This week, Gaming Innovation Group (GiG) released its Q3 financials, with CEO Richard Brown citing the trading period as a B2B-focused company delivering a major move forward.
The business, which lives in two US states with its sportsbook and operates in nine states with its WSN.com affiliate site, reported Q3 sales of $20.9 million with $3.7 million in EBITDA. Adjusted sales were $16.6 million, a 42 percent improvement from $11.7 million year-on-year, while EBITDA rose by $4.2 million.
According to Brown, Q3 development was complemented by solid performance in the sales funnel of the platform, leading to six additional long-term contracts signed in the quarter.
Furthermore, in the fourth quarter, two contracts were already signed, adding up to an integration pipeline consisting of 15 new brands, six of which are online land-based operators and eight in new regulated markets.
The company noted, informing investors, that its sportsbook product is currently residing in two states on the US market and will be used by new customers 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 provided, with Hard Rock International in the US, a recap of the joint termination of its website and sportsbook services. 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.”
GiG told investors that it is in a good position to explore more market opportunities in a rapidly changing US landscape, talking more broadly about US goals, making a completely compliant and quality solution operational in two states that is easily configurable to additional states.
GiG’s World Sports Network (WSN.com) proprietary affiliate platform has also continued to expand in the US market, and an affiliate licence for West Virginia has been issued. GiG was also licenced to operate in Tennessee following the closing of Q3 and is now present in nine U.S. states (New Jersey, Indiana, Pennsylvania, West Virginia, Iowa, Colorado, Illinois, Nevada and Tennessee).
The company said: “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.”
Richard Brown our CEO, will present the Q3 2020 #financial #results live today at 10:00 CET. #Q3 has delivered a significant step forward for us as a #B2B focused organisation, revenues grew by 42% and EBITDA improved by €3.6M (850%). $GiG https://t.co/6aptHqMtCG
— Gaming Innovation group (GiG) (@GIG_online) November 4, 2020