Despite facing ‘toughened regulatory environments’, the governance of Gaming Innovation Group (GiG) details confidence in the firm’s overriding corporate strategy, pursuing ‘global geo expansion’ growth through ‘strong B2B partnerships’ coupled with ‘internal B2C’ brand launches within ‘selected markets’.
Publishing its first interim results as a Stockholm-listed enterprise, GiG records H1 2019 group revenues of €63 million, down 14% on corresponding H1 2018’s €74 million.
Mirroring industry-wide trends, GiG governance cites Swedish reregulated market adjustments and the loss of a B2B contract during Q4 2018 trading as the main contributing factors for the firm’s period revenue declines.
The Swedish adjustments combined with increased betting duties see GiG report a lower period operating margins across its B2C and B2B assets, as group H1 2019 gross profits decline to €50 million (H12018: €61 million).
Confronting H1 headwinds, GiG has undertaken a number of strategic initiatives mitigating period adjustments, with the company reducing period group marketing expenses to €17.5 million (H12018: €25m).
A higher emphasis on cost control has seen GiG governance limit corporate headcount to 700 employees, helping the Stockholm enterprise maintain a stable period EBITDA at €6.6 million (H12018: €6m).
Updating investors, GiG governance remains confident that H1 directives, will lead to sequential revenue growth and improved bottom-line performance during the second half of the year.
“With the second quarter behind us, the outlook has improved. I am confident that the recent strategic actions we have taken will lead to revenue growth and an improved bottom line in H2. It has been a quarter with some headwind, primarily due to a tougher Swedish market.
“Our global expansion will be driving sequential growth in both B2C and B2B in H2 and we will manage that growth with a strong focus on execution as the Company is heavily focused on improving earnings per share.” details GiG Chief Executive Robin Reed.