Publishing its final trading statement as an Oslo Bors listed enterprise, Gaming Innovation Group (GiG) details that it has fulfilled on expectations set-out in its 2018 corporate guidance, despite facing a turbulent Q4 2018 closing period.
Updating investors, GiG informs that during Q4 2018 trading the company would move to write-down four of its ‘in-house brands’ restructuring its B2C division.
The asset write-downs combined with B2C restructuring costs would see GiG account for €13.7 million in impairment charges.
“Having now concentrated our customers and staff on fewer brands, we have decided to write-off the value of the domains on the brands we have de-prioritised leading to a non-cash impairment of €13.7m,” said GiG Group Chief Executive Robin Reed. “With that impairment done we can continue to further focus our B2C Gaming business.”
The B2C realignment would see GiG Q4 2018 corporate revenues stall at €40 million, as the online gambling group reported an EBITDA decline of 36% to €5 million (Q4 2017: €7.9m).
Despite the Q4 friction, GIG reports full-year 2018 corporate revenues of €151 million (FY 2017: €120m), alongside an EBITDA of €16 million (FY 2017: €12.5m).
The top-line metrics fulfil on GiG’s 2018 corporate guidance of €149-154m group revenue range, alongside an EBITDA target of €14-18m, as GiG governance closes 2018 accounts.
Moving forward, GiG details strong progress on its regulated market agenda, entering the re-regulated Swedish gambling marketplace this January, with the operator further securing pending B2C/B2B regulatory approval for entry into the Spanish online gambling market.
Furthermore, GiG fulfils the launch of its first US strategic partnership with Hard Rock International launching a full-service omni-channel sportsbook solution this January.
“We are now focused on improving and selling our products in B2B,” added Reed. “To accelerate these processes and scale, we are enhancing our technology. I see an enormous potential in accelerating the business with our target architecture which is why I have been leading our tech department over the last few months.
“This has been very exciting, I am very happy for the investments made and very confident in the future. Our key challenge will be to make compliance an edge by developing the best sustainability models for regulated markets.
“With our entry into New Jersey, Sweden and the UK, as well as our licence application into Spain, we have a great opportunity to overcome that challenge. I am looking forward to 2019.”
In addition to the trading update, Reed confirmed that the company will move to list its shares on the Stockholm Nasdaq in early March 2019.