Issuing its first trading statement as a Nasdaq Stockholm-listed enterprise, Gaming Innovation Group (GiG) details a tough opening to 2019 trading, as the company undertakes Swedish market adjustments.
Updating investors, GiG records a 13% group revenue decline to €32 million (Q12018: €37m), attributed to anticipated Swedish market costs following the re-regulation of the market.
Swedish adjustments impacted GIG’s revenue segments for both B2B €14.2 million (Q12018: €15.3m) and B2C €20.2 million (Q12018: €25.4m) segments.
Adjusting to new Swedish conditions, GiG governance details that the company ‘tightened its cost control’, reducing its period cost of sales and marketing expenditures.
Despite its revenue slowdown, GiG maintained a positive EBITDA of €4.1 million (Q12018: €4.3m) in-line with corporate expectations.
Robin Reed, GiG CEO, commented: “The Company delivered an EBITDA of €4.1m in Q1 and the key highlight was all-time high revenues and EBITDA in our media business. It is a performance I am reasonably satisfied with in light of the loss of a major B2B customer which we announced in Q4-18, and the new regulation in Sweden which is impacting both our B2C and B2B revenues. We had anticipated this and managed the impact by careful cost control.
“The business is robust with cash flow from operating activities of €2.6m. GiG has become better and more competitive as the Company matures. Our leadership has never been stronger, our processes are more robust, and our strategic understanding and intent has evolved. I am looking forward with confidence to the growth opportunities for the rest of the year.”