Gaming Innovation Group posts 23% YoY revenue rise for Q2

Gaming Innovation Group (GiG) has announced a 23% year-on-year (YoY) revenue increase for Q2 2021. The B2B business recorded €16.2m (£13.8m) in revenue for Q2 2021 compared to €13.2m in Q2 2020. GiG’s media services affiliate arm delivered €11m of the total Q2 revenue while the group’s platform services branch represented €5.1m. The €11m figure was an all-time high for the affiliate segment, with its branch growing 28% YoY and 10% quarter-on-quarter. In terms of the group’s platform services division, GiG noted regulatory changes in Germany had had an impact on operations. GiG said: “The regulatory changes in Germany had an estimated negative effect on GiG’s revenues of €0.7m YoY. The downside in the German market is considered limited going forward and GiG expects the regulated market to be a good value driver over the mid to long term.” The remaining €0.1m in revenue was derived from GiG’s sports betting services arm. Elsewhere, GiG posted €5.3m in EBITDA in Q2 2021 rising from €2.8m in Q2 2020, while its net results, although not positive, grew from a €6m loss in Q2 2020 to a €0.5m in Q2 2021. GiG noted its long-term targets were to deliver annual double digit organic revenue growth and to achieve an EBITDA margin in excess of 40% by 2025. Richard Brown, GiG CEO, said the group had responded well to the impact of regulatory headwinds in Germany and the close of its white-label model in Q2. He said: “While the impact of regulation in Germany and the discontinuation of our white-label model negatively impacted Platform Services, this was compensated by growth of our focused SaaS business and platform services delivered 9% growth YoY in revenue and 126% YoY improvement in EBITDA. “This shows that the path we are on continues to deliver strong underlying results and one we can continue to push forward and focus on expansion to pave the way for managing growth within the platform business over the years to come,” he added.