Gaming Innovation Group has reflected on a second quarter that represents “another step forward” for the business, driven by a revenue high, as progress regarding a much detailed strategic review continues to push forward.
This was initiated in February and will split the company into a pair of independent publicly listed companies that comprise GiG Media and Platform & Sportsbook. The Innovation Labs subsidiary would be distributed to shareholders
This, it is hoped, will form “two industry leading businesses” that boast the potential to grow faster than in the current corporate structure.
Speaking in a CEO address in the company’s second quarter breakdown, Richard Brown updated: “Progress towards the strategic review has moved well and we believe operationally the group will be ready to execute the planned spin off by year end, targeting execution, dependant on market conditions, in the first half of 2024.”
Within GiG’s latest quarterly report, revenue is highlighted as “reaching another all-time high” after increasing 40 per cent year-on-year to close at €31.1m (2022: €22.1m).
“Continued growth outside traditional core markets is expected with Latin American and North America being key”
Breaking this figure down, GiG Media took the lion’s share with €21.7m, up 47 per cent from €14.8m YoY, which the group noted continued “the positive development seen over the past quarters”.
Of this figure, 64 per cent (2022: 58 per cent) derived from revenue share agreements, 10 per cent (2022: 16 per cent) from CPA and 26 per cent (2022: 26 per cent) from listing fees and other services.
Marketing expenses swelled to €6m (2022: €4.2m), as adjusted EBITDA pushed forward 46 per cent to €10.3m (2022: €7m). GiG Media also referred 109,400 (2022: 79,400) first dime depositors to operators.
Regarding the division’s future strategy, the company said: “GiG Media will continue to invest in expanding both geographically and through new assets and marketing channels to secure a diversified sustainable long-term revenue growth for both publishing and paid.
“Continued growth outside traditional core markets is expected with Latin American and North America being key growth markets”
Platform & Sportsbook witnessed a 27 per cent revenue uptick to €9.3m (2022: €7.3m), with AEBITDA surging ahead to close the quarter at €3.7m (2022: €1.3m).
Group-wide marketing expenses through the quarter rose 42 per cent to €6.2m (2022: €4.3m), corresponding to 20 per cent of revenue. Other operating expenses are reported as €10.7m, up 15 per cent YoY from €9.3m.
Furthermore, net loss swung from €200,000 one year earlier to income of €100,000 for the past quarter, with gross profit at €33.61m (2022: 14 99625.11m) and AEBITDA 68 percentage points ahead at €13.97m (2022: €8.3m).
“I truly believe there is a strong and clear path to continued success for the business units”
For the year-to-date, revenue, gross profit and AEBITDA are 36.13 per cent, 37.59 per cent, 71.14 per cent ahead at €67.47m (2022: €49.56m), €64.8m (2022: €47m), €25.66m (2022: €25.92m), respectively.
“While we are proud of these results, we can also see a great opportunity across the business units going forward as we continue to focus and optimise the operational performance while concurrently pursuing many areas of growth,” Brown continued.
“The teams across the company’s business units have worked tirelessly to deliver some marked operational performances”
GiG anticipates revenue to end the year between €125m-130m, with an adjusted EBITDA margin of 47 per cent to 50 per cent.
“We now look into the second half of the year with total focus on ensuring strong growth mechanics, continued operational improvement and long-term scalability for GiG,” the GiG CEO concluded.
“I truly believe there is a strong and clear path to continued success for the business units both operationally and strategically and we are fixated on achieving it.”
