iGaming technology company Gaming Innovation Group (GiG) has shared its financial results for the first quarter of the year. For the period ended March 31, the Oslo Stock Exchange-listed business delivered all-time high revenues of €19.1 million ($20.1 million), an increase of 27% year-over-year from €15 million in Q1 2021, all attributed to organic growth.
"I am satisfied with the company's progress in the first quarter, and we now move toward an exciting second quarter where our global strategic position across multiple areas of high value within the iGaming industry creates truly exciting prospects for growth across the business units", said Richard Brown, CEO of GiG.
The company has also posted an EBITDA of €6.5 million ($6.8 million), up 32% from the comparable period last year, and an EBITDA margin increased to 34.2%. Meanwhile, EBIT was up 53% to €2.9 million ($3 million), and a positive net profit of €1.1 million ($1.2 million) was delivered, with an earning per share of €0.01.
Breaking down revenues by segment shows that Media Services posted an all-time high of €14.1 million ($14.8 million), an increase of 40%, with an all-time high EBITDA of €6.8 million ($7.2 million). However, revenue for Platform Services was down by 4% to €5 million ($5.3 million), mostly attributed to the departure of Hard Rock and a Dutch market exit in Q4 2021.
GiG's CEO Richard Brown
GiG and Hard Rock first announced a mutual termination agreement of platform and sportsbook services in late 2020, citing the strategic aims of both companies laid in separate paths. As for the Dutch market exit, many gambling companies have been affected by regulatory changes in the European country, which led several operators to withdraw until a new license is secured
Other highlights of the reported period find that, excluding white labels and premium fees related to historic B2C sales, Platform revenue has increased by 20% YoY; while Media Services reached a fifth successive all-time high in quarterly revenue and player intake.
And while Hard Rock has ceased its relationship with GiG, the group has extended its long-term agreement with Betsson Group for the provision of Platform & Managed Services, taking the term of their existing contract to Q4, 2025.
We are happy to announce that we have extended our contract with our partner @BetssonGroup for the provision of our #Platform & #ManagedServices, which include Customer Service and full business operations across multiple territories. $GiG#iGaming https://t.co/TkHDLsR2z4— Gaming Innovation group (GiG) (@GIG_online) February 11, 2022
Furthermore, two new brands were launched during the first quarter of 2022, taking the number of live brands to 25 at quarter-end. Additionally, three new client projects were completed during the period. But some of the company’s most important recent announcements came after the period ceased.
Among them is the completion of GiG’s $56 million acquisition of sportsbook provider Sportnco, which was first announced in December last year. The deal was finalized on April 1, and since then GiG has signed an agreement with existing Sportnco partner Betway for the provision of sportsbook and PAM for Portugal, among other deals.
In late April, Gaming Innovation Group also announced a signed deal with a “Tier 1” UK operator to supply its managed service solution. The turnkey solution includes a technical platform, fully managed services, gaming content, frontend development, CRM, compliance, and marketing.
It is anticipated that the full contract will be signed during this month or in June, and will be for an initial fixed period of 3 years with go-live projected to be in the second half of 2022 with an expected positive contribution from Q4, 2022 onwards, according to a press release.