GiG media division reports record December as Q4 revenue climbs 38%
Fourth quarter EBITDA increases by €4m year-on-year on pivot to B2B-only model
Gaming Innovation Group (GiG) has reported a 38% year-on-year increase in normalised Q4 2020 revenue to €14.2m.
EBITDA for the period reached €4.1m, up from €0.1m last year after a meteoric rise of 4,431%, on a normalised EBITDA margin of 29.2%.
GiG’s media services division revenue increased by 20% to €9m annually while core platform services revenue rose 19% to €4.9m. Sports betting revenue remained flat at €0.2m.
The media segment, which includes GiG’s affiliate business, was the strongest performer after recording all-time high revenue in December and a 36% Q4 uptick in NDCs. EBITDA hit €4.3m, while paid media represented 29% of total media division revenue in the quarter.
GiG signed four platform service deals in Q4, including with a large unnamed European media group. Platform EBITDA improved by 111% to €0.2m. The supplier also terminated its white-label model.
GiG’s platform is now certified in 10 regulated markets, with another seven soon to be added.
In the sports betting segment, operating expenses were reduced significantly in the quarter, down 49% from Q3.
The reduction is a result of initiatives taken throughout the financial year to reduce costs as the headcount was cut to 14 from 75.
This resulted in improved EBITDA of €-0.3m, up from €-1.8m last year.
Marketing expenses came in at €4.2m for Q4, up from €1.1m in Q4 2020 on overhead expenses relating to the supplier’s agreement with casino operator Sky City in New Zealand.
GiG CEO Richard Brown said: “I am very excited to see the work put in throughout the teams and across the company to deliver such impressive results for the new-look, B2B-only GiG.
“The revenue and EBITDA growth is a testament to what has been built up through this year, and we are looking forward towards the continued improving results and growth as the actions through the second half of the year start to be delivered in 2021 and beyond,” he added.
GiG’s share price dropped by more than 9% in early trading on the Oslo Stock Exchange.