Gaming Innovation Group Inc. (GIG) continue its progress and reports revenues up 193% from Q1 16 and up 7% from Q4 16. Marketing is key to expansion, and the company continued to invest in marketing in Q1, thus affecting EBITDA margins negatively. During the quarter, the company successfully raised SEK 400 million through a bond issue, securing funding for future acquisitions, primarily targeting affiliate networks.
“Results for the first quarter of 2017 reflect our focus on building business volumes. We invested extensively in marketing, acquired the largest affiliate to date, signed 7 new brands and contracts to the iGaming Cloud (iGC) platform and continued to develop the next generation online casino.
Our vision is to make the iGaming industry an open and connected eco-system for the benefit of all. The recent development and acquisitions contributes to the realization of this strategy”, says Robin Reed, CEO of GIG.
Financial highlights Q1 2017
- All time high revenues from Innovation Labs and the iGaming Cloud platform
- Operating revenues of EUR 23.1 million, up 7% from EUR 21.5 million in Q4 2016.
- EBITDA of EUR (0.4) million, down from EUR 3.9 million in Q4 2016
- B2C revenues of EUR 18.5 million, up 3% from EUR 17.9 million in Q4 2016
- B2B revenues of EUR 6.3 million, up 24% from EUR 5.1 million in Q4 2016
- Marketing expenses of EUR 11.1 million (48% of revenues) compared to EUR 7.0 million in Q4 (34% of revenues)
- Secured funding for future growth through a SEK 400 million bond issue
Operational highlights Q1 2017
- 28 external clients operating 41 brands signed to the iGaming Cloud platform, 4 new clients in Q1 17
- 28 brands live on the iGC-platform, up from 25 in Q4 16
- Largest affiliate acquisition to date for Innovation Labs
- Focus on core, regulated markets for the B2C brands
- Developing the next generation online casino – codenamed Brand X
- The company is well positioned for organic and acquired growth across all three major business areas
- Expect 2017 revenues of EUR 120 million (excluding revenues from acquired operations)
- Re-designing iGC platform architecture to support the scale of all operators in the industry
- Continued growth in referred FTD’s and revenues from Innovation Labs
- Marketing and new brand to secure growth and improve performance in B2C segment
Investor presentation and webcast: The company will present the Q1 2017 financial results on Tuesday 2 May 2017 at 10:00 am CET at Hotel Continental, Stortingsgaten 24-26, 0117 Oslo. CEO Robin Reed will present the company and the presentation will be transferred via webcast at https://www.gaminginnovationgroup.com/ir/join-webcast.
About GIG: Gaming Innovation Group Inc. is an emerging gambling solutions and interactive entertainment provider. The Company offers cutting-edge cloud-based services and B2B performance marketing, and owns B2C gambling operators offering games from the best-of-breed suppliers across the online sports betting and casino industry. Gaming Innovation Group operates out of Malta and is listed on the Oslo Stock Exchange under the ticker symbol "GIG".
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