Following four consecutive quarters of decline, a reformed Gaming Innovation Group (GiG) has welcomed a return to performance growth.
As part of its Q1 2020 trading update, the Stockholm-listed online gambling technology supplier explained that it is benefiting from a group transformation and cost savings programme implemented during 2019, as corporate revenues return to €31m (Q1 2019: €32m).
Operational highlights see GiG complete its short-term goal of returning media services to growth, recording Q1 revenues of €8.2m (Q1 2019: €9m) and an EBITDA of €4.5m (Q1 2019: €5m).
Deploying a number of cost-saving initiatives, GiG reduced its employee headcount to below 600 staff, which saw the company secure a 3% decrease in group operational expenditures totalling €12.9m.
Further strategic initiatives saw a restructured GiG sanction the sale of its entire B2C unit to Stockholm counterpart Betsson AB – a move designed to ‘reduce group complexities and improve efficiencies’.
The divestment has seen GiG become a fully focused technology and services provider. The firm’s B2B segment recorded Q1 revenues of €12.7m (Q1 2019: 14.2) and EBITDA of €1.3m (Q1 2019: €3.0m).
Highlighting group efficiencies, GiG pointed to stronger cash flows generated from operations and services during Q1 trading at €8m (Q1 2019: €4.5m).
Closing its Q1 2020 accounts, GiG maintained cost of sales and gaming taxes at €8.6m, as the company posts period EBITDA of €2.5m (Q1 2019: €4.5m).
Moving forward, GiG said it will continue to monitor COVID-19 developments. Working under constraints, GiG detailed that it will accelerate the development of its sportsbook platform as a key vertical for its continued recovery.
Updating investors, GiG CEO Richard Brown said “The first quarter of 2020 has been a transformational one for GiG. A first priority over the last quarters for the Company was to address the balance sheet.
“In Q1 we signed an SPA with Betsson Group enabling us to successfully divest the B2C division of the business, which completed in April, which not only paved the way for multiple strategic upsides but also allowed us to strengthen the balance sheet and reduce the Company’s debt position significantly.”
“GiG now has a fully focused, end to end B2B organisation, where we are confident we can continue to deliver a leading product offering and excel in the iGaming industry as a multifaceted B2B provider.”