Gaming Innovation Group (GiG) has stated that it has delivered on ‘several strategic directives’ as the firm sets out on its new ambition to become the industry’s ‘leading global tier-1 B2B supplier’.
Publishing its Q2 2020 trading statement, GiG pointed to ‘continued quarterly growth’, recording a 47% increase in group revenues to €16.7 million (Q2 2019 -€11.3m).
Following the divestment of its entire B2C portfolio to Betsson AB during Q1 trading, GiG now operates on a simplified B2B framework, consisting of three core business verticals – ‘Platform’, ‘Sports Betting’ and ‘Media’ services.
Maintaining the firm’s growth momentum, GiG highlighted the sustained performance of its Media services division which delivered €8.6 million in revenues which was in line with Q2 2019 performance.
GiG underlined that its ‘Paid Media’ assets were able to deliver a 27% increase in first-time-depositing (FTD) customers to clients despite contending with COVID-19 headwinds and Google updating its search algorithms in May.
Meanwhile, GiG’s restructured Platform unit saw revenues jump to €8.2 million (Q2 2019: €4.2m), buoyed by the firm’s new operating structure and its successful partnership with Sky City New Zealand.
GiG underlined strong commercial prospects for its platform division, which secured a further four new B2B partner agreements during the trading period.
The Stockholm-listed technology supplier is continuing to restructure its new B2B sports betting unit, which recorded revenues of €100,000 (Q2 2019: €300k) as performance was impacted by the closure of global sporting events.
With the unit in the early stages of its development, GiG stated that resources have been focused on the integration of third-party suppliers, in which GiG maintains its product vision of delivering a ‘sportsbook agnostic platform’.
The trading period saw GiG continue to deliver on its group cost controls and saving initiatives as a refocused B2B business.
Despite this, GiG reported a 4% increase in Q2 2020 operating expenses to €8.5 million (Q2 2019: €8.2m) primarily attributed to restructuring costs. GiG highlighted that it has secured key savings including a reduction in corporate headcount and tech resources – initiatives that will deliver company EBITDA savings during H2 trading.
Closing its Q2 2020 trading accounts, GiG declared a group EBITDA of €2.8 million, up 93% on corresponding Q1 2019’s €1.5 million.
Of further note, GiG governance underlined to investors that the group’s future EBITDA performance will be further improved by the early repayment of the firm’s SEK 300m (€27m) bond to Swedish debt-holders, sanctioned as part of the firm’s divestment of B2C assets.
GiG CEO Richard Brown commented on performance: “I am pleased with the development of the business over the second quarter, with the execution of several strategic initiatives completed and executed upon that will place the Company in a fundamentally strong position to capture future growth.
“Q2 was a strong start for GiG as its first quarter as a B2B only company, and the signings after the quarter confirm further my confidence that the Company can continue to grow and flourish as its well position strategically in addition to having a first rate product offering across its portfolio which will deliver shareholder value in the years to come.”