Good morning, and welcome to the Q2 2022 Earnings Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Robert Andersson, CEO. Please go ahead.
Okay. Thank you so much. Good morning, everyone, to our Q2 2022 presentation, where we have had continued strong growth, and we also secured our refinancing. If we move on. Well, first of all, my name's Robert Andersson. I've been the CEO of the company now for about two and a half years. With me I have Roderick Attard, who will be doing the financial details later in this call. First off, we start off with a summary of this quarter. If we look at revenue, it amounted to EUR 7.2 million. If we look at EBITDA, it's EUR 1.8 million, and NDCs was a solid EUR 35,000. As you can see, we have year-over-year performed nice growth and even quarter-over-quarter to some extent. We can move on.
If we look at the activities during the quarter. We released new financial targets, we secured the refinancing, and we have an acquisition in progress that we have announced, and I will now give you a little bit more flavor on this. With regards to the financial targets, we will deliver an EBITDA of EUR 8 million-EUR 10 million this year, and we will grow EBITDA organically with 20% annually during the years 2023-2025, at the same time as we are decreasing net interest-bearing debt to 2.5 or lower by December 2025. The new bond, this has or was the predominant work during the quarter for management.
As you are all aware, it was a challenging time in the world, and especially when it came to debt financing, there was pretty much a halt or a standstill in the bond market, which made this a longer process than we had hoped. However, we did manage to secure the funding and place the SEK 225 million in order to redeem the outstanding bond that we have, and now we have another bond running on three years. This gives us a solid momentum to developing Acroud with the focus on profitable organic growth and to take the company to a next level. I'm very pleased with the fact that we did land this in the middle of the turmoil that's going around in the world. It gives.
It's a sign of strength for this company for sure. If we go to the next slide. We did announce that we are working on an acquisition. This work is still ongoing, and I'm very hopeful that we will soon have this transaction closed. Due diligence has been taking a while, but everything is on track, and it's progressing well. The target itself is a company within affiliate and media. It's predominantly a European business focused in the sportsbook market, so it will be a nice addition to the mix of our revenue, and it's predominantly revenue share. I'm really looking forward to getting this over the line and bringing it in under the Acroud umbrella. As you can see, we have a nice progress with our revenue. The revenue development, as you can see, is solid.
It can always go a little bit faster, obviously, and hopefully we are churning up the pace here towards the end of the year in revenue growth as well. What's nice to see is that you can see that both the SaaS segment and iGaming affiliation segment is growing. We can continue. I'll just give you a little bit of a description of Acroud. Acroud, I would say, and also part of the meaning of the word Acroud, which, a group of people, although we have spelled it a little bit more interestingly, is that we have a group of different ways of working. It's a group of different companies. It's basically diversified, but still a group. We work with innovative SEO. We have advertisement networks.
We do PPC and media in-house, and we are working with media house partnerships, and we do have this based on our own software, which is predominantly Voonix. Moving on. This leads us to be able to create a lot of brands. In Sweden, for example, The Gambling Cabin is a very strong brand. Other than that, we have a lot of other casino brands, and in the SaaS segment we have Matching Visions and Voonix being the really predominant brands. Voonix being the B2B SaaS software provider, while Matching Visions I would say is a super affiliate network based on the Voonix software.
I would like to highlight during this quarter something that I'm very happy about and the progress we are making, which is PokerListings. So this one is a current success story, and in all fairness, this company has its root in this one product many, many years ago. This company was solely PokerListings pretty much during the poker heyday. But through the years, PokerListings went towards an evergreen content static site. But we have revamped that, started treating it much more like a sports site, if you will, providing interesting information, stories, coverage of events. There's podcasts, et cetera. We have seen a really nice uptake in this strategic change, and it just goes to show that content is king in this type of thing.
Poker and sports is really vital to be able to provide interesting content. But I'm really happy the direction this is because poker is not necessarily in this industry seen as a high-growth vertical, but we are seeing really strong growth in that just because we are reclaiming our position as number one here. A little bit of a market update. If you look at Acroud, nowadays U.K. is our biggest market. For us it's also Europe's biggest market. It's also Europe's most competitive market. It's quite hard to succeed in the U.K. because the competition is really high. What we are seeing, it's our fastest growing market, and we're outperforming our competitors in U.K., which again, is proof to our capabilities in a well-functioning market.
If we do go on and look at the Netherlands, this has sadly not yet turned into a highly functioning market thing. It's developing a lot slower than expected. I had much higher hopes for the Dutch market. I would say it's going to take a little bit more time, so I will be cautious because we need to have a lot more companies online, with their licenses for it to work well for an affiliate. It's coming. I just don't want to have, to give everybody hopes that it's gonna go as quick as I thought it was gonna be. Luckily, I would say that we have had so much success in other functioning markets that it has mitigated the fact that, the Dutch market hasn't developed as we saw.
We saw actually, if you look at it a year ago, we were sitting here believing that the Dutch market was gonna be our real source of explosive growth during 2022. It didn't turn out like that, but we still managed to deliver good growth during 2022 so far. I'm very happy. It's a sign that we work well in working markets. We can move on. Now over to you, Rod.
Thank you, Robert. Let's jump straight into the financial figures. Since January 2021, Acroud has been running two businesses in parallel. We have the iGaming affiliation business here represented by the green stacks and the SaaS business represented by the yellow stacks. This means that with this strategic move, Acroud has diversified its business, introducing new revenue streams. We're no longer dependent on just iGaming affiliation revenues, but we have introduced the SaaS revenues in our portfolio. We will be looking at the performance of each segment of each business in later in this presentation. Group revenues, as Robert said, have continued to increase now for the seventh quarter in a row, reaching EUR 7.2 million in Q2.
This represents an increase, a year-on-year increase of 16%. Out of the 16%, 15% represent pure organic growth, so we're excluding any effects coming from foreign exchange, acquisitions or divestments. More information about our organic growth calculation can be found in our interim report. Out of Q2 revenues, iGaming affiliation represented 44%, whereas the SaaS business contributed with 56%. Looking at NDCs, we see positive trend. NDC stands for New Depositing Customers, which represents the amount of new depositing players we have referred to our partners. We see a nice growth, reaching over 35,000 NDCs in Q2. This represent a 19% increase year-on-year in NDCs and 5% quarter-on-quarter. Such growth is mainly coming from the iGaming affiliation business, where we have seen NDCs growing year-on-year by 68%.
In previous slide, we have seen that revenue year-on-year has increased by EUR 1 million or 16%. In this slide, we're breaking this growth down by our different product, and we can see that the growth drivers coming mainly from three main products is the network product within the SaaS business, the subscription product within the SaaS business, and the poker product within the iGaming affiliation business. Casino revenues have decreased year-on-year, and that's a direct effect of the company's adjustment in the Dutch market. However, comparing this decrease with the decrease we have had in previous quarters. One can note that such decreases are decreasing or smoothening, and that's the effect of the organic growth we are seeing in other casino assets. For example, U.K., just like Robert mentioned there. Yeah. Moving on to the cost base.
Here we're comparing Q2 cost base versus Q1, and we can see that quarter-over-quarter, our cost base has increased, and we're disclosing here the main cost line items. Starting off with the network model payouts. This is a direct variable cost, meaning that will move up and down according to revenue, particularly within the Matching Visions brand, hence explaining the quarter-over-quarter increase. Other external costs have increased quarter-over-quarter, and that's coming from increased investment in growth initiatives. In quarter one, those were very limited. In Q2, we have invested more. Here what we're trying to do is strike the right balance between investment and future growth, but not hurting too much short-term profitability. Other net operating costs have increased quarter-over-quarter. That's coming from unfavorable movement in foreign exchange, so can be considered as one-off.
We moved from an FX gain in Q1 to an FX loss in Q2 due to the global situation we are all aware of. Having said that, we have taken the necessary measures to mitigate any FX risks. Such increase in costs have been partly set off by a decrease in personnel costs amounting to EUR 46,000. We will continue to focus on costs and cost controls in order to run operations with high margin. Which leads me to the next slide. Group EBITDA. In Q2, it amounted to EUR 1.8 million, representing a growth of 20% year-on-year. During Q2, our iGaming affiliation business operated at an EBITDA margin of 47%, whereas the SaaS business operated at an EBITDA margin of 14%, thus giving a blended group EBITDA margin rate of 25%.
During Q2, we didn't have any one-off income or one-off costs. In the next few slides, we're gonna focus just on the iGaming affiliation business, starting off with revenue. During Q2, affiliation revenue amount to just under EUR 3.2 million, representing a growth of 8% quarter-over-quarter and 8% year-over-year. This year-over-year growth is driven mainly by the Poker vertical, as we have seen in previous slide. We see that Casino historically has been on declining trend, but such and that declining trend is coming from the company's adjustment in the Dutch market, and such declining trend has, let's say, been stopped towards Q3, Q4 in 2021. In Q2, we can see that Casino is returning to growth. We see a sequential growth in Q2.
Sports betting quarter-on-quarter has decreased, and that's the direct result of seasonality in football and sports calendar in general. NDCs on the right-hand side showing positive trends. The amount of new depositing players referred to our partners amounted to just over 20,700. That's represents an all-time high figure for the iGaming affiliation throughout the company's history, and it augurs well for the for future revenues. The growth is coming mainly from the Casino vertical, but we also see year-on-year growth in sports betting. One point which I would like also to highlight when it comes to iGaming affiliation revenue is the drive to diversify our traffic sources and hence our revenue sources. Up until Q1 2021, our traffic sources and hence revenue sources were purely or 100% coming from SEO affiliate websites.
With the acquisition of The Gambling Cabin executed in Q2 2021, we have diversified our traffic sources and start doing affiliation through social media platforms. During Q2 2022, 85% of the iGaming affiliation revenues came from SEO, traditional affiliate websites, while the remaining 15% came from the social media platforms. With revenue diversification in mind, here we have more information about our revenue diversification within the iGaming affiliation business. We see that 41% of our revenue is coming from revenue share deals. Upsales and new marketing initiatives contributed to 27% of Q2 affiliation revenues. In terms of geo split, North America represented 15% of our revenues, whereas Europe continued at strong levels at 71%.
The good news about Europe is that many countries have now regulations in place granting more stable revenues and more stable growth in the future. Switching our focus to costs and the EBITDA, iGaming affiliation generated just under EUR 1.5 million during Q2 in terms of EBITDA, representing a growth of a marginal growth of 2% year-on-year and 1% quarter-on-quarter. This means that, from the 8% revenue growth we have seen previous slides, only part of it has trickled down to EBITDA. The reason for that is also reflected in the cost chart, and as we have covered earlier, is driven by increased investment in growth initiatives. However, as we said, we're trying to find the right balance between investing in future growth but not hurting too much short-term profitability.
We have also been hit by adverse effect from FX fluctuations, which we have now addressed and look forward not to have that again in the future. The iGaming affiliation, as we said, operated at an EBITDA margin of 47% during Q2. This compares to 43% in Q2 last year and 50% Q1 this year. Now we're gonna focus just on the second business, the SaaS. We see that revenue during Q2 amounted to just over EUR 4 million. It's approximately in line with Q1 and represent a growth of 24% year-on-year. Such growth is driven by both products, the subscription product growing by 57% year-on-year, and the network product growing by 21% year-on-year. On the right-hand side, we see the NDC's development.
NDCs are delivered to our partners from the SaaS business via the network model only. During Q2, it amounted just over 4,400 NDCs, representing a drop of 16% year-over-year and 3% quarter-over-quarter. Although we see that such decline did not have an effect on revenue, we're working towards reversing this trend. Moving on to EBITDA. During Q2, SaaS generated an EBITDA of EUR 540,000, thus maintaining EBITDA at high levels. This represents an increase of 88% year-over-year and 6% quarter-over-quarter, which of course is nice to see. The growth in EBITDA is driven by both products, particularly from revenue, while cost base remaining at constant levels. Revenue generating units or RGUs represents the number of clients serviced by this business line.
It continues to grow quarter -on -quarter, reaching 422 clients during Q2. This augurs well for future revenues. It also means that we have high retention rate in this business. With that, we close the income statement chapter, and we focus now on financing and cash flow. On the left-hand side, we see that our gross debt continues to decrease quarter -on -quarter, reaching EUR 18.3 million by the end of Q2. Our net debt to EBITDA ratio also decreasing to 2.9 by the end of Q2. We operate a business with high EBITDA margins and high cash conversion, thus allowing us to continue decreasing our debt. As Robert mentioned, in July the old bond, which was due to mature in September, was redeemed early and was paid in full during July.
Now from July onwards, we're under the new financing, under the new bond. Moving to the last finance slide, where we see the cash flow development. We see that cash flow from operating activities amounted to just under EUR 1.5 million. Cash conversion decreased to 74%, which is lower than Q1 and lower than our targets. It's driven by temporarily negative working capital, which we're working to address now already in Q3. Cash flow from investing activities comprise mainly the continued investments in our products. Cash flow from financing activities, let's say, can be grouped into two. There's the cash outflow coming from the bond payments, mainly the quarterly amortization and quarterly interest payments.
We have advanced a loan to a third party, the settlement of which will either happen via the part settlement of the acquisition we have announced in June and which Robert referred to, or if the transaction is canceled, it will repay back within a maximum of 30 days. With that, we close the finance section, and I hand over back the words to Robert.
All right. With all of this said, I'm happy with Q2, but you can always be happier. I'm really looking forward to Q3 and Q4 this year. I feel very confident about our financial targets going forward. With that, I will now open up for questions.
We will now begin the question -and -answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster. Once again, to ask a question, please press star then one. Gentlemen, there are no questions at this time.
Okay. With that, thank you so much, and I look forward to presenting and seeing you at our Q3 presentation.