Gaming Innovation Group (GiG) reported a revenue of €19.1 million for the quarter ending March 31, marking its second consecutive record-setting quarter. A significant contributor to this achievement was the robust performance of its media sector, which saw a remarkable 40% year-on-year revenue increase, reaching €14.1 million in the first quarter. Chief Executive Richard Brown noted that the affiliate business experienced record player intake, hitting 69,800 for Q1, with intake from paid campaigns soaring 160% compared to the previous year.
“We’ve been launching quietly in a number of markets,” Brown said. “Over 12 to 18 months, we launch, analyse and optimise. Once we’ve managed to ascertain the optimum return on investment we ramp up marketing spend.”
While the publishing arm saw a slight decline in player intake, this can be attributed to a strategic shift toward attracting players with higher lifetime values. “From our side we’ve always had a focus in player value, which is reflected in the structure of the revenue make-up,” Brown explained. “The majority comes from revenue share; 90% of deals have a rev-share component, so for us it’s important that customer values are high.
“We identified some of our historical markets and assets that were doing fine – but not great – in terms of player values. [In these areas we are now] doubling down on player values in areas where we had good volume, but low value.”
The media division's success has been particularly driven by growth in Latin America and Central and Eastern Europe, with Brazil noted as a standout performer. Brown emphasized that, although each market has its particular characteristics, insights gained from Brazil can be applied elsewhere.
For instance, the Brazilian market has revealed the importance of brand-dominated keywords and indicated that higher-value customers show a preference for specific payment methods. This trend underscores the overall strength of the media division, which Brown described as “exceptionally well performing.” He highlighted that GiG’s networks are capturing market share even in lower-growth regions like Europe.
“The team is working day-in, day-out and the technology and the product is driving that growth,” he stated. “We’re actually taking market share in lower growth markets so it’s not just about new market expansion, but by doing right on the product side. We still have a lot of runway.”
The acquisition of Sportnco, finalized on April 1, is expected to influence not just GiG’s platform segment but also its media division. “Sportnco’s highest growth market was LatAm, and we’re pleased to have a strong foothold there,” said Brown, noting that it has clients in markets where GiG's media presence isn't as strong, prompting them to target these opportunities more aggressively.
“There’s knowledge crossing backwards and forwards, which is really positive. We haven’t necessarily had success when we first tried [in some markets] and can then look again at how to make them succeed.”
For Q1, GiG’s platform division saw a revenue drop following clients exiting the Netherlands in Q4 2021, as well as the migration of Hard Rock from the platform. However, Brown suggested that rolling twelve-month revenue for software as a service (SaaS) reflects the division's true performance. “If we look at that underlying business it’s gone from €11.9 million to €15.9 million over the last 12 months, which shows the addition of new clients and new markets are driving growth,” he remarked. “I’m very pleased with these results, despite the top-line impact.”
The addition of Sportnco is expected to offer immediate benefits, generating €2.4 million in Q1 revenue. Brown is optimistic that as clients finish their cooling-off periods, they will reconsider entering the Dutch market again. “Over the next six months as clients and businesses start to look at that market again, we will probably support some existing partners’ entries,” he said. “There’s not that many operators in the market currently, so there will be an increase in demand over the coming 12-18 months, and we want to position ourselves for that.”
The integration of Sportnco is a priority for GiG, with an aim to complete it by the third quarter. Brown expressed confidence in the efficiency of the process, which began as soon as the deal closed on April 1. “The team on both sides has really shown a desire to learn, to understand the product sets, and there’s a really strong appetite to make it successful – it’s really important that the people involved believe in it.”
In a significant step forward, GiG has secured its first agreement following the Sportnco acquisition, partnering with Angolan operator Full Game SA to provide a sportsbook and player account management solution. This agreement emerged from a lead generated by Sportnco.
Brown explained that GiG’s contributions were valued in the arrangement, underscoring the cultural fit between the two companies. “There were some elements that GiG could contribute to that partnership, so we took it to the client and they believed in the structure,” he noted. This deal positions GiG strategically in another emerging market, reinforcing its approach to growth in both European regions like France and Germany and further afield in Buenos Aires.
“We see Africa as a developing market,” he stated. “We see it’s on at the kick-off point. It might be a bit difficult, and take some learnings, but there are a number of local and international operators doing well, and we can see it being a material market in future.
“It’s like Latin America; that wasn’t on everyone’s roadmap, but now it’s a big growth market.”
GiG has also advanced in a well-established market, recently announcing a deal to supply a tier-one UK online casino operator. Brown compared this partnership to GiG's existing relationship with New Zealand’s SkyCity, a shareholder in the company. “We have full confidence in how we operate that [project] and know how to make it work,” he asserted. “We’re really excited to bring our omnichannel solution into a larger market because we know it gives us such a good access point.
“With any kind of meaningful retail business we have really strong potential regardless of the market, but the UK is huge. Being able to leverage that omnichannel solution that has been proven elsewhere will have a material impact on the business.”
Despite potential challenges posed by the upcoming Gambling Act review whitepaper expected in late May, Brown remains confident about the scale of opportunities in the UK market and the company’s readiness to succeed, drawing on its experience in various territories.
