GiG reports 47% Q2 revenue rise as streamlining process continues
Malta-based supplier boosted by media services division switch to online casino as EBITDA jumps 93%
Gaming Innovation Group (GiG) has reported a 47% increase in revenue to €16.7m during its first quarter as a fully fledged B2B supplier.
EBITDA for Q2 2020 rose by 93% to €2.8m, up from €1.5m in the same period last year.
Revenue from GiG’s media services arm matched 2019 at €8.6m, although EBITDA for the division hit €4.8m driven by all-time high performance across paid media.
Media services also continued quarterly growth in both revenue and FTDs, up 5% and 22% respectively from Q1 2020.
GiG CEO Richard Brown
GiG CEO Richard Brown said: “GiG has improved its performance in the quarter across all of its business units, and I am very pleased to see our media division that has historically had a 20% revenue exposure to sports betting move quickly and with force to enhance casino offerings to deliver a second quarter with consecutive revenue and EBITDA growth despite the ban on sporting events.”
Platform services revenue nearly doubled at the Malta-based supplier to reach €8.2m, up from €4.2m in 2019 as the sale of its B2C assets to Betsson allowed for sole focus on B2B.
Elsewhere, EBITDA for sports betting services improved to €-0.9m (€-1.5) due to reduction in operating expenses by 44%.
GiG said further cost-saving initiatives were progressing according to plan as it expects to further reduce operating expenses by year end 2020. Headcount decreased from 709 to 487 year-on-year.
Positive performance continued after Q2 and into Q3 as July revenue on an adjusted basis was up 38% compared to same period last year.
GiG has agreed software as service-style deals with Grupo Slots in Argentina and LeGrand Casino in Macedonia during July as it helps long-standing retail operators transition online.
“The sales pipeline has developed positively in 2020, however Covid-19 has slowed some of the final contract negotiations as land-based operators have to come to terms with actions around lockdowns and related effects,” said GiG.
“Although some potential contract negotiations are delayed, GiG believes, that on a longer-term basis, this will accelerate the transition to online.”