GiG to split its media and B2B sportsbook arms following record Q4 2022 results
As part of a strategic review, the Malta-headquartered firm is looking at optimising growth opportunities by separating its two core businesses into independent companies
Gaming Innovation Group (GiG) is set to split into two independent publicly listed firms as the company looks to “optimise growth opportunities” for its media services and sportsbook arms.
GiG has immediately started a strategic review into the business which will continue throughout 2023 and initially focus on outlining the “strategic and operational objectives” needed to achieve the business split.
GiG noted the purpose of the divestment is to sharpen the focus of each of its business segments, optimise growth opportunities and ensure each of its businesses can benefit from flexibility in their business models.
GiG’s media services arm includes all of the firm’s lead generations business and publishing, while its platform and sportsbook division includes igaming platforms, frontend development and managed services for operators.
The move to split the company into two separate entities comes three years after GiG sold its B2C arm to Betsson following a strategic review initiated in November 2019.
It was also announced that the firm’s board intends to distribute its subsidiary Innovation Labs to shareholders as part of the review.
Richard Brown, CEO of GiG, said: “This is a very exciting time, both for the company and its employees but also for the shareholders of GiG. I strongly believe that a split has the potential to remove hurdles and unleash new possibilities for each business segment and that we can create two very successful companies.”
The confirmation of the review came off the back of a successful Q4 2022 for GiG, which saw both of its divisions post record results ahead of the potential split.
Overall, the Malta-headquartered posted revenue of €26m (£23.06m), an increase of 44% year on year (YoY), of which 35% was organic growth.
Breaking down the group’s revenue by section, GiG’s media arm returned €17.8m in revenue, rising 40% YoY, with a corresponding EBITDA of €8.9m.
Revenue from its platform and sportsbook division was also at an all-time high of €8.2m, an increase of 54% YoY and EBITDA of €1.8m.
Group adjusted EBITDA jumped 71% YoY to €10.8m with an accompanying EBITDA margin of 41.4%.
During the quarter, its media division signed a new commercial deal with News Corp UK & Ireland for sports betting and casino content for sites such as The Sun and talkSPORT. Additionally, the sportsbook and platform arm signed six new agreements in Q4.
Elsewhere, the group’s media arm returned an all-time high in player intake, with first-time depositors up 91% YoY to 115,900.
GiG’s share price was up 2.4% at the time of writing to SEK29.60.