Presenting its Q1 2017 interim results (period ending 31 March), Oslo-listed European online gambling operator Gaming Innovation Group (GIG) has detailed a strong start to 2017 despite significant costs attributed to group marketing initiatives.
Driven by the growth of its iGaming Cloud Platform, which currently services 28 external clients operating 41 active brands, GIG would report period revenues of €23 million, representing an increase of 7% over Q4 2016.
Detailing period performance, GIG governance would point to growth in its B2C and B2B divisions, which contributed €18.5 million and €6.3 million respectively.
However, the firm’s earnings results would be impacted by a significant increase in marketing spend to €11.1 million (48% of revenues), nearly doubling Q4 2016’s €7 million ad-spend.
As a result of the high marketing activity the oslo-listed operator would report a period EBITA of – 400,000, down from € 3.9 million earnings posted in Q4 2016.
During the period GIG governance completed the acquisition of casinotopsonline.com and a further DACH region network, executed through its SEK 400 million bond issuance gained in February 2017.
Robin Reed CEO of GIG commented on Q1 2017 opening performance
“Results for the first quarter of 2017 reflect our focus on building business volumes. We invested extensively in marketing, acquired the largest affiliate to date, signed 7 new brands and contracts to the iGaming Cloud (iGC) platform and continued to develop the next generation online casino.
Our vision is to make the iGaming industry an open and connected eco-system for the benefit of all. The recent development and acquisitions contributes to the realisation of this strategy”