Gaming Innovation Group (GiG) has published its Q3 financials this week, with CEO Richard Brown citing the trading period as delivering a significant step forward as a B2B focused organization.
The firm, which is live with its sportsbook in two US states and present in nine states via its WSN.com affiliate site, recorded Q3 revenues of $20.9m with EBITDA of $3.7m. Adjusted revenues came in at $16.6m – an increase of 42% from $11.7m year-on-year, while EBITDA was up by $4.2m.
Q3 growth, said Brown, was complemented with strong success in the platform sales funnel which resulted in six additional long-term contracts signed in the quarter.
In addition, two contracts have been signed already in the fourth quarter, adding up to an integration pipeline consisting of 15 new brands – six of which are land-based operators going online and eight in new regulated markets.
Updating investors, the firm noted that its sportsbook product is currently live in two states in the US market and will be used by new clients in Latin America. “Large emerging markets 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,” it said.
GiG also offered a recap of the mutual termination of its platform and sportsbook services with Hard Rock International in the US. It stated: “Both parties acknowledge that despite a fruitful relationship and upswing in results through 2020, a commercial agreement to move forward could not be agreed and the strategic aims of both companies lay in separate paths.
“Hard Rock represented less than 2% of GiG’s revenues in the last 12 months, with a marginal negative contribution on EBITDA. Hard Rock will immediately release GiG from the contractual exclusivity clause allowing for GiG to pursue further nationwide US business which we believe can lead to future success as more states regulate online.”
Talking more generally about US ambitions, GiG told investors that it is in a strong position to pursue further business opportunities in a fast-evolving US landscape, having a fully compliant and quality solution operational in two states that is easily configurable to additional states.
GiG’s proprietary affiliate site World Sports Network (WSN.com) has also continued to grow in the US market, and was granted an affiliate license for West Virginia. After the closure of Q3, GiG also received license to operate in Tennessee and is now present in nine US states (New Jersey, Indiana, Pennsylvania, West Virginia, Iowa, Colorado, Illinois, Nevada and Tennessee).
Said the company: “This enables expansion in the US, reflecting the ambition to be an influential player within the US market. GiG’s online casino guide Casino Tops Online also boasts licenses in New Jersey and Pennsylvania, following the intent of having a diverse market approach and leveraging on Media Services capabilities.
“Historically, revenue from sports has made up approximately 20% of Media Services revenues, and this was negatively impacted by COVID-19 in the second quarter. FTDs from sports betting have seen a steady increase in the third quarter, up 150% quarter-over-quarter, and further improvements are expected going forward.”