Gaming Innovation Group reports Q3 2019
Gaming Innovation Group Inc. (GiG) reports Q3 2019 revenues of €30.2 million and an EBITDA of €2.7 million.
“For a while now the gaming industry has been in a bit of a storm, going through a period of structural change, not a structural decline. With increased regulation and taxation putting pressure on margins, it is time to adapt to the new reality in order to steer out of the epicentre.
I am confident that we are making the necessary strategic adjustments to ensure the full potential of Gaming Innovation Group and shareholder value creation.”, says Petter Nylander, Chairman of the Board of GiG.
- Revenues for Q3 2019 were €30.2m (37.3), mainly impacted by the Swedish market and the termination of a customer contract in Q4 -18 affecting YoY comparison by €4.5m and €2.7m respectively
- EBITDA was €2.7m (5.0)
- Revenues for the B2C segment in Q3 2019 were €20.2m (24.4), EBITDA reached an all-time-high of €2.4m (1.4) with an EBITDA margin of 12% (6%), driven by the Rizk brand, showing strong underlying performance in markets such as Central Europe and Nordics excluding Sweden
- Rizk represented 75% of B2C revenues in Gaming Operators with an EBITDA of €2.6m (2.1) with an EBITDA margin of 17.3% (14.6%)
- Revenues for the B2B segment in Q3 2019 were €11.9m (15.4), EBITDA was €0.3m (3.7)
- Other operating expenses were €13.7m (15.3) a reduction by 10%, the number of employees decreased from 709 to 656 during the quarter
- Cash flow from operations in Q3 2019 was €2.4m (0.4) and cash used in investing activities was €2.0m (2.6)
- The Board has today elected Richard Brown as GiG’s Chief Executive Officer. The Board decided to replace the previous CEO Robin Reed on 5 September, asking GiG’s, then, COO Richard Brown to assume the role as acting CEO
- In August, GiG launched a turnkey casino solution in New Zealand with its new long-term partner SkyCity Entertainment Group
- GiG extended its partnership with Hard Rock International supporting its market entry with sports betting in the US state of Iowa
- Highroller was divested to affiliate and operator Ellmount Gaming Ltd. for €7m The acquirer will become a B2B customer and continue to operate Highroller on GiG’s platform
- Strengthened cash flow by approximately €250K per month from November 2019 by halting investments in GiG’s proprietary game studio
- Initiated project to transfer technical infrastructure to hybrid model leading to an annualised cost saving of approximately €3.5m once fully migrated
- Granted online gambling licences in Spain and a Class II licence in Romania for affiliation services
- Live in India with the Rizk brand with plans for further expansion in new territories
The Board and the CEO have appointed strategic advisors to conduct a strategic review of the Company to identify value-creating opportunities, reduce complexity and improve efficiency within the business.
Investor presentation and webcast
CEO Richard Brown will present the Q3 results at 10:00 CET at Helio GT 30, Grev Turegatan 30, Stockholm. The presentation will be given in English and available live via webcast and via a telephone link. Questions can be asked via the weblink.
Link to the webcast:
Dial-in numbers for participation in the telephone conference:
United Kingdom: +443333009270
United States: +18335268382
For further information, contact:
Richard Brown, CEO of GiG, [email protected]
Petter Nylander, Chairman of GiG, [email protected] +46 76 525 09 55
Anna-Lena Åström, Head of IR & Corporate Communications
[email protected] +356 796 998 48
This information is information that Gaming Innovation Group Inc. (GiG) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 08:00 CET on 6 November 2019.
About Gaming Innovation Group (GiG)
Gaming Innovation Group Inc. is a technology company providing products and services throughout the entire value chain in the iGaming industry. Founded in 2012, Gaming Innovation Group’s vision is ‘To open up iGaming and make it fair and fun for all’. Through its ecosystem of products and services, it is connecting operators, suppliers and users, to create the best iGaming experiences in the world. GiG operates out of Malta and is dual-listed on the Oslo Stock Exchange under the ticker symbol GIG and on Nasdaq Stockholm under the ticker symbol GIGSEK. www.gig.com