GiG revenue rises 78% in Q3 as B2B restructuring progresses

Gaming Innovation Group (GiG) has reported a 78% annual revenue rise for Q3 2020 to €17.9m.

Adjusted revenue reached €14.2m, up from €10m in the prior corresponding period, having also risen 8% quarter-on-quarter.

Adjusted revenue from GiG’s core Platform services department grew by 51% to €5.4m, while Media department revenue rose by €600k annually to €8.6m.

Q3 EBITDA shot up by 850% to €3.2m following GiG’s pivot to B2B from B2C on an adjusted EBITDA margin of 22.5%.

A successful third quarter saw GiG strike supplier deals with six new partners, including Grupo Slots in Argentina, taking the year-to-date total to 16.

The Malta-based business also struck a partnership agreement with sports data provider Betgenius in the period to create a sportsbook and platform solution for operators in regulated markets.

GiG has also delivered on its decision to end white-label agreements having surrendered its Swedish and UK operating licences after the Q3 reporting period.

GiG CEO Richard Brown

GiG CEO Richard Brown said: “The third quarter of 2020 has delivered a significant step forward for GiG as a B2B-focused organisation.

“This growth in financial performance is complemented with strong success in the platform sales funnel which resulted in six additional long-term contracts signed in the quarter, securing future recurring revenue growth.

“The majority of the new contracts come from newly regulated markets. I am confident in the continued development in our sales pipeline which continues to develop stronger than ever and shows strength of long-term value driving contracts,” he added.

GiG’s cost-saving strategy continued to impact the business during Q3 with operational expenditure down 14% year-on-year, while still absorbing around €500K in one-off costs related to the restructuring.

Providing a longer-term outlook, GiG said new regulatory restrictions in Germany are anticipated to have a short-term negative impact on earnings.