Gaming Innovation Group (GiG) has praised its media and sportsbook operations for helping deliver another record-breaking quarter in terms of revenue.
Both verticals saw their revenues improve by over 30% year-over-year, with CEO Richard Brown highlighting key media milestones and the post-acquisition plan of Sportnco as contributors toward the quarter’s high.
Brown added that despite the strong performance, GiG has “a continued emphasis on improvement as an operating principle” with a drive for “sustainable growth and increasing profitability”.
GiG media and sportsbook help deliver record quarter
Posting its Q3 results, GiG declared an all-time high in group revenue of $23.04m, a 35% YoY improvement (Q3 2021: $17m) following great quarters for both its media and its platform & sportsbook operations.
Per vertical, media also accomplished an all-time high revenue of $8.55m, a 35% YoY rise (2021: $5.83m), while also achieving quarterly records in player intake, as first time depositors (FTDs) hit 86,500, up 85% YoY (2021: 46,700).
Meanwhile, the platform & sportsbook unit reported a 36% growth in revenues YoY to $15.19m (2021: $11.27m) as its operations continued to expand globally, including across North and South America.
Q3’s adjusted EBITDA came in at $8.55m, up 47% YoY (2021: $5.83m) with a margin of 37% (2021: 34.1%). Media had an adjusted EBITDA of $6.84m (2021: $5.13m), while platform & sportsbook had an adjusted EBITDA of $1.71m (2021: $0.91m).
GiG also reported a net profit for the quarter of $0.6m (2021: zero) and a positive cash flow from operations of $10.06m (2021: $8.05m).
Commenting on the financial results, Brown said: “I am pleased with the development and performance of GiG over the third quarter.
“The business delivered another record quarter with revenue growth up 35% year-over-year whereof 24% organic, and adjusted EBITDA improved by 47% despite the general lower seasonal activity through July and August. September saw several areas of the business achieve new monthly records, setting a good pace for the coming quarters.
“We delivered a strong financial performance in the third quarter, and importantly we achieved some key milestones as we saw our media business continue to rapidly expand and scale its player intake. The group also took a meaningful step forward on the post-acquisition plan of Sportnco, where the technical integration of the sportsbook product was completed and we can now turn our attention to the next phases of the integration.”
During Q3, GiG media was granted a supplier license for the Canadian province of Ontario, where it has since gone live with two online casino brands.
Meanwhile, the group’s platform & sportsbook operations signed six new agreements – two in Latin America, one in North America, and three in Europe. Four brands went live during the quarter as well, bringing the total number of live brands by the quarter’s end to 62.
Following the end of Q3, GiG signed an agreement to power a leading land-based operator’s online expansion in the LatAm market, and three brands have gone live in Q4 so far.
October was also a positive month for the group, as its revenues were up 34% YoY and its media operations reached an all-time high player intake during the month.
Looking ahead, GiG noted that its combined operations with Sportnco for the full year 2022 should produce $87.51m to $93.55m in revenue and an EBITDA of $30.18m to $35.21m.
Long-term, the company aims to achieve an organic revenue growth of 20%, an adjusted EBITDA margin over 50% during 2024, as well as use cash generated from the business to lower leverage ratio while continually pursuing igaming growth opportunities.
Brown stated: “Despite another set of record results for GiG, we have a continued emphasis on improvement as an operating principle. We always focus on what we can do better, and how to deliver better to staff, clients and shareholders.
“Continued focus and drive towards our targets of sustainable growth and increasing profitability are central themes as we develop our plans for the years ahead. We are never satisfied and we still have so much to go out and achieve.
“Given the business’ strong position within diverse and high-value areas of the B2B supply chain in the igaming and sports betting industry we enter the tail end of the year and into 2023 with real excitement, building on from where we stand today.”