Gaming Innovation Group is expecting to achieve the final execution on a long mooted business split during the first half of 2024, which it is anticipated will fully optimise growth opportunities.
In February, the Malta headquartered group announced an intention to split itself into two separate companies, namely GiG Platform & Sportsbook and GiG Media.
This is designed to form “two industry leading businesses with the potential to grow faster than in the current corporate structure”.
Its purpose, GiG noted, is to optimise growth opportunities and ensure each business can benefit from the strategic and financial flexibility of their distinctive business models.
Work is reportedly proceeding according to plan, it was suggested in the group’s latest financial update, with H1 2024’s finalisation subject to all necessary corporate actions, including shareholder approval.
This update came as GiG reported yet another all-time high revenue performance, which was delivered courtesy of a 39 per cent increase to €31.9m (2022: €22.9m).
However, the company has reported impacts from seasonality effects due to summer vacation and lack of larger sport events through the quarter, with a €900,000 hit felt through September due to unfavourable sports results.
Marketing expenses swelled 48 per cent year-on-year to €6.9m (2022: €4.6m), which is primarily aligned to the GiG Media division, with adjusted EBITDA up 61 per cent to €23.4m (2020: €8.5m).
In addition to praising GiG’s “resilience and commitment to excellence”, Petter Nylander, Chair of the Board, noted that Q3 “has proven to be another period of growth and achievement”.
Breaking down the above revenue figure, GiG Media, bolstered by the purchase of Time2Play Media, saw an all-time high figure of €22.5m reached, representing a 49 per cent uptick from €15.1m. Published and paid revenues increased 70 per cent and 23 per cent, respectively.
Adjusted EBITDA increased 53 per cent to €10.4m (2022: €6.8m), “despite no large sport events and seasonality effects in the quarter”. First time depositors climbed 31 per cent to 113.800 (2022: 86.900).
Platform & Sportsbook saw revenue and AEBITDA increase 20 per cent and 90 per cent to €9.3m (2022: €7.8m and €3.2m (2022: €1.7m), with operating expenses down 29 per cent.
“As we reflect on the strong results of Q3 2023, we are enthusiastic about the future. Our ambition to become and create world leaders in both Media and Platform & Sportsbook segments we believe is well within reach,” Nylander noted.
“The dedication and hard work of our team, combined with the strength of our strategy, have positioned GiG for an exciting journey ahead.”
As a result of the “good progress” towards operational and financial targets, GiG is expecting full-year revenue of €125m-€130m, with an AEBITDA margin of between 47 per cent and 50 per cent.
“The company remains confident and committed to its long-term financial targets for the group which are as follows,” GiG noted.
