You may have read about the full company Q3 results for Gaming Innovation Group (GiG) this week, but how about a closer look at GiG Media – the media arm of the business driving growth for igaming clients by generating leads through its digital marketing channels.
We got some more feedback from GiG Media’s Managing Director Jonas Warrer (pictured), as he reached his first full year in the role. Warrer joined GiG back in 2017 when Rebel Penguin, the company he was both CEO and founder of, was acquired by the Group.
First, let’s recap on the key numbers. GiG Media reported stable revenues in the third quarter 2020, up 7% year over year (YOY) and in line with the second quarter 2020 results.
Despite challenging market conditions (underpinned of course by COVID-19), paid media revenue saw continued improvements with an increase of 50% YOY and 10% quarter on quarter (Q/Q).
So, what was Warrer’s reaction to the Q3 performance?
“Q3 was a great quarter for GiG Media building on a successful first half foundation in 2020,” he said. “It has been a challenging year for all at GiG Media (as it has and continues to be for the wider, global market) and I’m proud to see how well the team have responded and overcome these difficult circumstances in order to continue to deliver. Our Q3 numbers are a testament to all the hard work put in.”
Expansion in the US markets
Would any quarterly sports betting or igaming based update be worth its salt without mention of the US market? Well, not for GiG, whose World Sports Network (WSN.com) was billed as one of the operational highlights on both the Q3 balance sheet and accompanying statement by CEO Richard Brown, who chose Warrer as his successor when he was appointed in his role.
Alongside the aforementioned revenue increases across paid media, WSN.com continued its US market growth, and was granted an affiliate licence for West Virginia. In fact, after the closure of Q3, GiG Media also received its licence to operate in Tennessee and is now present in nine US states (New Jersey, Indiana, Pennsylvania, West Virginia, Iowa, Colorado, Illinois, Nevada and Tennessee).
This enables expansion in the US, said Warrer, which reflects the ambition of GiG Media to become an “influential player within the US market”. He also pointed to GiG’s online casino guide Casino Tops Online (casinotopsonline.com), licensed in both New Jersey and Pennsylvania, as evidence of intent to execute a diverse market approach and leverage on media services.
Diversification is key
Speaking of diversification, it’s been a buzzword for the whole industry as it continues to look for the best way out of the coronavirus mire. But what positives can we take from this year?
“It’s been a very unusual year to say the least and I believe that the importance of having a lean and agile organisation has been further highlighted so far in 2020,” said Warrer. “Markets and market conditions can and will change quickly; this year we’ve seen sports events cancelled on a global scale, as well as major google updates, so you need to be able to act fast when it happens to counter any negative impact.”
So, while acknowledging the obvious case for renewed focus on the US market, and the numbers to justify such a move, GiG Media will not be putting all of its eggs in one basket.
“Experience has taught me that diversification is key, which is why one of the first things we did 12 months ago was to launch a strategy to further diversify the portfolio in terms of both channels and markets,” explained Warrer. “When you add it all together, it is pretty simple; we have enhanced our odds to win by spreading risk around, so a single market’s negative developments will have less impact on our bottom line.
“GiG Media will continue to work hard and expand our global footprint in order to diversify our already rich revenue base on a market level as well as capture new growth opportunities in both publishing and paid media.”
Concluding his Q3 reaction, Warrer said: “I’m excited to see new markets regulated as this provides the paid media segment significant growth opportunity and as more markets open up, we’re confident that this segment will continue to develop positively. I fully expect GiG Media to continue to improve and show robust performance through 2021.”