Media growth helps GiG clear Q3 turbulence
GiG (Gaming Innovation Group) has maintained confidence in its commercial strategy and portfolio of operations, having experienced an uptake revenue amid a number of new partnerships and launches.
Updating stakeholders in its Q3 2021 trading results, GiG reported a 20% year-on-year revenue increase to €17 million (2020: €14.2m), whilst EBITDA stood at €5.3 million, a 67% increase on the previous year (€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 maintaining steady player intake levels in line with the second quarter.
Media growth offset a stagnant trading period for GiG’s Platform Services, which maintained revenues at €5.7 million, an increase of 6% on the €5.4 generated in the previous year. The unit detailed that performance had dragged as a result of discontinued white-label brands and undertaking German market adjustments, mirrored across the sector.
Within media, the firm was able to successfully leverage its publishing services in particular, with the vertical generating a 32% growth in revenue from Q3 2020, whilst paid media income rose by 26%.
Moving forward, the group detailed that post-Q3 media services developments will see ‘an increased investment in our efforts towards the US market’ supported by a ‘three-pronged approach to growth’ across website assets, new marketing entries and marketing channels.
Mitigating numerous period challenges, GiG’s Platform unit maintained its positive earnings momentum, delivering an EBITDA outcome of €600,000 (Q3 2020: – €0.1m)
The steady revenue was attributed to two ‘long-term agreements’ to supply the solution to support an unmanned operator’s multi-brand strategy and EU expansion plans, whilst a third deal will see the firm leverage its platform to ‘support a client’s operations in certain designated markets’.
Underscoring its positive momentum as an igaming B2B tech and SaaS provider, GiG established a new three-point outlook
- To deliver an annual double digit organic revenue growth profitability
- To achieve an EBITDA margin in excess of 40% by 2025 Leverage
- Cash generated from the business will be used to lower leverage ratio while continually pursuing growth opportunities in the rapidly growing iGaming sector..
Concluding the report, GiG CEO Richard Brown remarked: “During the quarter the Company continued to build towards its execution strategy for long term sustainable growth over the coming years, leveraging its diverse portfolio of operations and to prepare for expansion into new markets, development of products and operational performance that will enable the Company to push towards further success in the coming years.”