Shares in Gaming Innovation Group (GiG) are trading higher today following the release of the supplier’s Q2 2022 financial results.
GiG saw revenue increase by 37.3% to an all-time high of €22.1m during the quarter, while adjusted EBITDA increased by 48.2% to €8.3m.
Exactly €14.8m of total revenue came from the GiG Media business segment, which includes its affiliate business, marking all-time high revenue for both its paid media and publishing divisions following year-on-year growth of 34.5%.The segment also saw 79,400 first time depositors (FTDs) during the quarter, an increase of 69.7% over the prior year period’s 46,800.
Platform and sportsbook revenue made up the remaining €7.3m revenue, up 43.1%. That was helped by the integration of platform provider Sportnco into the segment, following the completion of GiG’s €50m deal to acquire the business in April.
“The strong momentum that we carry forward in Q2 and the exciting milestone of completing the acquisition of Sportnco on 1 April, position our business for continued growth and escalating profitability levels,” said GiG CEO Richard Brown.
“The position of the combined GiG and Sportnco entity is truly exciting, and we are very pleased with the combination so far, and eagerly anticipate continuing to drive forward the integration and business towards their full value potential with great product and a truly global reach,” he added.
The business achieved a positive result from continuing operations of €2m, compared to a €0.2m loss in the prior year period. Losses from discontinued operations totalled €0.7m, leaving the business with a net result of €1.3m at the end of the quarter.
During Q2, GiG signed its first client agreement using the Sportnco brand with Angola-based operator Full Games SA.
GiG signed a total of seven new platform and sportsbook clients during the quarter, including an agreement with UK retail operator Aspers Group, and a further GiG/Sportnco combined deal with Crab Sports in Maryland, marking the acquired business’ first foray into the US market.
GiG also signed further agreements with existing partners for new market entries in Spain, Portugal and Colombia.Two GiG clients went live in the quarter with three additional brands being ready to launch pending the clients’ decision. The total number of brands live with GiG as of 30 June was 57, with an additional 10 brands in its integration pipeline.
Following the end of the quarter, GiG has already signed several new agreements including a platform provision deal with Betsson in Colombia and an extension with Grupo Boldt to enter two additional Latam markets via its Bplay brand.
The firm was also granted a supplier licence for Ontario, allowing it to partner with brands in Canada’s only regulated online gaming province.
Revenue in July was up 37% compared to the same period of last year, the firm said.GiG’s objectives for the future include achieving annual organic revenue growth of around 20%, reaching an adjusted EBITDA margin in excess of 50% during 2024 (37.5% in Q2 2022) and using cash generated from the business to lower its leverage ratio.
The business said that initiatives have been taken to reduce operating expenses for its platform operations, with the main effects to be realised towards the end of 2022 and into 2023. It expects that annualised savings will be around €8m when completed, including cost synergies from the integration of Sportnco.
GiG said for the full year 2022, it expects its combined operations to generate revenue between €87m and €93m, with EBITDA between €30m and €35m.