Of this total, Platform Services brought in €5.7m in revenue, up 5.6% on Q3 2020, and 11.8% ahead of Q2 2021. Media Services brought in a further €11.2m, up 30.2% year-on-year, and 1.8% ahead of Q2 2021. The remaining revenue was brought in by the business’ Sports Betting Services.
Platform Services overview
GiG said it had completed development for three new brands in Q3, one of which is now live while the others are ready pending the client’s decision to launch or final regulatory approval.
Having discontinued its white-label model, the last client on a standard white-label agreement was terminated during Q3. One client remains on a semi white-label agreement pending final regulation of its core market, GiG said.
Existing customers using GiG’s Platform Services as of the end of Q3 come to a total of 22, with an additional 3 that are development complete.
GiG’s platform is currently live in 14 certified jurisdictions, with 7 further locations in the current integration pipeline, and the business is in the process of mapping work for additional new market entries, it said.
“The team continues to progress the number of new markets the platform products are certified in, building towards an ever-increasing total addressable market and therefore sales and revenue growth potential,” said Richard Brown, GiG’s chief executive.
“We are fully committed to driving market certifications, performance and scale of our platform business and see more and more opportunities opening up across the world as more markets move into regulated environments.”
Media Services in-depth
Media Services generated €11.2m in revenue, up 30.2% year-on-year, and 1.8% ahead of Q2 2021.
Of this, €8.3m came from publishing revenue while the remaining €2.9m came from paid revenue.
Paid revenues were down 9.4% on the previous quarter, which GiG said was a result of the seasonal effect of fewer available sporting events.
However, Media Services referred 46,700 new first-time depositors (FTDs) to operators in Q3, up 53.1% year-on-year but down slightly on Q2 2021, when the business referred 46,800 FTDs.
Media Services continues to invest into US markets, where it now holds a total of 10 licences, and is present and qualified to carry out business in 17 states.The business will continue to expand its global footprint in order to diversify and drive sustainable long-term revenue growth outside core markets, GiG said, and has started positively in Q4 with player intake in October up 85% compared to the same period in 2020.
US traffic to its wsn.com affiliate site has grown 30% since Q2, and was 55% ahead of Q3 2020 this year.
With regards to GiG’s Media Services, Richard Brown said: “The Media business continues to work on a large and diverse range of quality website asset/products, new market entries and marketing channels and this three-pronged approach to growth we believe will continue to pay off in the long term, including an increased investment in our efforts towards the US market.”
Other services – GiG Comply & Sports Betting
GiG’s proprietary compliance tool, GiG Comply, also signed two new clients during the quarter.
GiG’s sports betting services had five clients live during the quarter, with one more in the integration pipeline. With combined turnover of €12.2m during the quarter, down 46.0% on Q3 2020, revenues totalled just €100,000.
GiG said the decreased turnover was a result of lower sports activity compared to last year, and the result of the regulation of the German market.
It said, however, that Sports Betting Services are in a sustainable position for growth and strategic partnerships, with the ambition to gradually grow with existing and new long-term partners.
Costs and results
After operating expenses of €8.8m, down 5.4% compared to last year, and marketing expenses of €2.8m, up 75.0%, the business was left with EBITDA of €5.3m, at a margin of 31.3%.
After expenses related to depreciation and amortisation of around €3.5m, GiG’s EBIT figure for the quarter was €1.8m.
This brings its total net income for the first nine months of 2021 to €1.6m, from €48.6m in total revenues and €15.2m in EBITDA.
