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Gaming Innovation Group (GiG) will complete the division of its Platform & Sportsbook and Media business units in Q3 2024, it has revealed.

Topline numbers

GiG reported all-time high revenue of €36.2m in Q1 2024, representing a 28% year-on-year increase.

Breaking down the total, the GiG Media business recorded €28m in revenue during the quarter, up 51.9% from the same period the previous year.

Excluding the impact of M&A, the division saw organic growth of 28% from the previous year.

GiG chairman Petter Nylander said: “Since 2019, our GiG Media business has been on an upward trajectory, marked by robust cash flow and increased earnings diversity.

“The acquisition of AskGamblers in February 2023 has proven fruitful, driving solid revenue growth and first time depositors.

“Moreover, the successful integration of KaFe Rocks in December 2023 has further diversified our business portfolio, contributing positively to our EBITDA margin.”

Meanwhile, the company’s Platform & Sportsbook division performed less positively as revenue declined 17% to €8.3m.

The business argued that the fall resulted from the way revenue from its company’s GiG Enterprise Solution was accounted for, with the vast majority of revenue recorded in 2023.

GiG argued that excluding the solution for comparison purposes would have given the business unit year-on-year revenue growth of 5%.

Continued EBITDA growth

Adjusted EBITDA for the group stood at €12.6m, up 8% from the previous year.

This was on an EBITDA margin of 34.8%, a drop from the 41.1% margin recorded in Q1 2023.

EBITDA differed wildly between the divisions, however, with GiG Media reporting 69% growth to €13.5m, with a 48% margin.

Platform & Sportsbook on the other hand delivered a €0.8m EBITDA loss, compared to €3.6m in positive EBITDA in the prior-year period.

The supplier blamed the fall in its GiG Enterprise Solution revenue, as well as a significant rise in sales and marketing costs, as responsible.

Overall, the company reported a €3.6m profit from continuing operations for the quarter.

The market responded negatively to the financial report, with GiG’s share price falling 7.9% to SEK30.35 per share in early trading, before recovering to SEK31.35.

Planned Q3 split

GiG confirmed today that the company is “operationally ready” for the planned split of its Media and Platform & Sportsbook divisions.

The Media business will comprise the company’s affiliate and lead generation services, and is the larger of the two divisions.

GiG Media will be led by Jonas Warrer as CEO post-split, while Richard Carter will run the independent Platform & Sportsbook entity.

This process, first announced as part of a February 2023 strategic review, will see the split take place in Q3 2024, subject to legal and shareholder approvals.

The purpose of the split is to optimise growth opportunities by ensuring both businesses can leverage their operating models effectively.

GiG chairman Nylander added: “As we progress into the future, we remain steadfast in our commitment to creating sustainable long-term growth and value for our shareholders.

“Our strategic initiatives, including acquisitions, product innovation, and operational enhancements, are geared towards expanding our market reach and maximising revenue opportunities.”

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