GiG's Year-on-Year Revenue Soars by 26%

Gaming Innovation Group (GiG) is among industry high-fliers that have the bragging rights to new financial merits and last year’s achievements. Much like their industry peers, Penn National, who acquired Louisiana’s Margaritaville Resort last month, made a gigantic leap forward in those terms…

…this distributor of omni-channel gaming solutions has published an official report that unveils a 26% annual revenue rise for 2018!

The total operating revenue for the 12-month period was €151.4 million – a significant advancement from 2017’s €120.4 million.

The Cause and the Effect

Over the course of the entire year, the company has been gradually investing over €16 million in product and technology development.

The investment had a major and almost immediate impact. According to CEO, Robin Reed…

…the well-placed €16m closed the circle and, thanks to which, the company now offers “products and services across all major verticals in the iGaming value chain.”

EBITDA also rose by 28% on an annual level and reached €16.1 million, although it really stands at €18.9 million when one-off costs incurred during fourth quarter are excluded.

You Win Some, You Lose Some

To a more negative point:

The company also posted a post-tax loss of €21 million due to “deprecation and amortisation of assets” and as a result of widely increased investments. This deprecation also induced further costs of €20 million and impairment charges of €13.7 million.

Not including these expenses and sacrifices, GiG’s fourth quarter income equaled last year’s record of €39.9 million. Q4’s revenue was largely driven by B2C segment growth and the all-time high proceeds of €25.8 million which is a 2% jump compared to the same period last year. Earning in media stood at €8.7 million – also a record…

…with a notable exception to the rule being the B2B segment whose profits declined by 9% on a yearly basis, to €16.4 million.

Making it Count

Operating expenses were cut by 8%, which was achieved by staff restructuring and a decrease in the number of employees.

Reed commented: “In Q4, we matched our previous all-time-high in revenues and for the full year 2018, we grew revenues and EBITDA with nearly 30% over 2017,” Reed said. We have started our expansion into regulated markets with big brand partners, and we have launched our online and retail sports betting platform in the US.”

Looking at recent events of importance, GiG entered the content-based partnership with Oryx Gaming this month, citing Oryx’s “perfect fit” of a portfolio as a driving force behind this strategic move.

The sports betting segment was not forgotten thanks to a newly formed alliance with Relax Gaming that was also formed on foundations of content distribution.

Source:

“GiG hails investment drive as revenue climbs in 2018”, igamingbusiness.com, February 11, 2019.

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