The Gaming Innovation Group (GiG) released its financial results for the second quarter of 2024, showing a 39% increase in revenue year-over-year in its media division, now operating under the name Gentoo Media. GiG plans to split the company into two, distributing the platform & sportsbook segment to its shareholders in 2024.
The division's revenues reached €30.3 million (US$33.8 million), driven by an organic growth of 18%. Gentoo Media's EBITDA also increased by 43%, reaching €14.8 million, with an EBITDA margin of 48.7%.
Despite this growth in the media division, the platform & sportsbook segment of GiG faced challenges, with revenues falling 21%, to €7.3 million.
The adjusted EBITDA of the segment recorded a significant decline, with a loss of €1.6 million, compared to a positive value of €3.7 million in the same period last year.
However, the platform & sportsbook division managed to sign two new deals, secure two additional terms of intent, and extend a contract during the quarter.
Furthermore, four new brands were launched during the second quarter, with two more at the beginning of the third quarter, bringing the total number of active brands to 72.
During the quarter, GiG also completed a €9 million equity raise and a €15 million bond issue, measures aimed at strengthening its financial position ahead of the planned business segments split.
The split, which will see the platform & sportsbook segment begin to operate independently, is scheduled to occur on October 1, 2024, pending regulatory and shareholder approvals.
This month, GiG finalized the acquisition of Titan, a provider of SEO and content services, for €3.2 million. The acquisition, announced in mid-June 2024, is expected to significantly enhance the operational efficiency of Gentoo Media, significantly reducing SEO and content costs.
The company's previous acquisitions, including the integration of AskGamblers and KaFe Rocks, as well as the recent acquisition of Casinomeister, have contributed to the performance of Gentoo Media.
However, the decline in the platform & sportsbook segment highlights the challenges GiG faces as it prepares for the imminent business division and continues to seek growth through strategic acquisitions.
Highlights
- The media division recorded record revenues of €30.3 million, an increase of 39% year-over-year (18% organic growth)
- EBITDA increased by 43%, reaching €14.8 million, with an EBITDA margin of 48.7% (47.4%)
- EBIT reached €7.8 million, with a margin of 25.8% (32.3%)
- Cash and balance sheet strengthened by a €9 million equity raise and a €15 million bond issue
- GiG Media renamed to Gentoo Media
- FTDs (First Time Depositors) for Gentoo Media were 121,900 (109,400), an 11% year-over-year increase in the second quarter of 2023
- AskGamblers and KaFe Rocks show strong growth following acquisition
- Strategic acquisition of Casinomeister, an online casino advocacy and review platform
- Signed Terms of Intent to acquire Titan Inc. Limited, a provider of SEO and content services, significantly improving the operational efficiency of Gentoo Media
- Revenues from the platform & sportsbook were €7.3 million (9.3), a decrease of 21%, with an adjusted EBITDA of €-1.6 million (3.7)
- Platform & sportsbook signed two new deals, two additional Terms of Intent, and a contract extension in the second quarter of 2024
- Four additional brands were launched in the quarter, two so far in the third quarter of 2024, and the number of active brands is 72 to date
- Subject to remaining regulatory and shareholder approvals, the division is to be executed by the end of September, with the first day of trading for the platform & sportsbook scheduled for October 1, 2024.
The Gaming Innovation Group (GiG) is a leading iGaming technology company that provides solutions, products, and services to iGaming operators. Founded in 2012, GiG's vision is to be the "leading platform, sportsbook, and media provider in the industry, delivering world-class solutions to our iGaming partners and their customers".
GiG's mission is to drive sustainable growth and profitability for its partners through product innovation, scalable technology, and quality of service. The company operates from Malta and is listed on two stock exchanges: the Oslo Stock Exchange under the symbol GIG and the Nasdaq Stockholm under the symbol GIGSEK.
Source: GMB
