GiG reports all-time high Q1 revenue of €36.2m ahead of business split

Gaming Innovation Group (GiG) has reported revenue of €36.2m in Q1 2024, an all-time quarterly high for the business, with a 28% year-on-year (YoY) increase from €28.4 in Q1 2023.

Group adjusted EBITDA jumped 8% to €12.6m from €11.7m in the corresponding period last year as the firm’s affiliate arm once again came to the fore.

GiG Media reported record revenue of €28m for the period, a 52% YoY increase, with EBTIDA of €13.5m – a 69% YoY jump from €8m in Q1 2023.

Revenues from the Americas leapt 82% YoY and 41% quarter on quarter, with the region accounting for 22% of total GiG Media revenue during the reporting period.

First-time depositors (FTDs) were up 13% YoY from 110,800 to 125,100 but dropped from Q4 2023 , which the affiliate said “aligns with anticipated seasonal patterns”.

Since the acquisition of AskGamblers last February, the firm has recorded record traffic, players generated, revenue and EBITDA.

GiG also reported the onboarding of Time2play Media is going to plan, with growth in revenue and a healthy EBITDA margin.

However, revenue for GiG’s Platform & Sportsbook division decreased 17% YoY to €8.3m, down from €10m, with adjusted EBITDA of €0.9m down from €3.6m.

The business aid this was driven by “how GIG Enterprise Solution is accounted for under IFRS with the vast majority of the value being recorded in 2023”. Management noted that excluding this factor, the arm’s revenue increased 5% YoY.

Eight brands went live on GiG’s platform and sportsbook in Q1 2024, with a further two in Q2. This brings the total number of brands to 67 across 35 markets, with an additional 18 in pipeline.

Positive cash flow amounted to €10.3m, down from €13.2m in Q1 2023, while pre-tax profit dropped 12% from €4.2m to €3.7m.

Petter Nylander, GiG chair, provided an update to the upcoming split of GiG Media and its Platform & Sportsbook, as well as a fresh revenue expectation for April and the remainder of 2024 in his comments following the results publication.

Nylander said: “The momentum continues into Q2 2024, with April revenues expected to range between €9.8m-€10m, demonstrating a remarkable 39% year-over-year growth, of which 19% is organic.

“We are optimistic about the outlook for the remainder of 2024, reaffirming our revenue and EBITDA guidance to the market.

“In February 2023, the board initiated a strategic review with the intention to split the company into two separate entities: GiG Media and Platform & Sportsbook.

“This strategic move aims to optimise growth opportunities and ensure each business can leverage its distinctive models effectively. Planning is underway for the split, with a final execution expected in the third quarter of 2024, subject to necessary corporate actions, legal and shareholder approvals.

“As we progress into the future, we remain steadfast in our commitment to creating sustainable long-term growth and value for our shareholders.

“Our strategic initiatives, including acquisitions, product innovation, and operational enhancements, are geared towards expanding our market reach and maximizing revenue opportunities,” the chairman added.