Gaming Innovation Group (GiG) released its Q1 2020 update, showing sales of $33.7 million ($35 million, 2019) and an EBITDA of $2.7 million ($4.4 million, 2019), marking a return to quarterly growth after four consecutive declining quarters.
B2B segment sales were $13.8 m ($15.4 m) in Q1 2020, while EBITDA was $1.4 m ($3.3 m) in Q120. Sports Betting Services sales in the first quarter of 2020 were $0.2 m ($0.3 m), with the EBITDA of $-1.8 m ($-1.9 m). The negative EBITDA is linked to technology and people investing in developing in-house sports betting facilities.
GIG used the report to update investors on the turnaround plan initiated for its Sports Betting Services, which, it said, would result in monthly savings of about $434,000 when completed and place it in a competitive position for growth and strategic partnerships.
The company noted: “The ambition is to gradually grow with existing and new long term partners, including the fast growing US market. GiG is one of the few B2B providers present with omni-channel online gambling services in multi-state jurisdictions in the US.” It added that the full effect of the cost reductions from the third quarter would be felt.
As part of the strategic review, GiG said it has been actively negotiating possible joint projects and “other constellations” with potential partners to reveal its sportsbook’s true asset value. “Due to interruption to the sportsbook market by Covid-19, these initiatives have been put on hold,” it advised.
“Management feel that the strategic positioning of the sportsbook in the US market where the product is live in two states, and a large emerging market 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 capitalise on.