B2B online gaming solutions provider Gaming Innovation Group (GiG) has reported a 27.5% year-on-year revenue growth to a record €36.2 million ($39 million) in the first quarter of 2024. The group revenue was at €28.4 million ($30.6 million) in the first quarter last year.
Company chairman Petter Nylander said the group is hopeful of completing its proposed business split by Q3. In Q1 2023, the board of the company decided to initiate a strategic review to divide GiG into two main business segments: Media Services and Platform & Sportsbook.
The Media Services segment includes GiG’s lead generation business through online media buys and publishing, while the Platform & Sportsbook segment encompasses iGaming platforms, front-end development, and other managed services.
“Since 2019, our GiG Media business has been on an upward trajectory, marked by robust cash flow and increased earnings diversity. The acquisition of AskGamblers in February 2023 has proven fruitful, driving solid revenue growth and First Time Depositors (FTDs),” Nylander said.
The reported financials for Q1 2024 are of the undivided group. GiG Media posted all-time high revenues of €28 million ($30 million), up from €18.4 million ($19.8 million) in the same period of the previous year, marking an increase of 52% (21% organic), with an EBITDA of €13.5 million ($14.5 million).
Revenue at GiG Media experienced growth in all significant markets year-on-year. In the Americas, revenue surged by 82%, constituting 22% of GiG Media’s total revenue. Additionally, established legacy markets such as the Nordics and Europe also saw growth.
FTDs for GiG Media were 125,100, up 13% from 110.800 annually.
In contrast, Platform & Sportsbook revenue declined by 17% to €8.3 million ($8.4 million). The company attributes this decrease to the accounting treatment of the GiG Enterprise Solution under IFRS, with most of its value recorded in 2023. However, when excluding the GiG Enterprise Solution for comparison, Platform & Sportsbook revenue showed a 5% increase.
The company recently announced plans to distribute its Platform business to shareholders as part of the strategic split. Meanwhile, GiG Media will remain integrated within GiG’s operational framework, with GiG continuing as its listed holding entity.
“As we progress into the future, we remain steadfast in our commitment to creating sustainable long-term growth and value for our shareholders,” said Nylander. “Our strategic initiatives, including acquisitions, product innovation, and operational enhancements, are geared towards expanding our market reach and maximizing revenue opportunities.”
Original article: https://www.yogonet.com/international/noticias/2024/05/07/72058-gig-clocks-record-q1-revenue-of-39-million-targets-to-complete-business-split-by-q3
