xbrli:pureiso4217:DKK405594932023-01-012023-12-31cmn:ConsolidatedMember405594932023-01-012023-12-311cmn:ConsolidatedMember405594932023-01-012023-12-31fsa:LiquidationAccountMembercmn:ConsolidatedMember405594932023-01-012023-12-311cmn:ConsolidatedMember405594932023-01-012023-12-311405594932023-01-012023-12-312405594932023-01-012023-12-313405594932022-01-012022-12-31cmn:ConsolidatedMember405594932023-01-012023-12-31405594932022-01-012022-12-31405594932023-01-012023-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember405594932023-01-012023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember405594932023-01-012023-12-31fsa:RetainedEarningsMember405594932023-12-31cmn:ConsolidatedMember405594932022-12-31cmn:ConsolidatedMember405594932023-12-31405594932022-12-31405594932023-01-01cmn:ConsolidatedMember405594932022-01-01cmn:ConsolidatedMember405594932023-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember405594932023-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember405594932023-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember405594932023-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember405594932023-01-01fsa:ContributedCapitalMember405594932023-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember405594932023-01-01fsa:RetainedEarningsMember405594932023-01-01405594932023-12-31fsa:ContributedCapitalMember405594932023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember405594932023-12-31fsa:RetainedEarningsMember405594932023-01-012023-12-311cmn:ConsolidatedMember405594932022-01-012022-12-311cmn:ConsolidatedMember405594932023-01-012023-12-31fsa:OtherShorttermPayablesMembercmn:ConsolidatedMember405594932023-01-012023-12-31fsa:OtherShorttermPayablesMemberGrundlag for konklusionKonklusion2024-03-212024-03-2133963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, mellemstor virksomhed2022-12-312022-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2023-12-312023-01-01Cego Holding ApS40559493ÅrsrapportAalborg900026, 4. salØstre HavnepromenadeAalborgAalborg90004<br /><br />1Lauritzens Plads0The Board of Directors and the Executive Board have today considered and approved the annual report of Cego Holding ApS for the financial year 01.01.2023 - 31.12.2023.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2023 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2023 - 31.12.2023.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.AalborgJacob Frederik ChristensenPeter Thorlund HaahrJacob Frederik ChristensenAnders Gautier ChristensenChairmanTo the shareholders of Cego Holding ApSWe have audited the consolidated financial statements and the parent financial statements of Cego Holding ApS for the financial year 01.01.2023 - 31.12.2023, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2023 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2023 - 31.12.2023 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional
requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further
described in the "Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements" section of this auditor’s
report. We are independent of the Group in accordance
with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled
our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.Management is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in
accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements and parent financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
<br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group's and the Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent financial statements, and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Entity’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group and the Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required by relevant law and regulations.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary.AalborgRené Winther Pedersenmne34173State Authorised Public AccountantFinancial highlights2023
DKK'0002022
DKK'0002021
DKK'0002020
DKK'0002019
DKK'000Key figuresGross profit/loss129,713156,897163,736215,36566,564Operating profit/loss(11,096)22,06232,923101,3763,633Net financials(29,162)(19,338)(13,916)(9,273)(1,922)Profit/loss for the year(42,249)(8,276)5,87861,017(5,808)Balance sheet total937,9441,000,1351,030,6911,045,0101,076,310Investments in property, plant and equipment1,9051,6243,1431,69012,524Equity512,487554,736563,014555,208494,191Cash flows from operating activities25,59459,79390,286121,89835,214Cash flows from investing activities(27,067)(26,894)(22,880)(21,201)(1,101,995)Cash flows from financing activities(27,000)(20,442)(37,534)(94,200)1,032,500RatiosReturn on equity (%)(7.92)(1.48)1.0511.63(1.20)Equity ratio (%)54.6455.4754.6253.1345.92Financial highlights are defined and calculated in accordance with the current version of "Recommendations &
Ratios" issued by the CFA Society Denmark.Return on equity (%)
:Profit/loss for the year * 100
Average equityEquity ratio (%)
:Equity * 100
Balance sheet totalPrimary activitiesCEGO Holding (henceforth: CEGO) develops and operates online casino products, focusing on the Casual Segment. CEGO currently has online casino activities in Denmark, Sweden, and the UK. CEGO operates subject to license requirements and is exposed to competition under local gambling jurisdictions.
The purpose of CEGO Holding is to own shares in other companies and businesses related hereto.
Development in activities and financesCEGO is currently present in three markets with its casual online casino offerings. In Denmark, it operates www.spilnu.dk, which has been in operation since the liberalization of the Danish market in 2012. In Sweden, www.lyckost.se was launched in 2020, and since 2021, CEGO has also entered the UK market with happytiger.co.uk.
The online casino activities involve the offering of slot machines, Bingo, and Casino, all running on an in-house-built platform. This platform has been optimized to support a continuously strong customer experience in the future and to facilitate commercial initiatives designed for multi-market operations.
CEGO's in-house studio has achieved notable success in 2023, having developed and launched seven distinct in-house slot machines, alongside the introduction of Bingo 90, all tailored to cater to casual players.
CEGO embarked on international investments in 2020, with plans to sustain and expand these efforts in the foreseeable future. The focus in 2024 will be on leveraging the momentum attained in the UK market and intensifying operational efforts in this region. Concurrently, CEGO aims to uphold its status as the preferred casual iCasino operator in Denmark. Consequently, the company intends to discontinue operations in Sweden during 2024
Responsible Gambling
CEGO’s primary objective is to offer casual, fun, and entertaining games. We take an active role in creating a healthy environment where players feel safe and well-taken care of. Responsibility in gambling is an inherent part of our core values and the way we work. All employees receive responsible gambling training, and it is an integrated part of our daily operations.
Responsibility is at the forefront of our employees' minds when creating marketing content, new games, etc. Additionally, the Customer Support Team undergoes extra training to ensure a high level of attention towards potential adverse gambling behavior and to initiate safer gambling protocols when needed. The Customer Support Team is supervised in the area of responsible gambling by both an internal and external psychologist.
Being responsible is not a single action or intervention but the sum of a series of initiatives. At CEGO, these initiatives are implemented based on our overall approach, which is to be aware of and understand our players, helping them prevent potential unhealthy gambling patterns. We strive to do so in an incident-based, respectful, and personalized manner. One of the ways we achieve this is through Care Calls to players, performed by our in-house psychologist or personnel trained by experts in the field of problem gambling. We collaborate with external psychologists and support third-party research projects, both financially and with our extensive knowledge, to increase awareness and responsibility in gambling for the betterment of our players and society.
We monitor our players' behavior using software that analyzes Big Data. This information is used in dialogue with the players to proactively support changes in their behavior if it indicates that playing for fun may be at risk.
Furthermore, we continuously stay updated on the newest research to enhance our processes and support our players in the best possible way.
At CEGO we aim to maintain our collaboration with external experts/organizations and stakeholders, supporting a continuously safe gambling environment for our customers. Overall, CEGO strives to create a safe environment for our players that encourages and enables them to maintain a healthy approach towards gambling.
Diversity, recruitment, and employee composition
The CEGO company culture is rooted in entrepreneurship, agility, a flat hierarchy, and, above all, an openness to new developments, diverse ways of working, and new colleagues. CEGO is dedicated to providing equal opportunities to individuals, irrespective of gender, ethnicity, race, political views, religion, or sexual orientation.
We embrace all facets of diversity, recognizing the importance of both the right skillset and mindset. Recruitment and promotion of managers at CEGO are aimed at fostering diversity within the leadership team.
Our goal is to become the preferred employer in the IT, gaming, and software sectors in our local market. We focus on attracting talent and providing our colleagues and employees with the best opportunities to ensure a long and rewarding tenure within CEGO.
In 2023, the CEGO Group welcomed 11 new employees while 15 employees departed. Of the new joiners, 20% are female. The current gender composition is 80% male and 20% female, with a more balanced distribution in departments other than IT development. The average seniority at CEGO is more than 5 years. We prioritize our employees' well-being, believing that thriving employees enhance our company culture and contribute to the best results for both the individual and the company.
CEGO is more than just a workplace; it's a culture. We consider ourselves a family, and we eagerly anticipate welcoming new family members. Social activities, ranging from weekly board game nights to physical workouts and in-house sports tournaments, are integral to our culture. We also prioritize physical and mental well-being by offering flexible working conditions, easy access to health insurance, free gym access, and more.
CEGO upholds and respects internationally recognized labor rights as specified in the International Labor Organization (ILO) core conventions. We comply with all applicable federal, state, and local laws and regulations regarding employer/employee rights and obligations, including the right to freedom of association and collective bargaining. Additionally, we have initiatives that strengthen diversity right from the recruitment process, such as participating in HR fairs, designing inclusive job advertisements, and actively leveraging our employees' networks.
Governance
The CEGO business must always be governed in a legally compliant manner, supporting the optimal protection of customers and employees within CEGO. Through our robust compliance frameworks, policies, procedures, workflows, and educational programs, we ensure that CEGO's governance and business ethics adhere to the highest standards.
All revenue in CEGO is generated from licensed markets. By operating exclusively in domestically regulated markets, CEGO can guarantee our customers the highest standards of quality in player protection and gambling products, certified in accordance with the license requirements in the applicable jurisdiction.
Profit/loss for the year in relation to expected developmentsLoss for the year is DKK 42.2 million. The loss for the year is impacted by the increased investments in new market growth.OutlookManagement expects continued investments in growth in 2024 leading to a loss in the range DKK 20 to 40 million.
Knowledge resourcesCEGO is dedicated to maintaining a leading position in the adoption of new technologies across platform operations, product development, and compliance, with a primary focus on catering to casual players. The expertise of CEGO’s personnel is pivotal to all aspects of the business and the Group.Research and development activitiesThe company capitalizes development costs incurred during internal projects related to Games and Platform development. In the fiscal year 2023, the company capitalized DKK 25 million on such development projects. This capitalization primarily pertains to salaries allocated to these projects.129713000156897000-365000-101000683250006616100078000007210300068510000381000164000-1109600022062000-1145000-1010005490001390004100030002971100019477000262500058000-402580002724000-43029000-8310000199100011000000-780000-34000-42249000-8276000-42249000-42249000-82760000-42249000517790004908500031000069600077910500082910100012938000103530008441320008892350002581000267700017800050500027590003182000123200012320001580000164700028120002879000566406000553206000849703000895296000566406000553206000227200001430500013600007770006679000380200030759000188840001086000112800005748200085955000859550007349800010566000150008824100010483900011652000112950009379440001000135000578058000564501000502000502000502000502000511985000554234000498079000501028000512487000554736000502000554234000554736000502000511985000512487000554736000502000532060005010280005547360005020001390600049807900013913000129170001391300012917000225506000278444000693050003633000654690000294811000282077000654690000625000001000000002000200016636000127020001441900089140009700009049000091490002220600019738000100000960001167330001504050001020009765000411544000432482000655710009765000937944000100013500057805800056450100072103000686740002720007410006127900091477000543000139000-27179000-19477000-9049000-1234600025594000597930000-298000-1905000-1624000Capitalization of development costs-25162000-24972000-27067000-26894000-147300032899000630000000-90000000-20442000-27000000-20442000-284730001245700057482000859550001 Staff costs2023
DKK'0002022
DKK'000Wages and salaries61,06359,169Pension costs5,9885,704Other social security costs1,2741,28868,32566,161Average number of full-time employees106109Remunerationof management
2023
DKK'000Remunerationof management
2022
DKK'000Total amount for management categories3002,2383002,238According to section 98B(3) no.2 of the Danish Financial Statement Act, remuneration to management has been
disclosed together under one category, as it otherwise will lead to an individual’s remuneration being disclosed.
The group has issued a warrant program in order to motivate the participants to work in the best interest of the Group and to motivate the participants to work for the realisation of any business strategy and to retain participants in their employment, etc. within the group.1 Staff costs2023
DKK'0002022
DKK'000Wages and salaries78007800Remunerationof
Manage- ment
2023
DKK'000Total amount for management categories300300According to section 98B(3) no.2 of the Danish Financial Statement Act, remuneration to management has been
disclosed together under one category, as it otherwise will lead to an individual’s remuneration being disclosed. Management did not recieve remuneration from the parent entity in 2022.
The company has issued a warrant program in order to motivate the participants to work in the best interest of the Group and to motivate the participants to work for the realisation of any business strategy and to retain participants in their employment, etc. within the group.106109Remunerationof management
2023
DKK'000Remunerationof management
2022
DKK'000Total amount for management categories3002,2383002,238Remunerationof
Manage- ment
2023
DKK'000Total amount for management categories30030030000022380003000002 Depreciation, amortisation and impairment losses2023
DKK'0002022
DKK'000Amortisation of intangible assets68,84466,462Impairment losses on intangible assets1,0560Depreciation on property, plant and equipment2,2032,04872,10368,5103 Other financial income2023
DKK'0002022
DKK'000Other interest income39351Exchange rate adjustments632Other financial income150565491392 Other financial income2023
DKK'0002022
DKK'000Financial income from group enterprises293Other interest income1204134 Other financial expenses2023
DKK'0002022
DKK'000Other interest expenses28,33917,894Exchange rate adjustments501629Other financial expenses87195429,71119,4772023
DKK'0002022
DKK'000Other interest expenses28,33917,894Exchange rate adjustments501629Other financial expenses87195429,71119,477<br />3 Other financial expenses2023
DKK'0002022
DKK'000Financial expenses from group enterprises252Other interest expenses2,62362,62558<br />2023
DKK'0002022
DKK'000Financial expenses from group enterprises252Other interest expenses2,62362,625585 Tax on profit/loss for the year2023
DKK'0002022
DKK'000Current tax9959,149Change in deferred tax9961,8511,99111,0004 Tax on profit/loss for the year2023
DKK'0002022
DKK'000Refund in joint taxation arrangement(780)(34)(780)(34)6 Proposed distribution of profit/loss2023
DKK'0002022
DKK'000Retained earnings(42,249)(8,276)(42,249)(8,276)5 Proposed distribution of profit and loss2023
DKK'0002022
DKK'000Retained earnings(42,249)(8,276)(42,249)(8,276)-42249000-8276000-42249000-82760007 Intangible assetsCompleted development projects
DKK'000Acquired intangible assets
DKK'000Goodwill
DKK'000Development projects in progress
DKK'000Cost beginning of year103,6876,526999,92110,353Transfers12,89500(12,895)Additions9,4880015,674Disposals(1,602)00(194)Cost end of year124,4686,526999,92112,938Amortisation and impairment losses beginning of year(54,602)(5,830)(170,820)0Impairment losses for the year(1,056)000Amortisation for the year(18,462)(386)(49,996)0Reversal regarding disposals1,431000Amortisation and impairment losses end of year(72,689)(6,216)(220,816)0Carrying amount end of year51,779310779,10512,938Completed development projects
DKK'000Acquired intangible assets
DKK'000Goodwill
DKK'000Development projects in progress
DKK'000Cost beginning of year103,6876,526999,92110,353Transfers12,89500(12,895)Additions9,4880015,674Disposals(1,602)00(194)Cost end of year124,4686,526999,92112,938Amortisation and impairment losses beginning of year(54,602)(5,830)(170,820)0Impairment losses for the year(1,056)000Amortisation for the year(18,462)(386)(49,996)0Reversal regarding disposals1,431000Amortisation and impairment losses end of year(72,689)(6,216)(220,816)0Carrying amount end of year51,779310779,10512,9388 Development projectsIn 2023, DKK 24,985 thousand has been capitalized allocated on 140 projects of which 116 have been launched and those projects are now subject to amortisation. The remaining projects are in preparation. The capitalization solely relates to salary allocated on projects. The projects are often completed within two years and thus amortisation of capitalised expenses on the projects is commenced shortly after the capitalization of the project. The projects are amortised over a period of three to five years. The Groups revenue supports that the development projects
have market potentials. The projects are in online slot machines, cash games and bingo. 9 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKK'000Leasehold improvements
DKK'000Cost beginning of year16,0052,889Additions1,89411Disposals(176)0Cost end of year17,7232,900Depreciation and impairment losses beginning of year(13,328)(2,384)Depreciation for the year(1,865)(338)Reversal regarding disposals510Depreciation and impairment losses end of year(15,142)(2,722)Carrying amount end of year2,58117810 Financial assetsDeposits
DKK'000Other receivables
DKK'000Cost beginning of year1,2321,647Transfers0(67)Cost end of year1,2321,580Carrying amount end of year1,2321,5806 Financial assetsInvestments in group enterprises
DKK'000Cost beginning of year500,000Additions52,500Cost end of year552,500Revaluations beginning of year53,206Share of profit/loss for the year(39,300)Revaluations end of year13,906Carrying amount end of year566,406A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.11 PrepaymentsPrepayments mainly consist of smaller costs relating to future periods.12 Contributed capitalNumberPar value
DKK'000Nominal
value
DKK'000A-Shares300,0001300B-Shares201,7341202501,73450213 Deferred tax
Changes during the year2023
DKK'0002022
DKK'000Beginning of year12,91711,064Recognised in the income statement9961,851Adjustment concerning previous years02End of year13,91312,91713 Deferred tax14 Other payablesNon-current other payables comprises holiday pay obligation of DKK 3,836k and loan arrangements of DKK 65,469k.7 Other payablesNon-current other payables comprise loan arrangements of DKK 65,469k.15 Non-current liabilities other than provisionsDue within 12
months
2023
DKK'000Due within 12
months
2022
DKK'000Due after
more than 12
months
2023
DKK'000Outstanding
after 5 years
2023
DKK'000Bank loans62,500100,000225,5060Other payables0069,3053,83662,500100,000294,8113,8368 Non-current liabilities other than provisionsDue after
more than 12
months
2023
DKK'000Other payables65,46965,469Of the non-current liabilities, DKK 0 is due after more than 5 years from the balance sheet date.16 Other payables2023
DKK'0002022
DKK'000VAT and duties3,0794,467Wages and salaries, personal income taxes, social security costs, etc. payable705399Holiday pay obligation4,0993,613Other costs payable14,32311,25922,20619,7389 Other payables2023
DKK'0002022
DKK'000VAT and duties320Other costs payable68961009617 Changes in working capital2023
DKK'0002022
DKK'000Increase/decrease in receivables(11,808)1,040Increase/decrease in trade payables etc.12,080(299)27274118 Unrecognised rental and lease commitments2023
DKK'0002022
DKK'000Total liabilities under rental or lease agreements until maturity 32,1001,60019 Contingent liabilitiesThe Group has entered into a warrant incentive program with senior executives and other employees that
includes the right of purchasing new B shares representing a nominal value of DKK 1 in the company. The
company has entered into 4 different warrant programs that are running in the period 2019 to 2028 and
comprise a total number of 9,168 warrants equaling a total nominal capital increase of DKK 9.2k.
The warrants are allotted on a monthly basis over a period of 48 to 60 months. The warrants are issued free of charge and the subscription price for the B-shares varies between 1,000 - 3,000 depending on the time of issuance. The allotment of warrants to the participants is conditional on the participant's employment within the group companies. The warrants are only exercisable in the event of an exit and unexercised warrants will be cancelled automatically without notice and without compensation to the participants.10 Contingent liabilitiesThe Group has entered into a warrant incentive program with senior executives and other employees that
includes the right of purchasing new B shares representing a nominal value of DKK 1 in the company. The
company has entered into 4 different warrant programs that are running in the period 2019 to 2028 and
comprise a total number of 9,168 warrants equaling a total nominal capital increase of DKK 9.2k.
The warrants are allotted on a monthly basis over a period of 48 to 60 months. The warrants are issued free of charge and the subscription price for the B-shares varies between 1,000 - 3,000 depending on the time of issuance. The allotment of warrants to the participants is conditional on the participant's employment within the group companies. The warrants are only exercisable in the event of an exit and unexercised warrants will be cancelled automatically without notice and without compensation to the participants.Joint taxation
The Entity serves as the administration company in a Danish joint taxation arrangement. According to the
joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc
for the jointly taxed entities, and for obligations, if any, relating to the withholding of tax on interest, royalties
and dividend for these entities.20 Assets charged and collateralThe shares in CEGO A/S and certain bank accounts have been pledged as collateral for the Company's bank
loans. The carrying amount of the shares in CEGO A/S amounts to DKK 846,284 thousand and the bank accounts
amounts to DKK 12 thousand. The loan balances amounts to DKK 288,006
thousand at the balance sheet date.11 Assets charged and collateralNone.
Collateral provided for group enterprises
The Entity has provided guarantee for the bank debt in Cego Midco ApS. Bank loans in Cego Midco ApS amount to DKK 288,006k.21 Transactions with related partiesOnly related party transactions not conducted on an arms’s length basis are disclosed in the annual report.
No such transactions have been conducted in the financial year.12 Transactions with related partiesOnly related party transactions not conducted on an arm’s length basis are disclosed in the annual report.
During the financial year, the company has provided tax-free group subsidy to its subsidiary
Cego Midco ApS of 52,500 tDKK.22 SubsidiariesRegistered inCorporate
formOwnership
%Spilnu.dk A/SAalborgA/S100.00Magnet Gaming ApSAalborgApS100.00CEGO A/SAalborgA/S100.00Lyckost ApSAalborgApS100.00CEGO Midco ApSAalborgApS100.00Happytiger ApSAalborgApS100.00Double ApSAalborgApS100.00Datoselskabet af 04.03.2021 ApSAalborgApS100.00CEGO Payco Ltd.United KingdomLtd100.00-39300000-81540005664060005532060002810002097000805000918300013906000532060002000520000-39300000393000000This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act
governing reporting class C enterprises (medium).The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.falseRecognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.
<br />Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.
Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements.
Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the takeover date, with net assets having been calculated at fair value.Profit or loss from divestment of enterprisesProfits or losses from divestment or winding-up of enterprises are calculated as the difference between selling
price or settlement price and the carrying amount of the net assets at the time of divestment and winding-up,
respectively.Gross profit or lossGross profit or loss comprises revenue, own work capitalised, other operating expenses, costs of sales and external expenses.RevenueRevenue from the sale of games is recognised in the income statement when delivery is made and risk has
passed to the buyer. Revenue is stated as GGR and comprises gross gaming revenue set off against winning and government
taxes.Own work capitalisedOwn work capitalised comprises staff costs and other costs incurred in the financial year and recognised in
cost for proprietary intangible assets.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities, including profit from the sale of intangible assets and property, plant and equipment, and salary refunds.Cost of salesCost of sales comprises expenses incurred to achieve revenue for the financial year; including fees, etc. to
payment service provider, annual gaming fee and expenses for white label takers and license fee.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes write downs of receivables recognised in current assets.Staff costsStaff costs comprise salaries and wages as well as social security contributions, pension contributions, etc
for entity staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year, and gains and
losses from the sale of intangible assets and property, plant and equipment.Other operating expensesOther operating expenses comprise expenses of a secondary nature as viewed in relation to the Entity’s
primary
activities, including loss from the sale of intangible assets and property, plant and equipment.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses.
Other financial incomeOther financial income comprises interest income, including interest income on receivables from group enterprises, payables and transactions in foreign currencies, amortisation of financial assets as well as tax relief
under the Danish Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, payables and transactions in foreign currencies, amortisation of financial liabilities as well as tax
surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the
portion attributable to entries directly in equity.The Parent is jointly taxed with all of its Danish group enterprises. The current Danish income tax is allocated
among
the jointly taxed entities proportionally to their taxable income (full allocation with a refund
concerning tax losses).GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience
gained by Management for each business area. The useful life has been set at 20 years.
Goodwill is written down to the lower of recoverable amount and carrying amount.<br />Intellectual property rights etc.Intellectual property rights etc comprise development projects completed and in progress with related intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Development projects on clearly defined and identifiable products and processes, for which the technical rate
of utilisation, adequate resources and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or apply the product or process in
question, are recognised as intangible assets. Other development costs are recognised as costs in the income
statement as incurred. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity under reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Completed development projects are amortised on a straight-line basis using their estimated useful lives
which are determined based on a specific assessment of each development project. For development projects
the amortisation periods used are 5 years. Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are
amortised
on a straight-line basis over their remaining duration, and licences are amortised on a straight-line basis over the term of the agreement.
Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentOther fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and
impairment losses.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the
asset until the time when it is ready to be put into operation.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line
depreciation is made on the basis of the following estimated useful lives of the assets:Useful life
Other fixtures and fittings, tools and equipment3-7 yearsLeasehold improvements3-7 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed
the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesIn the parent financial statements, investments in group enterprises are recognised and measured according
to the equity method. This means that investments are measured at the pro rata share of the enterprises'
equity value plus unamortised goodwill and plus or minus unrealised intra-group profits and losses.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises
are written down to net realisable value based on a specific assessment. If the Parent has a legal or constructive obligation to cover the liabilities of the relevant enterprise, and it is probable that such obligation
will involve a loss, a provision is recognised that is measured at present value of the costs necessary to settle
the obligations at the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to
Reserve for net revaluation according to the equity method under equity.
Goodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience
gained by Management for each business area. The amortisation periods used are 20 years.
Investments in group enterprises are written down to the lower of recoverable amount and carrying amount.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less write downs for bad and
doubtful debts.Joint taxation contributions payable or receivable Current joint taxation contributions payable or receivable are recognised in the
balance sheet, stated as tax computed on this year's taxable income, adjusted for
prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such losses are
expected to be used under the joint taxation arrangement.<br />Tax payable or receivable Current tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's
taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises cash in hand and bank deposits.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of
assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.
Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the
goods agreed or completion of the service agreed.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities as well as cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments as well as purchase, development, improvement and sale,
etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance
leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs as well as the raising of loans, instalments on interest-bearing debt, purchase of treasury
shares and payment of dividend.
Cash and cash equivalents comprise cash.The cash flow statement shows cash flows from operating, investing and financing activities as well as cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments as well as purchase, development, improvement and sale,
etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance
leases.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs as well as the raising of loans, instalments on interest-bearing debt, purchase of treasury
shares and payment of dividend.
Cash and cash equivalents comprise cash.2024-03-27Esben Serup Thomsen