GUTS Helps GIG in Revenue Increase
by Glenn Baird - August 11, 2020
Gaming Innovation Group (GIG), the online gaming platform for Guts Casino, has announced an increase in revenue over the second quarter, mainly thanks to its platform services.
GIG’s revenue in the months leading up to June 2020 was €16.7m, which is an increase of over 32% when compared to the same period last year. One addition that was not in place last year is the revenue from the New Zealand-facing SkyCity business that went live last August.
The most significant increase came from GIG’s platform services, which saw an increase of nearly 50% from €4.2m to €8.2m.
Additionally, revenue from media services was consistent to levels set last year, sitting at €8.6m, despite the impact of Covid-19. It would appear that any losses in sports during the period were offset by an increase in casino media.
GIG has reported a €200,000 loss in sports over the period, but this would appear to be the only division of the company to fall short during the Covid-19 crisis.
Another area of increased revenue was in GIG’s B2C gaming operations, which includes operators such as Rizk.com, Guts.com, gutsXpress.com, Kaboo.com and Thrills.com. All of these operators were sold to Betsson back in April and made a combined increase of €2.9m in revenue.
GIG saw an increase in their spending on marketing, up by 24.4%, which meant that they ended the quarter up €2.8m before tax, depreciation and amortisation, which means that despite the upturn in revenue GIG will end the quarter with a €2.2m loss, something that is an improvement on the €4.4m they loss they recorded in the same period last year.
The story gets worse again when other expenses are taken into account, meaning that GIG ends the quarter down by €5.1m. However, it is worth noting again that this is an improvement on the €6.5m lost during the same quarter last year, something that suggests that the company is heading in the right direction.
“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% 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,” GiG chief executive Richard Brown said.
“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.”
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