Gaming Innovation Group Software has reported more than €7m in revenue for the third quarter of 2024, but an adjusted EBITDA loss of over €1m.
Both of these figures are down compared to the same period last year, with GiG also reporting an operating loss (EBIT) of just under €10m for the quarter.
Despite the results, CEO Richard Carter has voiced optimism for the igaming technology company’s future, expressing Q3 as a “momentous quarter” and that the firm is now “in a better position to expand” its presence in global igaming and sports betting markets.
Publishing its first set of financials since its business split away from Gentoo Media last month, GiG declared revenue of €7.4m, down 21% year-over-year (Q3 2023: €9.3m).
Providing further context on the comparison, the company stated that “2023 results contain €7.8m one-off revenue related to GiG Enterprise Solution sale (2024: €1.3m)”.
Excluding client exits and enterprise revenue, Q3’s underlying revenue stood at €7.3m, up 26% YoY (2023: €5.8m).
During the quarter, GiG also achieved listing on the Nasdaq First North Premier Growth Market in Stockholm, Sweden, under the ticker GIG SDB.
The company noted that the new listing will “enable management to reinvigorate GiG’s sales and marketing activities to help expand the group’s global client reach”.
Carter commented: “Q3 has been a momentous quarter for GiG, both in terms of underlying activity for the business and for our investor base by being able to realise our value on the First North stock exchange as a standalone Group.
“The quarter saw considerable activity across all areas of the business, including product development with the launch of our new sweepstakes product, SweepX, pipeline generation, customer signings and new brand and customer launches.”
GiG’s adjusted EBITDA in Q3 was a loss of €1.1m (2023: €3.1m profit) with a margin of minus 14.8% (2023: 32.9%).
The company’s EBIT came in at a loss of €9.7m (2023: €9.4m profit), with GiG adding that the figure excludes a “one-off extraordinary item of €50.8m relating to intangible asset write-downs”. 2023’s EBIT contained a “€10.4m reversal of contingent consideration for 2022 SportnCo acquisition”.
As of 30 September 2024, cash and cash equivalents stood at a balance of €10m.
GiG has also published its guidance for 2025, stating that it projects full-year revenue to be at least €44m, a 38% YoY growth. The company noted that at least 80% of its 2025 revenue is contracted, a figure which will rise to at least 90% by the end of the year.
As for EBITDA, GiG expects its figure to be at least €10m, implied EBITDA margin to be at 23% (negative EBITDA margins projected for 2024) and for cash flow to break even by Q3 2025.
“Looking ahead to Q4 and beyond, I am confident that GiG has never been in a better position to expand its presence across the global B2B igaming and sports betting markets,” added Carter.
“Underpinned by strong existing partnerships, alongside our cutting-edge proprietary technology that we have refined over a number of years, I am optimistic of an extremely bright and growth-filled future.”