Stockholm-listed Gaming Innovation Group (GiG) has detailed confidence in its future outlook and prospects as the company transitions to becoming a single-focus B2B technology incumbent.
This morning, GiG published its Q4 2019 results, recording corporate declines across all major operating metrics and citing a number of factors impacting both B2C and B2B performance.
Recording a 26% decline in Q4 2019 revenues to €29.4 million (Q42018: €40m), GiG outlined a significant decline in its B2C assets operating within Scandinavian markets, combined with the continued effects of a key B2B client termination reported during Q4 2018.
A weakened commercial pipeline saw GiG record a 22% in gross profits to €25 million (Q42018: €32m).
The trading period saw GiG implement significant costs reductions across its divisions, with the company reducing marketing expenses to €6.5 million (Q42018: €12m).
Furthermore, the trading quarter saw it oversee an ongoing ‘cost control’ programme across its divisions, reducing period operating expenses to €13.7 million (Q42018: €15.5m).
Delivering significant costs savings, GiG maintained group Q4 2019 EBITDA results at €4.8 million (Q42018: €5m).
Posting provisional full-year 2019 results, GiG governance anticipates a 18% decline in corporate revenues to €123 million (Q42018:€151m) combined with a 12% decrease in FY2019 EBITDA to €14 million (Q42018: €16m).
The Q4 update was a first for Richard Brown as GiG Group Chief Executive. “The dynamics in the online gambling industry, both competitive and regulatory, have changed dramatically in the last two years and we as a company are forcefully adapting to that,” he said.
“We are coming out of a strategic review initiated in November last year, I am certain the actions taken will place the Company in a truly exciting position for growth while securing the sustainability of the Company’s financial position by significantly reducing its debt and leverage.”