GIG overcomes difficulties with its increasing revenue
Gaming Innovation Group (GIG) is confident in its commercial strategy and portfolio of activities, with revenue increasing due to collaborations and launches.
GiG recorded a 20% year-on-year sales gain to €17 million (2020: €14.2m) in its Q3 20mm n/21 trading results, while EBITDA was at €5.3 million, a 67 percent increase over the previous year (€3.2m).
Media services had the most profitable quarter of the group’s divisions, with a turnover of €11.2m (€8.6m), a 30 percent raise, and EBITDA of €5.1m (€4m), having entered four new territories and sustaining consistent user intake levels following the second quarter.
Media growth offset a flat trade quarter for GiG’s Platform Services, which maintained sales at €5.7 million, up 6% from €5.4 million the prior year. The firm explained that performance had suffered due to discontinuing white-label products and undergoing German market changes, which were reflected throughout the industry.
Within media, the company effectively exploited its publishing services, with the vertical earning a 32% increase in revenue from Q3 2020, while paid media income increased by 26%.
Moving forward, the company stated that post-Q3 media services initiatives would include “an enhanced investment in our efforts toward the US market,” which will be backed by a “three-pronged strategy to growth” spanning website assets, new marketing entry, and marketing channels.
Despite a number of seasonal hurdles, GiG’s Platform segment maintained its positive earnings trajectory, posting an EBITDA result of €600,000 (Q3 2020: – €0.1m).
The consistent profits were associated with two ‘long-term agreements’ to provide the solution to support an unmanned operator’s multi-brand strategy and EU expansion plans. In contrast, a third agreement will see the company utilize its platform to ‘support a client’s operations in certain designated markets.’
GiG created a new three-point view to highlight its good progress as an iGaming B2B tech and SaaS supplier.
- To achieve profitability via organic sales growth in the double digits yearly.
- Leverage to attain an EBITDA margin of more than 40% by 2025
- The cash generated by the firm will be utilized to reduce the leverage ratio while continuously seeking expansion prospects in the fast-expanding iGaming market.
Richard Brown, GiG’s CEO, concluded:
“During the quarter, the Company kept building toward its implementation strategy for sustainable long term expansion over the years ahead, leveraging its large collection of operations and preparing for expansion into new markets, product development, and operational effectiveness that will enable the Organisation to push towards further progress in the near future.”