Gaming Innovation Group has lauded “significant milestones accomplished” during Q4 and FY 2020, as the group strives to cement its place as “a leading B2B platform and media supplier in the igaming industry”.
The company decided to terminate the white-label model in 2020, with B2C operations divested on April 16, 2020, with the former said to reduce operational overheads, complexity, and remove risks from the business operations going forward.
Revenue during the quarter surged 66 per cent to €17.3m (2019: €10.4m), gross profit increased 60.2 per cent to €16.4m (2019: €10.2m), and EBITDA came in at €4.1m.
The group’s platform service segment reported revenue of €4.9m, a 19 per cent year-on-year increase from €4.2m but nine per cent quarterly decline, with positive EBITDA of €200,000 (2019: -€1.4m).
Despite the temporary negative impact on revenues from the white-label discontinuation and the impact of the new German casino regulations in the quarter, the group says that steps taken to improve the segment’s cost base and focus on more profitable partnerships resulted in a positive EBITDA for the first time since Q4 2018.
Four new agreements were signed for platform services in the fourth quarter, adding to a total of 14 in 2020, with four of those being casino and sportsbook and ten casino only
Media services continued its positive development in the fourth quarter of 2020, finishing off the year with an all-time high in revenues in December.
Revenue for the period came in at €9m, an increase of 20 per cent from 2019’s €7.5m, with EBITDA up eight per cent YoY and QoQ to €4.3m.
GiG’s sports betting services division completed restructuring during the quarter, resulting in a 78 per cent YoY reduction in operating expenses and ending with -€300,000 (2019: -€1.8m) EBITDA.
Richard Brown, CEO GiG, explained: “The fourth quarter also showed the work and strategic actions put in place in our sportsbook segment throughout 2020 bearing fruit.
“Operating expenses was down by 49 percent quarter-over-quarter and an additional two new contract signings were made. GiG sees a strong shareholder value in the long term outlook for sportsbook that is now achievable based on the operational efficiency programs that have been rolled out and the increasing demand for the product across the market.
“I am very excited to see the work put in throughout the teams and across the company to deliver such impressive full year results for the new look, B2B only GiG.
“The revenue and EBITDA growth is a testament to what has been built up through this year, and we are looking forward towards the continued improving results and growth as the actions through the second half of the year start to be delivered in 2021 and beyond.”
For the full year, revenue increased 42.8 per cent to €63m (2019: €44.1m), gross profit grew 28.2 per cent to €60.1m (2019: 43.1m), and EBITDA was €10.7m (2019: €3.4m), a 212 per cent increase.
Asserting confidence in its future pipeline and global expansion ambitions, GiG has highlighted a trifecta of key targets and sets its sights on further positive developments throughout the year.
These include delivering an annual double digit organic revenue growth, achieving an EBITDA margin in excess of 40 per cent by 2025, with cash generated from the business to be used to lower leverage ratio while continually pursuing growth opportunities in the burgeoning igaming sector.