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GiG has revealed it has performed itss ‘13th successful quarter’ in the latest quarterly update from the company.
Petter Nylander, GiG Chairman of the Board, said that they are ‘proud’ of another all-time-high revenue,driven by organic and M&A developments across its media and sportsbook ventures.
Presented by Jonas Warrer, CEO Media and Group CEO, the reported revenue generated by GiG Media stands at €28m for Q1 2024 – an increase of 52% compared to the previous corresponding period (pcp) – 21% of which is organic.
The GiG Media EBITDA margin also improved compared to the pcp, as well as Q4 2023. Warrer added that 63% of revenue comes from recurring revenue share agreements. Earnings from these agreements grew 47% YoY.
Revenues from the legacy Nordics and Europe markets are up 57% YoY. In the Americas, GiG Media saw an increase of 82% YoY in revenues, which in total represented 22.2% of GiG Media revenues.
Further on, Warrer explained that 2023 was a ‘year of expansion’ for the group, and brought with it the realisation that ‘valuable players are more important than many players’. In other words, going forward the focus will be on acquiring players with a healthy lifetime value.
Diversification is also another key aspect for the company, with Warrer explaining that tech, and specifically marketing tech, ‘is a ticket to compete in new marketplaces’ – with tech and data expected to take prevalence for GiG across the rest of the year.
This is to ensure revenues from additional channels, such as websites, to avoid dependency on singular markets.
In fact, revenues across all portfolio websites grew in Q1. The quarterly website revenue outside of the top five GiG Media websites increased by 46% YoY.
The number of high-value customers for GiG Media has also significantly increased, with clients making quarterly revenue above €10,000, going up from 178k in Q4 2023, to 243k in Q1 2024.
Warrer also mentioned the recent KaFe Rocks acquisition by GiG, saying that it is ‘in a very good place’ just three months since its inception.
All in all, the Group CEO summarised that Q1 2024 has been an all-time high quarter for organic traffic, player registration, revenue and EBITDA. Based on these results, the group expects a strong start to Q2, with April revenues forecasted to reach between €9.8m and €10m – which would indicate a 39% increase YoY.
Continuing the call, Richard Carter, Platform & Sportsbook CEO, commented that the approach going forward will be to “transform sportsbook into a more competitive organisation to improve cash generation, growth, and sustainable return to investment”.
Carter explained that progress has been made towards these goals in Q1, with four new agreements being reached for existing regulated markets.
GiG’s flagship product suite, CoreX, SportX, and LogicX, all saw ‘strong momentum’. The SportX sportsbook was launched in Ontario, Canada, as well as in two provinces in Argentina. The company has also managed to upgrade the compliance of its offering for the newly-regulated market of Peru.
However, Platform & Sportsbook revenue was down 17%, which Carter attributed to the GiG Enterprise Solution dragging behind together with a number of client exits.
Re-calculated to exclude these two factors, the Platform & Sportsbook revenue has increased by 20%.
Carter still expects strong tailwinds, having launched eight brands in Q1 2024 compared to only two in Q1 2023 – a four-fold increase.
Predictions are that these brands will generate revenue of around €1.3m compared to the pcp’s €500k.
Due to the Q1 results, Carter expects additional 24-to-28 brand launches, with 18 brands already in the integration pipeline.
As a consequence of the standalone Platform & Sportsbook results, Chairman Petter Nylander confirmed that GiG ‘is ready to split Platform and Media’ in Q3 2024, with both verticals ‘well-positioned’ to provide shareholder value as individual businesses.
