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Gaming Innovation Group (GiG) has announced a strong start to its 2021 trading, meeting growth goals in all verticals and demonstrating the network business’s ability to overcome regulatory hurdles.
Normalised company sales grew by 44 percent to €15.4 million, compared to €10.7 million in 2020 trading, while EBITDA increased by 674 percent from €600,000 to €4.6 million, with the normalised margin increasing by 29.6 percent.
German regulatory implementation
Despite facing headwinds in the first quarter from German regulatory implementation, which had a “effect on short-term sales,” as well as “low contribution from the white label market,” the group announced continued progress in its platform divisions.
The company attributed its platform’s performance to competition in the technological infrastructure and an emphasis on SaaS operations, citing a 6 percent quarter-over-quarter increase.
Overall, normalised revenue for Platform Services was €5.2 million, up 19 percent from Q1 2020 earnings of €3.8 million, with a positive quarterly EBITDA of €0.3 million, up from – €1.6 million a year ago.
A long-term contract with PlayStar NJ drove GiG’s expansion in New Jersey’s online casino sector in February, followed by a deal focused on a revenue sharing model with a “well-established German facing operator” in March.
While a platform partnership with a second European media company was terminated due to “changes in strategy” in the partner’s commercial approach, GiG signed an agreement with a “third iGaming provider” in April, powering “a new online casino with the same ownership as an existing partner.”
GiG’s media spending, according to Group CEO Richard Brown, was a second primary factor of the company’s strong start to 2021, with sales up 23 percent year-on-year to an all-time high of €10 million, a quarterly growth of 12 percent, and EBITDA at €4.6 million.
Meanwhile, First Time Depositors (FTD) reached an all-time high of 43,712, representing a 56 percent year-over-year rise and a 31 percent quarterly increase. Further increases in player in-take are anticipated, resulting in ‘further revenue growth moving forward,’ according to the company.
Brown commented: “The business and the team continue to work exceptionally hard to continue to deliver, and with a relentless dedication to improve the business, striving towards its future potential.
“We have a media business that is again starting to deliver exciting growth prospects and a global iGaming platform business that is beginning to scale forward. A strong start to the year, but this continues to be just the foundations of what is possible to achieve with this business over the coming years and what we as a group are targeting long term.”