more information, visit www.dialog-semiconductor.com.

Contact:
Jose Cano
Director, Investor Relations
jose.cano@diasemi.com
+44(0)1793756961

SOURCE: Dialog Semiconductor Plc.

ReleaseID: 601132

LONDON, UK / ACCESSWIRE / August 11, 2020 / Hemogenyx Pharmaceuticals plc (LSE:HEMO), the biopharmaceutical group developing new therapies and treatments for blood diseases, is pleased to announce that it has entered into a Sponsored Research Agreement ("Agreement") with the University of Pennsylvania ("Penn"). The goal of the Agreement is to advance the Chimeric Antigen Receptor ("CAR") T-cells ("HEMO-CAR-T") developed by the Company toward clinical trials. The Agreement is envisaged as the first step of a larger program that aims to achieve clinical proof of concept for HEMO-CAR-T for the treatment of acute myeloid leukemia ("AML").

Dr. Saar Gill, Assistant Professor of Medicine, a hematologist-oncologist physician scientist and Scientific co-Director of the Cell Therapy and Transplantation program at Penn, will serve as Principal Investigator on behalf of Penn. Dr. Gill's laboratory is part of the Center for Cellular Immunotherapies ("CCI"), whose Director, Dr. Carl H. June, conducted pioneering clinical trials of genetically engineered cells including CAR-T cells in patients with HIV and diverse forms of cancer.

Dr. Vladislav Sandler, CEO & Co-Founder of Hemogenyx Pharmaceuticals, commented: "This is a first and incredibly important step on a direct path to clinical trials for one of our leading product candidates. We are very pleased to be collaborating with the best and first institution that developed CAR-T technology into an approved and globally used treatment for leukemias, which has already saved so many lives. We are confident that this collaboration will dramatically accelerate the development of our CAR-T product candidate, which we believe will have a significant and positive impact in the treatment of acute myeloid leukemia, for which there is currently no real effective treatment."

About AML and CAR-T Therapy

AML, the most common type of acute leukemia in adults, has poor survival rates (a five-year survival rate of less than 30% in adults) and is currently treated using chemotherapy, rather than the potentially more benign and effective form of therapy being developed by Hemogenyx Pharmaceuticals. The successful development of the new therapy for AML would have a major impact on treatment and survival rates for the disease.

CAR-T therapy is a treatment in which a patient's own T-cells, a type of immune cell, are modified to recognize and kill the patient's cancer cells. The procedure involves: isolating T-cells from the patient; modifying the isolated T-cells in a laboratory using a CAR gene construct (which allows the cells to recognize the patient's cancer); amplifying (growing to large numbers) the newly modified cells; and re-introducing the cells back into the patient.

About the Center for Cellular Immunotherapies

CCI, under the directorship of Dr. Carl H. June, is focused on coordinated interdisciplinary approaches for the discovery and development of core platform technologies for personalized cell and gene-based therapies in cancer, autoimmune disease, infectious disease, and organ and bone marrow transplantation. CCI interacts with a coalition of investigators in nearly all departments and centers in the Perelman School of Medicine, driving the clinical translation of novel and investigational immune-based therapies. CCI's mission is to accelerate and synergize efforts that quickly transition fundamental immunobiology research into the clinic.

As mentioned above, CCI and the team of Dr. June have conducted numerous clinical trials with CAR T-cells in patients with HIV infection and diverse forms of cancer. The CAR T-cells invented in the June Laboratory were awarded "Breakthrough Therapy" status by the FDA for acute lymphoblastic leukemia ("ALL") in children and adults in 2014 and lymphoma for adults in 2018. This technology has been developed for widespread use by Novartis culminating with the FDA approval of the first CAR T-cell therapy Kymriah® (tisagenlecleucel) for the treatment of ALL in 2017.

About Dr. Saar Gill and the Gill Laboratory

Saar Gill, MD, PhD, obtained his medical degree from the University of Melbourne in Australia in 1999. He underwent internal medicine training at St Vincent's Hospital in Melbourne, followed by hematology training at the Peter MacCallum Cancer Centre and at the Royal Melbourne Hospital, which he completed in 2008. In 2008 he became a post-doctoral fellow at the laboratory of Robert Negrin at Stanford University, where he studied adoptive cellular therapy with NK cells. In 2011 Dr. Gill moved to the University of Pennsylvania where he did a BMT and Cellular Therapy fellowship under Dr. David Porter, and started working in the laboratory with Dr. Michael Kalos and Carl June on chimeric antigen receptor T-cells for the treatment of AML. Since 2013 the Gill Laboratory has focused on CAR-T cells for the treatment of AML.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Enquiries:

Hemogenyx Pharmaceuticals plc

https://hemogenyx.com

Dr Vladislav Sandler, Chief Executive Officer & Co-Founder

headquarters@hemogenyx.com

Peter Redmond, Director

peter.redmond@hemogenyx.com

SP Angel Corporate Finance LLP

Tel: +44 (0)20 3470 0470

Matthew Johnson, Vadim Alexandre, Soltan Tagiev

Peterhouse Capital Limited

Tel: +44 (0)20 7469 0930

Lucy Williams, Duncan Vasey, Charles Goodfellow

About Hemogenyx Pharmaceuticals plc

Hemogenyx Pharmaceuticals plc ("Hemogenyx") is a publicly traded company (LSE: HEMO) headquartered in London, with its US operating subsidiaries, Hemogenyx LLC and Immugenyx LLC, located in New York City at its state-of-the-art research facility.

Hemogenyx Pharmaceuticals is a pre-clinical stage biopharmaceutical group developing new medicines and treatments to bring the curative power of bone marrow transplantation to a greater number of patients suffering from otherwise incurable life-threatening diseases. The Company is developing several distinct and complementary product candidates, as well as a platform technology that it uses as an engine for novel product development.

For more than 50 years, bone marrow transplantation has been used to save the lives of patients suffering from blood diseases. The risks of toxicity and death that are associated with bone marrow transplantation, however, have meant that the procedure is restricted to use only as a last resort. Hemogenyx Pharmaceuticals' technology has the potential to enable many more patients suffering from devastating blood diseases such as leukemia and lymphoma, as well as severe autoimmune diseases such as multiple sclerosis, aplastic anemia and systemic lupus erythematosus (Lupus), to benefit from bone marrow transplantation.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Hemogenyx Pharmaceuticals PLC

ReleaseID: 601075

Measures under the Transform for Growth efficiency program defined and initiated – annual cost savings of around €100 million expected from 2022
Group guidance for 2020 remains under review; medium-term targets confirmed
Revenue target for China in 2022 raised to €800 million[1]

DEUTZ Group: overview of key figures

€ million
H1 2020
Change
Q2 2020
Change

New orders
623.6
-34.6%
266.9
-39.2%

Unit sales (units)
73,859
-27.3%
33,790
-37.3%

Revenue
620.0
-33.3%
280.2
-41.3%

EBIT
-49.9
<-100%
-38.1
<-100%

EBIT before exceptional items
-49.9
<-100%
-38.1
<-100%

EBIT margin
-8.0
–
-13.6
–

EBIT margin before exceptional items (%)
-8.0
–
-13.6
–

Net income
-52.3
<-100%
-42.3
<-100%

Net income before exceptional items
-52.3
<-100%
-42.3
<-100%

Earnings per share (€)
-0.43
<-100%
-0.35
<-100%

Earnings per share before exceptional items (€)
-0.43
<-100%
-0.35
<-100%

Equity ratio (%)
48.5
–
48.5
–

Cash flow from operating activities
-43.7
<-100%
-31.8
<-100%

Free cash flow
-85.7
-85.5%
-50.2
<+100%

Net financial position (at Jun. 30)
-117.8
<-100%
-117.8
<-100%

Employees (number as at Jun. 30)
4,673
-3.9%
4,673
-3.9%

COLOGNE, GERMANY / ACCESSWIRE / August 11, 2020 / DEUTZ, a leading global manufacturer of innovative drive systems, registered a significant overall decline in business performance in the first half of 2020 as a result of the coronavirus crisis. Demand slumped due to customers continuing to sell the inventories of engines they had built up before new emissions standards came into force, which had already led to a low level of orders on hand at the end of 2019, and due to the macroeconomic impact of the coronavirus pandemic in what was already a challenging market environment. Furthermore, business operations were significantly disrupted in the second quarter as a result of a temporary production shutdown and the introduction of short-time working.

"The adverse effects of the coronavirus pandemic on the global economy and thus on our engine business cannot be ignored. At present, nobody can predict how the coronavirus crisis will continue to unfold. However, it is clear that the entire DEUTZ team will do everything they can to ensure that we emerge stronger from the crisis. Despite the current situation, we believe we are on the right track to be able to achieve our medium-term targets," said DEUTZ CEO Dr. Frank Hiller. Commenting on the Transform for Growth efficiency program launched at the start of this year, he added: "To be competitive in the long term and ensure the Company stays on course for success, it is vital that we regularly review our processes and structures. We have done this and we expect implementation of the resulting action plan to generate annual cost savings totaling around €100 million from the end of 2022."

Sharp decline in sales figures as a result of the coronavirus crisis

In the period under review, the new orders received by DEUTZ fell by 34.6 percent year on year to €623.6 million. This was due not only to the sharp drop in new orders triggered by the coronavirus crisis but also to the high level of new orders in the prior-year period as a result of customers building up their inventories of engines before new emissions standards came into force. Customers then sold these engines, putting a further strain on the business.

The Construction Equipment, Material Handling, Agricultural Machinery, and Stationary Equipment application segments recorded double-digit percentage reductions in new orders. By contrast, the Miscellaneous application segment and the service business notched up further increases of 16.4 percent and 0.8 percent respectively. The sharp rise in the Miscellaneous application segment was primarily due to the growth in new orders for rail vehicle drive systems.

As at June 30, 2020, orders on hand stood at €253.5 million (June 30, 2019: €462.6 million).

The DEUTZ Group sold a total of 73,859 engines in the reporting period, which was 27.3 percent fewer than in the first half of 2019. Miscellaneous was the only application segment with an increase in unit sales, registering a substantial rise of 112.7 percent that was largely attributable to the introduction of small outboard motors known as trolling motors. The ramp-up of these motors enabled DEUTZ subsidiary Torqeedo to more than double its sales of boat motors to a total of 16,244, which equates to a year-on-year rise of 163.8 percent.

In the EMEA region (Europe, Middle East, and Africa), DEUTZ's biggest sales market, unit sales went down by 30.5 percent compared with the prior-year period to 37,763 engines. In the Americas region, unit sales fell by 47.4 percent to 14,726 engines. By contrast, unit sales in the Asia-Pacific region grew by 10.8 percent owing to the aforementioned ramp-up at Torqeedo.

The DEUTZ Group's revenue fell by 33.3 percent compared with the first six months of 2019 to €620.0 million. Revenue declined across the board, from both a regional and an application segment perspective.

Operating profit falls sharply, partly as a result of diseconomies of scale

The impact of the coronavirus pandemic on the business activities of the DEUTZ Group and its customers meant that DEUTZ reported an operating loss (EBIT before exceptional items) of €49.9 million in the first half of 2020. This significant decline compared with the prior-year period was attributable, in particular, to the fall in revenue and the resulting diseconomies of scale. There was also a heavy drag on operating profit from payments of around €10 million made under continuation agreements with suppliers that are going through insolvency proceedings and demand-related impairment losses of around €5 million recognized on capitalized development projects. However, there were some positive influences on earnings performance in addition to the general cost reductions and the use of short-time working: The Board of Management waived its one-year variable remuneration for 2020 and senior managers waived a substantial part of their variable remuneration for 2020. The EBIT margin stood at minus 8.0 percent in the reporting period, compared with 5.1 percent in the prior-year period.

DEUTZ Compact Engines (DCE): key figures for the segment

€ million
H1 2020
Change
Q2 2020
Change

New orders
439.9
-41.8%
184.6
-46.8%

Unit sales (units)
48,173
-41.2%
21,180
-50.7%

Revenue
453.7
-37.8%
197.8
-47.1%

EBIT before exceptional items
-49.8
<-100%
-33.1
<-100%

EBIT margin before exceptional items (%)
-11.0
–
-16.7
–

In the first half of 2020, the DCE segment's sales figures declined overall compared with the prior-year period. New orders came to €439.9 million, which was 41.8 percent lower than in the first six months of 2019. The breakdown by application segment reveals that only the service business recorded a rise in new orders, with an increase of 6.0 percent to €89.0 million that was primarily attributable to the expansion of on-site customer service business. The segment's unit sales declined by 41.2 percent to 48,173 engines and revenue contracted by 37.8 percent to €453.7 million, with decreases in all regions and application segments.

In the first six months of this year, the operating profit of the DEUTZ Compact Engines segment deteriorated by a substantial €84.7 million to a loss due to the collapse in demand triggered by the coronavirus pandemic. The segment's operating profit was weighed down by a fall in revenue of almost 38 percent, payments to suppliers going through insolvency proceedings to enable them to continue supplying DEUTZ, and impairment losses on a development project. These impairment losses were recognized due to the expected decrease in demand for the affected engine series.

DEUTZ Customized Solutions (DCS): key figures for the segment

€ million
H1 2020
Change
Q2 2020
Change

New orders
165.4
-8.4%
72.9
-12.8%

Unit sales (units)
9,442
-30.1%
4,889
-23.8%

Revenue
145.0
-21.6%
70.2
-25.2%

EBIT before exceptional items
6.6
-72.0%
-1.7
<-100%

EBIT margin before exceptional items (%)
4.6
–
-2.4
–

The DCS segment's sales figures also deteriorated in the period under review. New orders fell by 8.4 percent year on year to €165.4 million. Miscellaneous was the only application segment with an increase in new orders, registering a substantial rise of 52.6 percent to €29.6 million that was largely attributable to new orders for rail vehicle drive systems. The segment's total unit sales dropped by 30.1 percent to 9,442 engines. Only the Construction Equipment application segment recorded an increase, with its unit sales advancing by 13.7 percent to 1,755 engines thanks to the business involving drives for mining equipment. Revenue decreased across all regions and application segments, falling by 21.6 percent year on year to €145.0 million.

The operating profit for the segment deteriorated markedly compared with the first half of 2019. This was mainly due to the sharp decline caused by the global coronavirus pandemic in the reporting period. The segment's operating profit was also weighed down by impairment losses on two development projects that were recognized due to the expected decrease in demand for the affected engine series.

Other: key figures for the segment

€ million
H1 2020
Change
Q2 2020
Change

New orders
19.5
+4.8%
9.8
+4.3%

Unit sales (units)
16,244
>+100%
7,721
+72.1%

Revenue
22.5
+32.4%
12.6
+17.8%

EBIT before exceptional items
-6.7
+40.7%
-3.3
+35.3%

EBIT margin before exceptional items (%)
-29.8
–
-26.2
–

The Other segment includes not only Torqeedo's business with electric motors for boats but also Futavis GmbH, which was acquired in October 2019. Overall, the segment's business performance was positive in the reporting period. Despite the coronavirus crisis, new orders rose by 4.8 percent year on year to €19.5 million. In the first half of 2020, unit sales more than doubled to a total of 16,244 electric motors. This was primarily thanks to the ramp-up of trolling engines and led to a 32.4 percent jump in revenue to €22.5 million. All regions contributed to this growth.

In the period under review, the Other segment's operating loss improved by €4.6 million. This was mainly attributable to the deconsolidation of the joint venture DEUTZ AGCO Motores S.A., Haedo, Argentina, in the first half of 2019. As part of the deconsolidation, which was carried out for reasons of materiality, cumulative negative exchange differences were reclassified from equity to the income statement, which had a significant adverse impact on the segment's earnings in the prior-year period.

Full-year guidance for 2020 remains under review

The progression and timeline of the coronavirus crisis going forward is very difficult to predict, as is its impact on the economy and thus on DEUTZ's engine business. Consequently, it is still not possible to provide updated guidance for 2020 at the present time.

Fundamentally, it can be assumed that the remainder of 2020, particularly the third quarter, will continue to be heavily affected by the impact of the coronavirus crisis, although to a lesser extent than the second quarter.

It is now anticipated that the final installment of the purchase price for the Cologne-Deutz site, which had been expected as a positive exceptional item, will be paid in 2021 rather than this year. However, it is important to note that the amount and the date of this payment continue to depend on when the development plan for the site is formally approved and so cannot be precisely determined yet.

Medium-term targets confirmed

Despite the currently difficult situation, the Company reaffirms its current outlook for 2022, when it expects to generate revenue in excess of €2.0 billion and an EBIT margin before exceptional items in the range of 7 percent to 8 percent.

Growth is likely to be driven mainly by the continued internationalization and rapid expansion of the service business, but also by the expansion of the core business and the further development of the product portfolio. As a result, DEUTZ is also adhering to its revenue target for the service business, which it has brought forward to 2021 and envisages revenue of over €400 million.

In view of the restructuring of its business in China, DEUTZ raised its original revenue target for 2022 from around €500 million to around €800 million. This significant increase is due, in particular, to the fact that the planned volume for the joint venture already meets existing market demand and the intention is to gain further market share from competitors by implementing the China strategy.

Transform for Growth global efficiency program defined

At the start of the year, DEUTZ launched a Company-wide efficiency program, Transform for Growth, in order to further shore up its earnings performance in challenging conditions. The details of the underlying action plan were drawn up in the second quarter. The main areas of action are optimization of the global production network, automation and digitalization of production and administrative processes, and groupwide streamlining of the organizational structure.

By taking these measures, DEUTZ hopes to generate annual cost savings of around €100 million, with the full effect expected to be achieved from 2022 onward. As well as adjusting operating costs, a large part of the savings are to be achieved by reducing staff costs. This will involve a reduction in headcount of up to 1,000 across the Group, which will be implemented with the minimum possible social impact.

A total of 380 jobs have already been cut in the first half of this year, partly by reducing the number of temporary workers. Following on from this, DEUTZ is planning to launch a voluntary program encompassing a further 350 jobs at its sites in Germany. The remaining reduction in headcount is to be achieved by the end of 2022 as fixed-term contracts come to an end and through natural attrition.

"Our utmost objective is to avoid compulsory redundancies and find a socially responsible solution for our employees. We have therefore already entered into an ongoing dialog with the employee representatives to discuss the details of a voluntary program," stressed DEUTZ CEO Hiller.

Forward-looking statements

This investor news may contain certain forward-looking statements based on current assumptions and forecasts made by the DEUTZ management team. Various known and unknown risks, uncertainties, and other factors may lead to material differences between the actual results, the financial position, or the performance of the DEUTZ Group and the estimates and assessments set out here. These factors include those that DEUTZ has described in published reports, which are available at www.deutz.com. The Company does not undertake to update these forward-looking statements or to change them to reflect future events or developments.

About DEUTZ AG
DEUTZ AG, a publicly traded company headquartered in Cologne, Germany, is one of the world's leading manufacturers of innovative drive systems. Its core competencies are the development, production, distribution, and servicing of diesel, gas, and electric drive systems for professional applications. It offers a broad range of engines delivering up to 620 kW that are used in construction equipment, agricultural machinery, material handling equipment, stationary equipment, commercial vehicles, rail vehicles, and other applications. DEUTZ has around 4,900 employees worldwide and over 800 sales and service partners in more than 130 countries. It generated revenue of €1,840.8 million in 2019.

Further information is available at www.deutz.com.[1] The revenue target of approximately EUR800 million includes the revenue generated by the joint venture with SANY. Under the equity method, this revenue is not recognized in the consolidated financial statements.

Contact:
Leslie Isabelle Iltgen
Communications & Investor Relations
Senior Vice President
Tel. +49 (0) 221 822-36 00
Fax: +49 (0) 221 822-15 36 00
E-Mail: leslie.iltgen@deutz.com

SOURCE: DEUTZ AG

ReleaseID: 601129

Excellent financial performance and operational execution, pro-forma revenue up 27%

Ongoing focus on responsible gambling intensified during COVID-19

Maiden dividend declared, trading ahead of expectations

LONDON / ACCESSWIRE / August 11, 2020 / Gamesys Group plc (LSE:GYS) (the 'Group', 'Gamesys'), announces its financial results for the six months ended 30 June 2020.

Financial summary

Six months ended

30 June 2020

(£m)

Six months ended

30 June 2019

(£m)

Reported

change

(%)

Gaming revenue

 
 
340.0
 
 
 
169.5
 
 
 
101
 

Net income from continuing operations (as reported under IFRS)

 
 
23.3
 
 
 
5.3
 
 
 
340
 

Adjusted EBITDA[1],[2],[3]

 
 
95.0
 
 
 
54.3
 
 
 
75
 

Adjusted net income1,2,[4]

 
 
68.1
 
 
 
40.5
 
 
 
68
 

Diluted net income per share from continuing operations[5]

 
 
21.4p
 
 
 
7.1
p
 
 
201
 

Diluted adjusted net income per share from continuing operations1,2,4,5

 
 
62.6p
 
 
 
54.2
p
 
 
15
 

Pro-forma financial summary[6]

Six months ended

30 June 2020

(£m)

Six months ended

30 June 2019

(£m)

Change

(%)

Gaming revenue

 
 
340.0
 
 
 
267.3
 
 
 
27
 

Adjusted EBITDA1

 
 
95.0
 
 
 
81.2
 
 
 
17
 

Financial highlights

Excellent reported and pro-forma6 financial performance across the Group

Reported gaming revenue grew 101% year-on-year, reflecting continued exceptional growth in Asia and strong growth in the UK; on a pro-forma6 basis, gaming revenue increased 27% year-on-year
Adjusted EBITDA1 increased 75% year-on-year; on a pro-forma6 basis, it rose by 17% as Asia and the UK delivered strong results
Adjusted net income1,2,4 increased 68% year-on-year

Strong operating cash flow of £100.7m; cash conversion rate of 106% from adjusted EBITDA1

Cash balance of £136.0m at 30 June 2020 and adjusted net debt[7] of £391.7m
Adjusted net leverage ratio[8] of 2.83x at the end of 2019 has reduced to 2.27x at 30 June 2020 and we anticipate further deleveraging during the second half of 2020
The Board is pleased to declare an inaugural interim dividend of 12p per share to be paid in October, as well as the implementation of a broader dividend and capital allocation policy

Good trading has continued into the early part of Q3 across our major markets; given the strong performance in the first 7 months of the year, the Board now expects to report FY20 gaming revenue and adjusted EBITDA1 comfortably ahead of its prior expectations

Operational highlights (pro-forma)6

Revenues in the UK reflected a strong performance across all our major brands and were up 16% year-on-year, with an acceleration of growth during Q2; good player retention establishing a strong bedrock of active customers to drive sustainable growth in the future
Record performance in Asia, where revenues increased 92% year-on-year, driven by new customer growth, sustained momentum in Japan and the successful launch of our InterCasino brand
European revenues fell by 4%, with steady growth in Spain despite the introduction of restrictions on advertising and bonusing due to COVID-19; elsewhere, Germany performed strongly although the Nordics remain challenging
Revenues in ROW were up 2%, with the US recording revenue growth of 37% through Virgin Casino and the B2B contract with Tropicana Casino; overall performance in ROW impacted by the inclusion of discontinued markets, where we ceased trading in 2019
Ongoing improvement in core KPIs[9]:

Average Active Players per Month9 grew to 640,436 in the twelve months to 30 June 2020, an increase of 14% year-on-year
Average Real Money Gaming Revenue per Month9 grew to £50.9 million, an increase of 21% year-on-year
Monthly Real Money Gaming Revenue per Average Active Player9 of £80, an increase of 7% year-on-year

COVID-19 and responsible gambling

The Group continues to focus on providing a recreational and entertaining experience for our community of players to enjoy, and we have seen significant increases in chatroom engagement and non-wagering sessions
During the first half, we invested in additional resources and capabilities in our responsible gambling teams, including a 30% increase in budgeted headcount
Between Q1 and Q2, we experienced a significant increase in both the number of players setting deposit limits and also in our proactive outbound calls to customers to discuss their play
Upon entering COVID-19 lockdowns in Q2, we were the first operator to cease untargeted customer marketing in the UK, including the suspension of TV and radio campaigns
Continue to monitor COVID-19 developments and government guidelines carefully, as the health and wellbeing of our employees and players remains our top priority
We welcome the forthcoming review of the 2005 Gambling Act and look forward to contributing to an evidence-based assessment as to how to enhance the environment for responsible gambling
Extremely proud of the productivity and focus that has been maintained by our teams across the Group, particularly during what has been a difficult time for many people and their families

Capital allocation

The Group has a very strong record of cash flow generation and the Board expects a high cash conversion rate from adjusted EBITDA1 to continue going forward. An adjusted net leverage ratio8 of 2.83x at the end of 2019 has reduced to 2.27x at 30 June 2020 and we anticipate further deleveraging during the second half of 2020
We have consistently said that our long-term strategy is to reduce adjusted net leverage ratio8 to a target range of 1x to 2x adjusted EBITDA1 and to commence dividend payments, with the retained ability to launch a sustained share buyback programme if the Board believes it is appropriate. Given we are very much on track to achieve our target leverage, the Board believes that now is the right time to commence returns of cash to shareholders
The Directors are pleased to declare an inaugural interim dividend of 12p per share and the implementation of a broader dividend and capital allocation policy. The interim dividend will be paid on or around 15 October 2020 to shareholders who are on the register of members on 11 September 2020
The Board intends to implement a progressive dividend policy going forward, in order to align the Group with its listed peers in the UK, which is expected to be split 33%:67% between an interim and final dividend. While adopting this policy, it remains the intention of the Board to use the Group's strong cash generation to reduce Group adjusted net leverage ratio8 to our target of below 2x adjusted EBITDA1
The Directors believe that this policy, coupled with the Group's continued strong cash generation, will provide valued returns to shareholders while retaining sufficient cash within the Group to further reduce leverage and potentially undertake bolt-on acquisitions to accelerate growth. The Group's cash position will also provide flexibility to undertake returns to shareholders through share buyback programmes, should the Directors consider it to be the best use of excess capital at that time
The Board will continue to assess the availability of any excess capital and carefully evaluate any identified opportunities (debt repayment, returns to shareholders, etc.) against the long-term benefit of organic investment and value-enhancing M&A. We intend to remain flexible and agile in the implementation of our corporate strategy in relation to the balance between cash conservation, debt paydown, potential bolt-on acquisitions and returning cash to shareholders

Neil Goulden, Executive Chair, Gamesys Group plc, commented:

"The Group has produced a strong first half financial performance despite the clear and striking challenges posed by the COVID-19 pandemic. I would like to acknowledge the hard work and dedication of all our employees across the Group during this difficult time, without which we would not have been able to deliver a safe and enjoyable experience for our customers. Having led the Group through a transformational period – one that has seen us relist on the London Stock Exchange; subsequently obtain a Premium Listing; successfully merge with and rebrand as Gamesys; become a FTSE-250 constituent; and now introduce a progressive dividend policy – I believe the time is right for me to return to the position of non-executive Chair, which will be effective from 1 October 2020. Following the Gamesys Acquisition in September 2019, we now have an exceptionally strong executive team in place and have successfully integrated the two businesses and delivered strong, sustainable results. The business is in very good hands and I look forward to supporting Lee and his team going forward."

Lee Fenton, CEO, Gamesys Group plc, added:

"It has been very pleasing to oversee another strong half-year performance, with reported gaming revenues doubling across the Group year-on-year. Our strong brands, operational control and proprietary technology have allowed us to drive growth in established markets such as the UK, while also delivering strong results in fast-growing markets in Asia and ROW. At the heart of this has been our commitment to responsible gambling, which was vital during a period in which many of our players were living in lockdown. As a result, we took decisive action during the period to enhance our player protection, both through investing in new capabilities and resources, and also ceasing certain marketing activities. We believe that this enlarged and highly engaged customer base will be key to driving sustainable growth in the future, positioning us well for the exciting opportunities ahead."

Conference call

A conference call for analysts and investors will be held today at 1.00pm BST / 8.00am ET. To participate, interested parties are asked to dial +44 (0) 20 3003 2666 (standard access); +1 866 378- 3566 (Canada); or +1 866 966-5335 (US), 10 minutes prior to the scheduled start of the call using the reference "Gamesys". A replay of the conference call will be available for 30 days by dialling +44 (0) 20 8196 1998 or + 1 866 595 5357 and using reference 2751983#. A transcript will also be made available on Gamesys Group plc's website at www.gamesysgroup.com/investors

Enquiries

Gamesys Group plc

Jason Holden

Director of Investor Relations

jason.holden@gamesysgroup.com

+44 (0) 207 478 8150

Finsbury

gamesysgroup-LON@finsbury.com

+44 (0) 207 251 3801

James Leviton, Robert Allen

Please click on or paste the following URL into your web browser to view the announcement in full:

http://www.rns-pdf.londonstockexchange.com/rns/7168V_1-2020-8-10.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Gamesys Group plc

ReleaseID: 601115

EVOTEC IN-LICENSES HIGHLY INNOVATIVE RESOLUTE PROGRAMME WITH THE POTENTIAL TO DEVELOP NEW CLASS OF BROAD-SPECTRUM ANTIBIOTIC
CARB-X SUPPORTS THE PROJECT WITH UP TO $ 8.44 M

HAMBURG, GERMANY / ACCESSWIRE / August 11, 2020 / Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, ISIN: DE0005664809) announced today that the Company has entered into a new partnership with the Biotech company Resolute Therapeutics ("Resolute") to combat infectious diseases and antimicrobial resistance. The partnership aims to develop a broad-spectrum antibiotic with a new mode of action compared to antibiotics currently on the market and will receive substantial funding from CARB-X (Combating Antibiotic-Resistant Bacteria Biopharmaceutical Accelerator), a global non-profit partnership led by Boston University and dedicated to funding and supporting the development of therapeutics, vaccines and rapid diagnostics to address the most serious drug-resistant bacteria.

Under the terms of the agreement, Evotec will in-license a promising research programme from Resolute currently in lead optimisation and continue the pre-clinical development on the Company's proprietary drug discovery and development platforms. The goal of the partnership is to develop a novel broad-spectrum antibiotic with both Gram-positive and Gram-negative coverage for indications including complicated urinary tract, intra-abdominal infections and hospital-acquired pneumonia. The compounds developed within the programme engage with two validated antibacterial targets but exhibit a novel mode of action.

Evotec will receive an award from CARB-X of up to $ 2.91 m over the next two years plus an additional $ 5.53 m over the three following years if certain project milestones are met, which will cover a substantial part of Evotec's expenses. Resolute will receive an undisclosed upfront payment from Evotec as well as success-based milestone payments while Evotec retains the right to take over the project at a pre-agreed value inflection point and subsequently continue the development with other potential clinical and marketing partners.

Dr Cord Dohrmann, Chief Scientific Officer of Evotec, commented: "We are delighted to license this highly innovative antibacterial programme from Resolute. New antibiotics are urgently needed, particularly those that hold significant promise to overcome antimicrobial resistance. The significant support from CARB-X further validates the approach and we are optimistic to rapidly drive this programme to clinical proof of concept and beyond."

Dr John Finn, President of Resolute Therapeutics, said: "We are excited to partner with Evotec to advance this important program and to have the CARB-X support. The antibacterial team at Evotec is very accomplished and brings a strong set of tools throughout all aspects of antibacterial preclinical research and development. We have enjoyed a close collaboration with the Evotec scientific team to draft the plan and feel confident that this team can deliver a new class of broad-spectrum antibacterial agents into the clinic."

"Serious hospital-acquired infections are a serious threat globally, and new antibiotics are urgently needed," said Erin Duffy, Ph. D., R&D Chief of CARB-X. "Evotec's compounds constitute a new antibacterial class which, if eventually approved for use in the treatment of serious multidrug-resistant bacterial infections, would represent significant progress in the race against drug resistant pathogens."

ABOUT CARB-X
CARB-X (Combating Antibiotic-Resistant Bacteria Biopharmaceutical Accelerator) is a global non-profit partnership dedicated to supporting early development antibacterial R&D to address the rising threat of drug-resistant bacteria. CARB-X is led by Boston University and funding is provided by the Biomedical Advanced Research and Development Authority (BARDA), part of the Office of the Assistant Secretary for Preparedness and Response (ASPR) in the US Department of Health and Human Services; the Wellcome Trust, a global charity based in the UK working to improve health globally; Germany's Federal Ministry of Education and Research (BMBF); the UK Department of Health and Social Care's Global Antimicrobial Resistance Innovation Fund (GAMRIF); the Bill & Melinda Gates Foundation, and with in-kind support from National Institute of Allergy and Infectious Diseases (NIAID), part of the US National Institutes of Health (NIH) within the US Department of Health and Human Services. CARB-X is investing up to US$500 million from 2016-2021 to support innovative antibiotics and other therapeutics, vaccines and rapid diagnostics. CARB-X supports the world's largest and most innovative pipeline of preclinical products against drug-resistant infections. CARB-X focuses exclusively on high priority drug-resistant bacteria, especially Gram-negatives. CARB-X is headquartered at Boston University School of Law. https://carb-x.org/. Follow us on Twitter @CARB_X

[Disclaimer]: Research reported in this press release is supported by the Cooperative Agreement Number IDSEP160030 from ASPR/BARDA and by awards from Wellcome Trust and Germany's Federal Ministry of Education and Research, as administrated by CARB-X. The content is solely the responsibility of the authors and does not necessarily represent the official views of the Department of Health and Human Services Office of the Assistant Secretary for Preparedness and Response, other funders, or CARB-X.

Media contact CARB-X:
Jennifer Robinson
carbxpr@bu.edu

ABOUT EVOTEC SE
Evotec is a drug discovery alliance and development partnership company focused on rapidly progressing innovative product approaches with leading pharmaceutical and biotechnology companies, academics, patient advocacy groups and venture capitalists. We operate worldwide and our more than 3,000 employees provide the highest quality stand-alone and integrated drug discovery and development solutions. We cover all activities from target-to-clinic to meet the industry's need for innovation and efficiency in drug discovery and development (EVT Execute). The Company has established a unique position by assembling top-class scientific experts and integrating state-of-the-art technologies as well as substantial experience and expertise in key therapeutic areas including neuronal diseases, diabetes and complications of diabetes, pain and inflammation, oncology, infectious diseases, respiratory diseases, fibrosis, rare diseases and women's health. On this basis, Evotec has built a broad and deep pipeline of approx. 100 co-owned product opportunities at clinical, pre-clinical and discovery stages (EVT Innovate). Evotec has established multiple long-term alliances with partners including Bayer, Boehringer Ingelheim, Bristol-Myers Squibb, CHDI, Novartis, Novo Nordisk, Pfizer, Sanofi, Takeda, UCB and others. For additional information please go to www.evotec.com and follow us on Twitter @Evotec.

FORWARD LOOKING STATEMENTS
Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. The forward-looking statements contained herein represent the judgement of Evotec as of the date of this press release. Such forward-looking statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

Contact Evotec SE:
Gabriele Hansen, SVP Head of Global Communications & Marketing, Phone: +49.(0)40.56081-255, gabriele.hansen@evotec.com

SOURCE: Evotec AG via EQS Newswire

ReleaseID: 601128

Excellent financial performance and operational execution, pro-forma revenue up 27%

Ongoing focus on responsible gambling intensified during COVID-19

Maiden dividend declared, trading ahead of expectations

LONDON, UK / ACCESSWIRE / August 11, 2020 / Gamesys Group plc (LSE:GYS) (the 'Group', 'Gamesys'), announces its financial results for the six months ended 30 June 2020.

Financial summary

Six months ended

30 June 2020

(£m)

Six months ended

30 June 2019

(£m)

Reported

change

(%)

Gaming revenue

 
 
340.0
 
 
 
169.5
 
 
 
101
 

Net income from continuing operations (as reported under IFRS)

 
 
23.3
 
 
 
5.3
 
 
 
340
 

Adjusted EBITDA[1],[2],[3]

 
 
95.0
 
 
 
54.3
 
 
 
75
 

Adjusted net income1,2,[4]

 
 
68.1
 
 
 
40.5
 
 
 
68
 

Diluted net income per share from continuing operations[5]

 
 
21.4p
 
 
 
7.1
p
 
 
201
 

Diluted adjusted net income per share from continuing operations1,2,4,5

 
 
62.6p
 
 
 
54.2
p
 
 
15
 

Pro-forma financial summary6

Six months ended

30 June 2020

(£m)

Six months ended

30 June 2019

(£m)

Change

(%)

Gaming revenue

 
 
340.0
 
 
 
267.3
 
 
 
27
 

Adjusted EBITDA1

 
 
95.0
 
 
 
81.2
 
 
 
17
 

Financial highlights

Excellent reported and pro-forma6 financial performance across the Group

Reported gaming revenue grew 101% year-on-year, reflecting continued exceptional growth in Asia and strong growth in the UK; on a pro-forma6 basis, gaming revenue increased 27% year-on-year
Adjusted EBITDA1 increased 75% year-on-year; on a pro-forma6 basis, it rose by 17% as Asia and the UK delivered strong results
Adjusted net income1,2,4 increased 68% year-on-year

Strong operating cash flow of £100.7m; cash conversion rate of 106% from adjusted EBITDA1

o Cash balance of £136.0m at 30 June 2020 and adjusted net debt7 of £391.7m
o Adjusted net leverage ratio8 of 2.83x at the end of 2019 has reduced to 2.27x at 30 June 2020 and we anticipate further deleveraging during the second half of 2020
o The Board is pleased to declare an inaugural interim dividend of 12p per share to be paid in October, as well as the implementation of a broader dividend and capital allocation policy

Good trading has continued into the early part of Q3 across our major markets; given the strong performance in the first 7 months of the year, the Board now expects to report FY20 gaming revenue and adjusted EBITDA1 comfortably ahead of its prior expectations

Operational highlights (pro-forma)6

Revenues in the UK reflected a strong performance across all our major brands and were up 16% year-on-year, with an acceleration of growth during Q2; good player retention establishing a strong bedrock of active customers to drive sustainable growth in the future
Record performance in Asia, where revenues increased 92% year-on-year, driven by new customer growth, sustained momentum in Japan and the successful launch of our InterCasino brand
European revenues fell by 4%, with steady growth in Spain despite the introduction of restrictions on advertising and bonusing due to COVID-19; elsewhere, Germany performed strongly although the Nordics remain challenging
Revenues in ROW were up 2%, with the US recording revenue growth of 37% through Virgin Casino and the B2B contract with Tropicana Casino; overall performance in ROW impacted by the inclusion of discontinued markets, where we ceased trading in 2019
Ongoing improvement in core KPIs9:

Average Active Players per Month9 grew to 640,436 in the twelve months to 30 June 2020, an increase of 14% year-on-year
Average Real Money Gaming Revenue per Month9 grew to £50.9 million, an increase of 21% year-on-year
Monthly Real Money Gaming Revenue per Average Active Player9 of £80, an increase of 7% year-on-year

COVID-19 and responsible gambling

The Group continues to focus on providing a recreational and entertaining experience for our community of players to enjoy, and we have seen significant increases in chatroom engagement and non-wagering sessions
During the first half, we invested in additional resources and capabilities in our responsible gambling teams, including a 30% increase in budgeted headcount
Between Q1 and Q2, we experienced a significant increase in both the number of players setting deposit limits and also in our proactive outbound calls to customers to discuss their play
Upon entering COVID-19 lockdowns in Q2, we were the first operator to cease untargeted customer marketing in the UK, including the suspension of TV and radio campaigns
Continue to monitor COVID-19 developments and government guidelines carefully, as the health and wellbeing of our employees and players remains our top priority
We welcome the forthcoming review of the 2005 Gambling Act and look forward to contributing to an evidence-based assessment as to how to enhance the environment for responsible gambling
Extremely proud of the productivity and focus that has been maintained by our teams across the Group, particularly during what has been a difficult time for many people and their families

Capital allocation

The Group has a very strong record of cash flow generation and the Board expects a high cash conversion rate from adjusted EBITDA1 to continue going forward. An adjusted net leverage ratio8 of 2.83x at the end of 2019 has reduced to 2.27x at 30 June 2020 and we anticipate further deleveraging during the second half of 2020
We have consistently said that our long-term strategy is to reduce adjusted net leverage ratio8 to a target range of 1x to 2x adjusted EBITDA1 and to commence dividend payments, with the retained ability to launch a sustained share buyback programme if the Board believes it is appropriate. Given we are very much on track to achieve our target leverage, the Board believes that now is the right time to commence returns of cash to shareholders
The Directors are pleased to declare an inaugural interim dividend of 12p per share and the implementation of a broader dividend and capital allocation policy. The interim dividend will be paid on or around 15 October 2020 to shareholders who are on the register of members on 11 September 2020
The Board intends to implement a progressive dividend policy going forward, in order to align the Group with its listed peers in the UK, which is expected to be split 33%:67% between an interim and final dividend. While adopting this policy, it remains the intention of the Board to use the Group's strong cash generation to reduce Group adjusted net leverage ratio8 to our target of below 2x adjusted EBITDA1
The Directors believe that this policy, coupled with the Group's continued strong cash generation, will provide valued returns to shareholders while retaining sufficient cash within the Group to further reduce leverage and potentially undertake bolt-on acquisitions to accelerate growth. The Group's cash position will also provide flexibility to undertake returns to shareholders through share buyback programmes, should the Directors consider it to be the best use of excess capital at that time
The Board will continue to assess the availability of any excess capital and carefully evaluate any identified opportunities (debt repayment, returns to shareholders, etc.) against the long-term benefit of organic investment and value-enhancing M&A. We intend to remain flexible and agile in the implementation of our corporate strategy in relation to the balance between cash conservation, debt paydown, potential bolt-on acquisitions and returning cash to shareholders

Neil Goulden, Executive Chair, Gamesys Group plc, commented:

"The Group has produced a strong first half financial performance despite the clear and striking challenges posed by the COVID-19 pandemic. I would like to acknowledge the hard work and dedication of all our employees across the Group during this difficult time, without which we would not have been able to deliver a safe and enjoyable experience for our customers. Having led the Group through a transformational period – one that has seen us relist on the London Stock Exchange; subsequently obtain a Premium Listing; successfully merge with and rebrand as Gamesys; become a FTSE-250 constituent; and now introduce a progressive dividend policy – I believe the time is right for me to return to the position of non-executive Chair, which will be effective from 1 October 2020. Following the Gamesys Acquisition in September 2019, we now have an exceptionally strong executive team in place and have successfully integrated the two businesses and delivered strong, sustainable results. The business is in very good hands and I look forward to supporting Lee and his team going forward."

Lee Fenton, CEO, Gamesys Group plc, added:

"It has been very pleasing to oversee another strong half-year performance, with reported gaming revenues doubling across the Group year-on-year. Our strong brands, operational control and proprietary technology have allowed us to drive growth in established markets such as the UK, while also delivering strong results in fast-growing markets in Asia and ROW. At the heart of this has been our commitment to responsible gambling, which was vital during a period in which many of our players were living in lockdown. As a result, we took decisive action during the period to enhance our player protection, both through investing in new capabilities and resources, and also ceasing certain marketing activities. We believe that this enlarged and highly engaged customer base will be key to driving sustainable growth in the future, positioning us well for the exciting opportunities ahead."

Conference call

A conference call for analysts and investors will be held today at 1.00pm BST / 8.00am ET. To participate, interested parties are asked to dial +44 (0) 20 3003 2666 (standard access); +1 866 378- 3566 (Canada); or +1 866 966-5335 (US), 10 minutes prior to the scheduled start of the call using the reference "Gamesys". A replay of the conference call will be available for 30 days by dialling +44 (0) 20 8196 1998 or + 1 866 595 5357 and using reference 2751983#. A transcript will also be made available on Gamesys Group plc's website at www.gamesysgroup.com/investors

Enquiries

Gamesys Group plc

Jason Holden

Director of Investor Relations

jason.holden@gamesysgroup.com

+44 (0) 207 478 8150

Finsbury

gamesysgroup-LON@finsbury.com

+44 (0) 207 251 3801

James Leviton, Robert Allen

Click on or paste the following URL into your web browser to view the announcement in full:

http://www.rns-pdf.londonstockexchange.com/rns/7169V_1-2020-8-10.pdf

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE:  Gamesys Group PLC

ReleaseID: 601124