GiG considering further listing with SEK 425m bond issuing

Gaming Innovation Group (GiG) has confirmed that it is ‘contemplating’ a bond issue later this year, detailing that the matter will be discussed at a fixed income investor call on 27 May.

Depending on the decision of stakeholders in the spring, the gambling technology group may embark on a three-year senior secured floating bond issue of at least SEK 425 million (€40m), subject to inter alla market conditions. 

GiG has further detailed that the bond issue could see the company offer a conditional buyback of its outstanding bond under the ticker ‘GIGPLC02’, contingent upon subscription in the new bond, and which will be called in whole subject to the completion of the potential bond issue. 

Should GiG pursue the bond issue, it would represent the company’s second major public listing over the past 12 months, after the Finansinspektionen, Sweden’s Financial Supervisory Authority, allowed a previous trading on Stockholm Nasdaq last month. 

GiG had previously disclosed in May 2020 that it would pursue issuing a three-year SEK 450 million senior-secured bond placement with a maximum borrowing capacity of SEK 550 million (€55m).

The Finansinspektionen approval of its bond prospectus enabled GiG to list SEK 450 million (€45m) of senior corporate bonds on the Stockholm Nasdaq on 8 December, having filed an application for its former Frankfurt Börse debts to be transferred to the Stockholm Nasdaq prior to the listing. 

The planned continued investment comes off the back of a strong trading performance for GiG over the past year, with the group’s Q3 reports showing a 20% year-on-year revenue increase to €17 million (2020: €14.2m). Meanwhile, EBITDA grew by 67% tot €5.3 million (2020: €3.2m).

Of the group’s verticals, media services had the most successful quarter with revenue of €11.2m (€8.6m), an increase of 30% and EBITDA of €5.1m (€4m), having entered four new markets and maintained steady player intake levels in line with the second quarter.

Moving forward, the company underlined further investment in the US market, detailing plans to enact a ‘three-pronged approach to growth’ across website assets, new marketing entires and marketing channels. 

This approach centred on three objectives: delivering an annual double digit organic revenue growth profitability; achieving an EBITDA margin in excess of 40% by 2025 Leverage and 

Use cash generated from the business to lower leverage ratio while continually pursuing growth opportunities in the expanding igaming sector.

Notable investments in 2021 saw GiG acquire Sportnco for a total consideration of €50.8 million, of which €23.5 million will be paid in new shares in GiG and €27.3 million in cash, in order to strengthen its position as a platform and media provider to the betting industry.