Gaming Innovation Group (GiG) has announced its financial results for the second quarter of 2024, showing a 39% year-over-year increase in revenue for its media division, currently operating under the name Gentoo Media.
The division's revenue reached 30.3 million euros (33.8 million USD), benefiting from 18% organic growth. Gentoo Media's EBITDA also grew by 43%, reaching 14.8 million euros, with an EBITDA margin of 48.7%.
Despite the growth in the media division, GiG's platform and sports betting divisions continue to face challenges, with revenue falling 21% to 7.3 million euros.
The adjusted EBITDA for this division significantly decreased, showing a loss of 1.6 million euros, compared to a loss of 3.7 million euros in the same period last year.
However, the platform and sports betting divisions did manage to sign two new agreements, secure two additional term outlines, and extend one contract during this quarter.
Additionally, four new brands were launched in the second quarter, with two more at the beginning of the third quarter, bringing the total number of brands to 72.
This quarter, GiG also completed a 9 million euro equity financing and a 15 million euro bond issue, measures aimed at strengthening its financial position before the planned spin-off of its business divisions.
This spin-off will allow the platform and sports betting divisions to start trading independently, expected to take place on October 1, 2024, pending regulatory and shareholder approval.
This month, GiG completed the acquisition of SEO and content service provider Titan for 3.2 million euros. Announced in mid-June 2024, this acquisition is expected to significantly reduce SEO and content costs, thereby improving the operational efficiency of Gentoo Media.
The company's previous acquisitions, including the integration of AskGamblers and KaFe Rocks, as well as the recent acquisition of Casinomeister, have all contributed to the performance of Gentoo Media.
However, the decline in the platform and sports betting divisions highlights the challenges GiG faces in preparing for the upcoming business spin-off and continuing growth through strategic acquisitions.
