GiG achieves record revenue growth in Q2
Author:
Muhammad Gregory
Leading iGaming technology company, Gaming Innovation Group (GiG), recently published the financial results for the second quarter and first half of the year. The positive reports indicate a record-breaking growth in both revenues. During the first half of the year, the company also disclosed plans to separate its GiG Media segment from the Platform and Sportsbook vertical.
GiG achieves record revenue growth in Q2. ?Austin Distel/Unsplash
Online gambling operators are always hunting for top-notch iGaming solutions to offer high-standard games to their new as well as existing customers. For such solutions, they turn to iGaming solution providers like GiG. The Malta-based solution provider is one of the most renowned iGaming companies in the world. It offers cloud-based product and platform services and performance marketing to its B2B partners. The company is listed on the Oslo Stock Exchange and Nasdaq Stockholm. GiG operates two business units focusing on the B2B market in the iGaming sector – The Platform Division (GiG Core) and the Media Division (GiG Media). GiG Core focuses on developing digital products and offers managed services to land-based and online gambling operators. GiG Media provides performance marketing services to help operators acquire and retain customers. This segment is quite pivotal for operators as it helps them expand their customer base without putting extra effort into finding third-party marketing solutions that may bring in massive additional costs.
Over the years, GiG has provided various services, including effective solutions for platforms, sportsbooks, casinos, poker, and lotteries. The group also signs platform agreements with iGaming operators that allow them to leverage GiG’s technology and infrastructure to launch and operate their online casinos or other gaming platforms. An impressive portfolio has boosted GiG’s credibility, establishing it as one of the most reliable iGaming technology companies. By focusing on the B2B sector, the Malta-based company has positioned itself as a trusted client partner. The company’s listing on the Oslo Stock Exchange and Nasdaq Stockholm has further boosted the visibility and credibility of the company in the global market while also providing access to a larger pool of investors and capital. Over the last five years, GiG has become profitable, with earnings growing at an impressive rate. The company has achieved consistent earnings growth, with an average annual growth rate of 29.3% to 43.8%.
GiG announced plans to split its business into two independent publicly listed companies earlier this year. The division will separate its Media vertical from the Media and Platforms segment, and then the two verticals will operate individually. The company has initiated a strategic review of its business as part of the split plans. GiG sees growth opportunities in both verticals and believes that dividing them into two entities will allow each division to opt for an ideal mechanism and nab all growth opportunities. Once the division is complete, GiG Media, which collected a record-high revenue in H1 2023, will operate independently for the first time since the establishment of the company. The Malta-based iGaming solutions provider has appointed Richard Carter as the new CEO of its Platform & Sportsbook division, which grew 27% in the second quarter this year. Jonas Warrer has been instated as the CEO of GiG Media, a segment that recorded a 47% increase in Q2 2023.
GiG confirmed the record-high revenue collection in the year’s second quarter in its latest revenue report. All segments contributed to the growth as the quarterly revenue rose 40% year-on-year (YoY) and touched €31.1 million. Another impressive aspect was that 22% of the total growth during Q2 2023 was organic. The adjusted EBITDA also saw a significant increase, reaching €14 million, up 68% from last year’s corresponding period. The 27% YoY increase in revenue from the Platform & Sportsbook segment came after it roped in €9.3 million, while GiG Media reached an all-time high of €21.7 million. During the quarter, the company launched two new brands and signed three new agreements for its Platform & Sportsbook segment. One of the deals was with Betgenius to combine their platform technology with the operator’s end-to-end live data, trading, and risk management services. In Q3, five more brands have gone live, including new market entries in Serbia and further expansion into Latin America. The number of live brands is slowly approaching the 70-brand mark. The group’s platform and sportsbook are also live in the U.S. state of Maryland.
The company registered a record-high revenue in Q1 as well
A record-high revenue in Q2 has undoubtedly set the tone for GiG’s growth for the rest of the year and beyond. The new year started similarly for the Malta-based company as revenue generation broke older records in Q1 2023. In the first quarter this year, a whopping 49% YoY increase saw the revenue soar to €28.4 million. The group signed eight new agreements during the first quarter, of which three were in Europe and four on the American continent. According to the CEO of GiG, Richard Brown, the Q1 2023 results were a multitude of successful and impressive steps forward for GiG.
At the end of March 2023, 60 fully operational brands were under GiG. The quarterly revenue in Q1 2023 recorded a 9.2% quarter-on-quarter (QoQ) increase. The most significant increase was recorded in the Platform & Sportsbook segment, as revenue increased by 100% YoY from €5 million to €10 million. Revenue from GiG Media marked a 31% YoY increase, rising from €14.1 million to €18.4 million. The adjusted EBITDA was up 75 percent YoY from €6.7 million to €11.7 million.
GiG reaches Maryland after a long wait
GiG recently announced it is now live in the US state of Maryland as part of its growth strategy. It did so in partnership with Crab Sports. Through this collaboration, GiG is providing its cutting-edge platform and sportsbook services to enhance the wagering experience for Crab Sports customers. The Malta-based company announced the partnership initially in June last year. However, the deal came to fruition recently, with Crab Sports becoming the 11th gambling operator to go live in Maryland. Established operators like BetMGM, Caesars, PointsBet, BetRivers, DraftKings, Barstool, FanDuel, Betfred, Fanatics, and SuperBook are already present in the state, and Crab Sports will face stiff competition from these notable names.
Marcel Elfersy, GiG’s chief commercial officer, was enthusiastic about the launch of Crab Sports. He emphasized the value of partnering with a localized brand while highlighting the shared vision of both companies. He stated that both entities aim to capitalize on the opportunities within Maryland and the broader US market by establishing a robust partnership between operator and provider.
“It’s great to be launching with a localized brand like Crab Sports. We share their vision that Maryland, and indeed the wider US market, can benefit from the opportunities of a strong partnership between operator and provider, building a unique and personalized customer experience that is tailored for local interests.”
