GiG returns to profits as Sportnco revamps commercial pipeline
Gaming Innovation Group (GiG) rides with confidence as its business is refreshed by the successful integration of the Sportnco platform, supporting the continued record-breaking growth of its Media network.
Publishing its 2022 interim trading statement, the group declared all-time-high Q2 corporate revenues of €22m, up 37% on corresponding 2021’s €16.1m.
Headline growth was attributed to the GiG Media network recording its sixth successive all-time-high revenue results of €14.8m (Q2 2021: €11m), reflecting a period of activity that generated first-time-depositors (FTDs) of 79,400 (Q2 2021:49,000).
Continuing its record-breaking momentum, GiG Media generated an adjusted EBITDA of €7m, up 32% on 2021’s results of €5.3m, as its media network surpassed ”weaker seasonality effects in the quarter as the sporting calendar slows down”.
Completed on 1 April, the integration of the Sportnco technology platform saw GiG sign seven new clients in the second quarter of 2022, including tier-1 contract with Betway Portugal and UK casino operator Aspers Group.
A refreshed Platform & Sportsbook unit achieved a 43% increase in revenues to €7.3m (Q2 2021: €5.0). GiG confirmed that the Sportnco integration was instantly earnings effective as unit EBITDA jumped to €1.3m (Q2 2021: €300,000).
As of Q2 trading, GiG’s platform unit currently supports a total of 57 live brands, with an additional 10 new customers in the group’s ‘integration pipeline’.
The continued growth of GiG’s Media network, combined with improved platform results, saw Q2 adjusted EBITDA stand at €8.3m (Q2 2021: €5.6m).
CEO Richard Brown commented: “The strong momentum that we carry forward in Q2 and the exciting milestone of completing the acquisition of Sportnco on April 1st, position our business for continued growth and escalating profitability levels.
“While we believe there is still so much more to come from this business over the coming years, the second quarter indicates that we continue to track towards our short and longer term financial and strategic objective.”
A breakdown of Q2 expenditure saw GiG account for total operating costs of €16.8m, reflecting higher marketing expenses of €7.5m and group operating expenses of €9.2m.
Improved bottom-line results saw GiG declare a positive net profit of €1.3m, reversing 2021 comparative losses of €500,000 – a result that reflects a positive cash flow from operations of €9.5m.
Year-to-date, GiG tracks consolidated revenues of €41m (YTD2021: €31) alongside adjusted EBITDA of €14.9m (YTD2021: €10.6m).
Moving into H2 trading, the group maintains confidence in achieving its full-year forecast of declaring revenues of €87-93m with an EBITDA range of €30- 35m.
Brown signed off: “The position of the combined GiG and Sportnco entity is truly exciting, and we are very pleased with the combination so far, and eagerly anticipate continuing to drive forward the integration and business towards their full value potential with great product and a truly global reach.
“We have an exciting and delivery-packed second half across the group ahead of us that we are attacking with force and vigour. We remain confident in our long-term ambitions and to take GiG on a continued path of growth and increasing profitability as we begin to realise synergies and further operational efficiency which are reflected in our uplift of long-term financial targets.”