Gaming Innovation Group Inc. (GiG) has released its impressive first-quarter results for the year, showcasing a significant increase in revenue, reaching a historic high of €36.2 million. This figure stands notably higher than the €28.4 million reported in the previous year, demonstrating robust financial health for the company. The reported revenue includes earnings from both the Platform & Sportsbook division and the GiG Media business, in anticipation of the intended separation of these segments.
GiG previously disclosed its intention to split into two distinct entities. Although the separation has not yet occurred, the company devoted much of the past year to laying the groundwork for this strategic initiative. As a result, the Q1 report presents a holistic view of the business, thus facilitating a year-on-year comparison of performance.
Analysing the Q1 statistics, it’s evident that GiG Media has experienced substantial growth, while the Platform & Sportsbook division saw a dip in its revenue. GiG Media’s success was so pronounced during the quarter that it spearheaded overall revenue to an unprecedented peak.
“Our GiG Media business has been on a consistent upward trajectory since 2019, exhibiting solid cash flow and a diversifying earning profile,” stated GiG’s CEO, Richard Brown. “The acquisition of AskGamblers in February 2023 has been particularly rewarding, leading to a notable increase in revenue growth and First Time Depositors (FTDs). Furthermore, the successful integration of KaFe Rocks in December last year has broadened our business portfolio and had a positive effect on our EBITDA margin.”
The planned split has been a topic of considerable discussion since its announcement in February of the previous year. Within the GiG umbrella, GiG Media is focused on media offerings, including affiliate lead generation services, whereas Platform & Sportsbook encompasses technical igaming platforms like Sportnco, which was acquired in April 2022, and includes front-end development and other managed services.
GiG revealed last month plans to distribute its Platform business among shareholders, a significant move related to the planned split. Post-separation, GiG Media will maintain operations under GiG’s overarching corporate structure, with GiG continuing as its publicly-listed holding company.
Brown cites the third quarter of 2024 as an anticipated timeline for the finalization of the business division. This timeline is contingent upon requisite corporate measures, as well as legal and shareholder consents. Brown emphasizes the strategic rationale behind the separation: “This move is designed to cultivate optimal growth prospects and empower each business segment to effectively maximize its unique operational model.”
The Q1 performance saw GiG Media taking center stage with an impressive revenue jump of 52.2% to €28.0 million, bolstering the segment’s broad growth trend. Significantly, contributions from the acquisition of AskGamblers and the merger with KaFe Rocks were recognized as key factors. Although there was a reported 13.2% increase in FTDs amounting to 125,100, figures were lower compared to Q4 of 2023, attributed to expected seasonal variances.
Other notable Q1 developments include the establishment of a new media partnership in Latin America, exhibiting “significant” outcomes shortly after its inception, and the successful implementation of new marketing technologies within GiG Media. In terms of regional results, GiG Media’s revenue rose across major markets, with an especially striking 82.0% surge in the Americas, accounting for 22.0% of the division’s revenue. Growth in established markets such as the Nordics and Europe was also prevalent.
In contrast, the Platform & Sportsbook division’s report told a different tale, with revenue declining by 17.0% to €8.3 million. However, this figure was affected by the accounting treatments under International Financial Reporting Standards (IFRS), where most of the value of GIG Enterprise Solution was recognized in 2023. Excluding the impact of GIG Enterprise Solution, Platform & Sportsbook revenue saw a modest 5.0% increase.
