Gaming Innovation Group (GiG) has posted its Q1 2020 update, showing revenues of $33.7m ($35m, 2019) and an EBITDA of $2.7m ($4.4m, 2019), marking a return to quarterly growth after four consecutive quarters of decline.
Revenues for the B2B segment in Q1 2020 were $13.8m ($15.4m), while EBITDA was $1.4m ($3.3m). Revenues from Sports Betting Services were $0.2m ($0.3m) in the first quarter 2020, with EBITDA of $-1.8m ($-1.9m). The negative EBITDA relates to investments in technology and people to build sports betting services in-house.
GIG used the report to update investors on the restructuring strategy that has been initiated for its Sports Betting Services which, it said, will lead to around $434,000 in monthly savings when completed and place it in a sustainable position for growth and strategic partnerships.
The company noted: “The ambition is to gradually grow with existing and new long term partners, including the fast growing US market. GiG is one of the few B2B providers present with omni-channel online gambling services in multi-state jurisdictions in the US.” It added that the full effect of the cost cuts should be felt from the third quarter.
As part of the strategic review, GiG said it has actively discussed possible joint ventures and “other constellations” with potential partners to release the true asset value of its sportsbook. “Due to interruption to the sportsbook market by Covid-19, these initiatives have been put on hold,” it advised.
“Management feel that the strategic positioning of the sportsbook in the US market where the product is live in two states, and a large emerging market in regions such as Latin America and Africa which are beginning to regulate and start transition online, will drive demand for an end-to-end solution including sports betting which GiG is well positioned to capitalize on.