Booming B2B business boosts GIG Q2 revenues
Oslo-listed firm posts triple-digit revenue growth, but sees B2C users decline sequentially
Gaming Innovation Group (GIG) has reported a 161% year-on-year rise in Q2 revenues to 9.7m on the strength of an expanding affiliates network and new clients for its B2B services.
Group EBITDA reached 960,000 in second quarter 2016, an improvement from the 70,000 loss posted in Q1.
“I am satisfied to see that we delivered both revenue and earnings growth in the second quarter,” Robin Reed, GIG CEO, said.
“The combination of an increasing number of FTD’s and deposits [from newly acquired affiliates networks] and clients operational on the iGC platform has contributed to a positive EBITDA for the quarter.”
GIG has three main business areas; a marketing and affiliates network known as Innovation Labs, a cloud-based services provider called iGamingCloud (iGC), and several B2C gaming sites including Rizk.com and Guts.com.
The number of active users on the B2C sites slipped slightly from 93,000 in Q1 to 81,600 in Q2 but the company said its total deposits increased.
Reed pointed out that GIG had focused on M&A activity in the first half of the year, adding BetIt Group â which is expected to be consolidated into GIG from 1 September â and odds compilation company OddsModel.
“We aim to create the leading Nordic iGaming company, and in order to reach this goal we need the best technology, partners and highly qualified employees,” Reed added.
The chief exec said the BetIt acquisition would “enhance our position in the UK”, a market that is providing BetIt with about 40% of its monthly new depositing customers.
For the full year, the company said it was pursuing a strategy of “profitable growth” and remained positive that it would exceed its 5m EBIT guidance, while full-year revenue is expected to exceed 100% growth.