GiG announces record high revenue in year’s first quarter
Online gambling, sports betting, and B2B solutions provider Gaming Innovation Group (GiG) recorded a massive 49 percent year-on-year spike in this year’s first-quarter revenue. The revenue soared from €19.1 million in the corresponding quarter last year to a record-high €28.4 million in Q1 2023. The Malta-based operator also signed eight new agreements during the first quarter, of which three were in Europe and four on the American continent. Strong revenue numbers are expected throughout the year as the monthly revenue of April has also rocketed high.
Malta based online gambling, sports betting, and B2B solutions provider Gaming Innovation Group (GiG) recorded a massive 49 percent year-on-year spike in this year’s first-quarter revenue.
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With a promising vision to be amongst the leading iGaming platform and media service solutions providers, GiG intends to expand its operations around the world by providing innovative and scalable solutions for its clients that can drive sustainable growth for both provider and receiver. The Malta-based operator provides its clients with a top-notch platform that helps both iGaming as well as land-based gambling segments. Licensed by the Malta Gaming Authority (MGA) and the United Kingdom Gambling Commission (UKGC), GiG’s platform (PAM) is offered to all its clients under a Casino Services Industry Enterprise (CSIE) license. PAM is certified in several European countries like Croatia, Latvia, Spain, and Sweden because it complies with internationally recognized platform and security standards. In February 2021, GiG upgraded PAM after acquiring two licenses for management and hosting facilities and for the production and distribution of the software. The Malta-based operator aims for sustainable growth and only delivers its products and services in regulated gambling markets.
PAM is only one of the many sources of revenue for GiG. Another revenue pipeline comes via the company’s sportsbook solution. Towards the end of the first quarter of last year, GiG completed the full acquisition of one of France’s leading sportsbook solution providers – Sportnco. The entity was acquired for a little over €51 million. Sportnco also had a strong base in Belgium, Greece, and Portugal, boosting GiG’s expansion across Europe. When the deal was struck, both companies were licensed to provide their solutions in 25 regulated jurisdictions with an existing client portfolio comprising 55 names. Earlier this year, GiG secured the complete acquisition of renowned iGaming operator and information provider AskGamblers. Under new ownership, the operator continues its mission to bridge the gap between the players and the iGaming segment by enlightening the masses with reliable information. AskGamblers has been working on this task since it was established in 2006. With time, the operator has grown and now offers services in multiple languages, including German, Italian, Portuguese, and more.
At the end of the first quarter this year, there were 60 fully operational brands under GiG. While the European expansion is expected to continue, the growth of the Malta-based operator in the United States is also in full swing. Both segments – The platform and the sportsbook – were awarded licenses in Maryland and Pennsylvania. The entity also launched an Enterprise Solution and tied down a client for that service. Apart from Europe and the United States, GiG noted positive developments in the United Kingdom and Ireland. GiG’s existing commercial partnership with News Corp UK & Ireland Limited was expanded in the first quarter. This expansion enabled GiG to enter the Irish gambling market with casino and sports betting offerings. The growth in Latin America was also noteworthy, as half of the eight new platform and sportsbook agreements signed in the first quarter were in South American jurisdictions. As the second quarter commences, several operational and other activities are queued up for GiG, and the officials of the Malta-based operator are expecting steady growth for the rest of the year.
The CEO of GiG, Richard Brown, summarized his company’s positive performance in the first quarter of the new year.
“The first quarter of 2023 had a multitude of successful and impressive steps forward for Gaming Innovation Group. Many of which are contributing to create excitement within the business of further potential of the companies within the group.”
Detailed analysis of the first quarter of 2023
After an extremely positive final quarter last year, GiG’s revenue continued to grow and touched new heights. The 2022 FIFA World Cup in Qatar increased traffic and drove the revenue from €18.1 million to €26 million in Q4 2022. Usually, the first quarter revenue is lower than the revenue in the preceding quarter. However, the quarterly revenue in Q1 2023 recorded a 9.2 percent quarter-on-quarter (QoQ) increase and soared to €28.4 million. In the corresponding quarter last year, the revenue was 49 percent lower at €19.1 million.
Both segments of GiG contributed to the steady growth. Revenue from the Media branch showed a 31 percent year-on-year (YoY) increase as it rose from €14.1 million to 18.4 million. This was also 3.4 percent higher than the revenue of the preceding quarter collected by the same division, which was €17.8 million. The biggest spike came in the platform and sportsbook segment as revenue increased by 100 percent YoY from €5 million to €10 million. It also confirmed a 23 percent QoQ increase from €8.2 million in Q4 2022.
The adjusted EBITDA was up 75 percent YoY from €6.7 million to €11.7 million. In the preceding quarter, the adjusted EBITDA was €10.8 million, while the adjusted margin for it was 41.4 percent. In Q1 2023, the adjusted margin decreased a little to 41.1 percent, but it was still higher than the margin of 35.1 percent, which was recorded in the first quarter of last year. In the first quarter this year, EBIT was up 94 percent YoY from €2.9 million to €5.6 million, with a margin of 19.7 percent, rising by 4.6 percent compared to the corresponding quarter of last year.
GiG entered the Swiss gambling market earlier this year
In the first quarterly analysis report published by GiG, the entity confirmed that eight new agreements were signed during the first quarter. One of them may have been the undisclosed one that allowed GiG to enter the regulated gambling market of Switzerland. The Maltese operator’s arrival in Swiss markets was confirmed just days after the complete acquisition of AskGamblers.
Along with AskGamblers, GiG also secured casino affiliate domains from Catena Media, including newscasino.com, johnslots.com, and more. After this, a five-year deal was struck with the unnamed casino operator. GiG confirmed that the signed deal will go live in the first quarter of next year. The unnamed operator holds the Swiss Gambling Authority’s (GESPA) gambling license, adding another European jurisdiction to GiG’s portfolio.
