Gaming Innovation Group’s (GiG) record performance in its sportsbook and media segments, as well as its platform segment led to a revenue peak during the first quarter 2023.
The company was able deliver its 13 consecutive quarter of growth, despite the fact that Q1 is normally a weaker quarter. This increase came on the heels of a record-breaking Q4 which included the Fifa World Cup.
GiG’s media business grew in the first quarter of the year after it acquired Askgamblers.com, a casino affiliate site from Catena Media. The deal also included assets like Johnslots.com, and Newcasinos.com.
Richard Brown, GiG’s chief executive, said that the “successful” and “impressive” steps taken during the quarter will help the Group achieve and pursue further growth on the long term.
Brown stated that “the business continued to grow across the roadmap of delivery and it was a commercially successful quarter, with the signing seven additional new agreements.” Brown said, “We have a packed and exciting roadmap for the upcoming year which will support the future growth and margin expansion potential of the segment.
I am pleased to announce that 91% of operator revenues come from markets which are either regulated locally or will soon be regulated.
GiG Q1 Results
The revenue for the three-month period ending 31 March was EUR28.4m ($31.5m/PS25.0m), an increase of 48.7% over the EUR19.1m recorded in the same period last year.
GiG Media accounted for EUR18.4m in revenue, a 30% increase over 2022. This was helped by AskGamblers being added mid-quarter. About 65% came from revenue-share agreements, 31% from paid media, 25% from listing fees and services, and 10% from cost per acquisition.
GiG Media also reported that it referred 110.800 new first time depositors to operators during Q1, an increase of 65.4% over the previous quarter.
The revenue from platform and sportsbook doubled, going up to EUR10.0m. This is a huge increase. The revenue doubled from EUR5.0m in 2022 to EUR10.0m this year, despite a EUR400,000 negative impact on the previous year due to Betsson’s expiration of its premium fees as of 15 April 2022.
In this sector, 91% of revenue came from markets that are currently or will soon be regulated locally. There is a timeline or progress toward local regulation. Around 64% of operator revenues came from Europe. 13% North America. 14% South America.
In terms of spending, the cost of sales increased by 944.8% (EUR303,000), while marketing costs rose 50.0% (EUR5.7m) and other operating expenses grew 24.4% (EUR10.7m). Total operating costs were up 33.3% at EUR16.4m.
After including all expenses (financial and otherwise), the pre-tax profit was EUR4.2m. This is a 147.1% increase year-on-year.
GiG paid EUR200,000 tax. This meant that the net profit for continuing operations was EUR4.0m. This is a 150.0% increase. After accounting for an EUR400,000 loss in discontinued operations, the total net profit reached EUR3.7m. That’s a 236.4% increase. The adjusted EBITDA also increased by 72.3%, to EUR11.2m.
Brown stated that the first quarter of 2023 saw Gaming Innovation Group make a number of impressive and successful steps. Many of these are helping to generate excitement in the company about the potential of the other companies within the Group.
Strategic Review
Brown also referred to the Strategic Review, which was launched in February and aims to distribute Innovation Labs to its shareholders. This distribution would split GiG into independent publicly listed companies.
Brown added that “the quarter saw the company begin the strategic review project and spin-off successfully, with good progress made in the early planning stages of this complex exercise.” “We are now moving into a more operational period for the rest of the year,” Brown said.
“GiG has had a great start to the new year, with consistent progress on our long-term plan for value creation. We anticipate that we will continue to execute our strategy with focus and discipline to achieve our growth and profit targets.”
