Gaming Innovation Group has lauded second quarter mitigation efforts, via cost control programs combined with pivots in markets to drive growth in casino, as the firm raises 2020 guidance.
Acknowledging a delay in onboarding new clients due to the short term COVID-19 effects, following its switch to become a fully independent B2B provider after the divestment of the B2C segment earlier in the year, the firm anticipates revenue for continued operations of €48m-€53m, with an EBITDA of €12m–€15m.
Subsequently, guidance for 2020’s continued operations have increased with revenue expected between €52m-€55m, with an EBITDA of between €12m–€15m.
“Q2 was a strong start for GiG as its first quarter as a B2B only company, and the signings after the quarter confirm further my confidence that the company can continue to grow and flourish as its well position strategically in addition to having a first rate product offering across its portfolio which will deliver shareholder value in the years to come,” noted Richard Brown, GiG CEO.
Making the update in its latest quarterly financial report, GiG reported revenue of €16.7m, representing a 47 per cent increase from €11.3m after continually lauding its B2C divestment to Betsson Group for €33m with the deal including operator brands Rizk, Guts, Kaboo and Thrills.
Gross profit for the quarter was €15.9m, a rise of 43 per cent from €11.1m and EBITDA reached €2.8m (2019: €1.5m), however, employee numbers decreased from 709 to 487 year-on-year.
Brown explained: “I am pleased with the development of the business over the second quarter, with the execution of several strategic initiatives completed and executed upon that will place the company in a fundamentally strong position to capture future growth.
“An important milestone was reached in mid-April when we completed the transaction to divest the B2C business and the repayment of SEK 300m bond, which significantly improved the company’s balance sheet while in conjunction allows the company to focus on its long term ambitions of being a global leader within the igaming B2B space.
“GiG has improved its performance in the quarter across all of its business units, and I am very pleased to see our media division that has historically had a 20 per cent revenue exposure to sports betting move quickly, and with force to enhance casino offerings to deliver a second quarter with consecutive revenue and EBITDA growth despite the ban on sporting events.”