SBC News Voice of the Sports Betting Industry
Gaming Innovation Group (GiG) has reported ‘all-time high’ revenues for its Media, Platform and Sportsbook services, driving substantial business growth for the firm during Q4 2022.
Total quarterly revenue rose year-on-year by 44% from €18.1 to €26m, with adjusted EBITDA up 71% to €10.8m (Q4 2021: €6.3m), with a margin of 41.4% (34.9%).
EBIT, meanwhile, stood at €4m, an 80% increase on corresponding 2021 figures of €2.2m, with a margin of 15.5% (12.4%), whilst the Malta-based supplier closed the year with positive cash flow of €8.5m (€4.9m).
Nasdaq-listed GiG states that following the successful quarter and continued financial trajectory into the new year, it has initiated a strategic review to examine separating the company into two separate publicly traded enterprises.
Richard Brown, GiG CEO, said: “We have delivered a stellar quarter across the business with strong growth for Group revenues and EBITDA of 44% & 71% respectively.”
Operationally, a vertical breakdown saw revenue for the GiG Platform and Sportsbook rise by 54% to reach €8.2m ( €5.3m), with adjusted EBITDA for these segments standing at €1.8m ( €400k).
Growth for the platform and sportsbook was driven by six new partnerships signed during the quarter, as deals were clinched with Starcasino Group, Strike, Luckiest.com and LuckyBet, among others.
The quarter also saw GiG bolster its standing and business development in North America, specifically in Canada. Of the four brands launched by GiG in Q4, two were in Ontario.
Signing an agreement with an unnamed operator back in early December 2022, GiG highlighted Ontario as posing significant growth potential, citing H2 Gambling Capital data suggesting that the betting sector there will reach GGR of 2bn over the next three years.
The six agreements signed in the final three months of the year brought the number of live brands under GiG’s umbrella to 62 by the close of the quarter, whilst the firm was also able to secure an ISO 20000 certification for its platform.
Lastly, GiG Media’s operations were bolstered by an agreement signed with News Corp UK & Ireland Limited, which will see the division provide betting and casino content for UK media outlets TalkSport and The Sun.
GiG stated that post-close, the media agreement has delivered ‘material results just few months into operations’, although a major acquisition has overshadowed this, and three other platform and sportsbook agreements signed in the new year.
The firm had initially agreed terms to acquire AskGamblers.com from Catena Media in December, and in late January this year the €45m takeover was finalised, integrating the Askgamblers.com, Johnslots.com, Newcasinos.com and ‘several smaller domains’ into GiG Media.
“We are thrilled to add another top casino affiliate site to our portfolio, and believe it holds immense growth potential,” Brown said at the time.
“The acquisition also broadens our geographical footprint and increases revenue diversity both geographically and client wise, reducing the overall operational risk.”
Projecting continued momentum throughout the remainder of 2023, GiG stated that ‘January has developed positively’, citing revenue growth of 29% against January 2022.
