iG continued its quarterly growth in the second quarter 2020, with reported revenues of €16.7 (11.3) million and an EBITDA of €2.8 (1.5) million.
“Q2 was a strong start for GiG as its first quarter as a B2B only company, and the signings after the quarter confirm further my confidence that the Company can continue to grow and flourish which will deliver shareholder value in the years to come.”, says Richard Brown, CEO of GiG.
"GiG has improved its performance in the quarter across all of its business units, and I am very pleased to see our Media division that has historically had a 20% revenue exposure to Sports Betting move quickly and with force to enhance casino offerings to deliver a second quarter with consecutive revenue and EBITDA growth despite the ban on sporting events," adds Brown.
"Q2 was a strong start for GiG as its first quarter as a B2B only company, and the signings after the quarter confirm further my confidence that the Company can continue to grow and flourish as its well position strategically in addition to having a first rate product offering across its portfolio which will deliver shareholder value in the years to come," executive concludes.
- Continued quarterly growth with revenues in Q2 2020 of €16.7m (11.3), 47% growth Y/Y and 49% Q/Q.
- EBITDA in Q2 2020 was €2.8m (1.5), 93% growth Y/Y and 382% Q/Q. EBITDA margin of 17.0% (13.0%).
- Revenues in Media Services were €8.6m (8.6) in Q2 2020, EBITDA was €4.8m (4.7) with all time high for Paid.
- Revenues in Platform Services were €8.2m (4.2) in Q2 2020, EBITDA was €-0.9m (-1.1).
- EBITDA for Sports Betting Services improved to €-0.9m (-1.5) due to reduction in operating expenses by 44%.
- Cash flow from operations in Q2 2020 was €10.1m (3.2) and cash used in investing activities was €1.5m (3.5).
- The B2Cvertical was divested to Betsson effective on 16April 2020, with Betsson as a new long term customer on Platform Services.
- Media Services continued its quarterly growth in both revenue and FTDs, up 5% and 22% respectively.
- SkyCity’s successful online expansion in 2020 confirms GiG’s ability to transition a land based casino to online.
- Signed long-term agreement with GS Technologies Limited for the provision of GiG's platform and front-end development to a new casino brand.
- The sales pipeline developed positively, however some of the final contract negotiations was delayed as land based operators came to terms with actions around Covid-19.
- Cost savings initiatives are progressing according to plan, which is expected to further reduce operating expenses by year end 2020.
- The number of employees decreased from 709 to 487 year-on-year.
- The SEK300 million bond was repaid on 22April 2020.
Events after Q2
- Signed three new long-term agreements for GiG's platform including sports and managed services, further agreements are expected to be signed before year end
- The positive development continues after Q2, July revenues on adjusted basis were up 38% compared to same period last year
- The revenue guiding for continued operations for 2020 are increased to between €52 - 57 million, with an EBITDA expected in the range of €12 – 15 million.
See GIG full report