GiG achieved record-breaking revenues of €31.1 million, representing a substantial 40 percent year-on-year (YoY) increase. Of this growth, 22 percent was organic.
CEO Richard Brown (pcitured above), said, “The second quarter of 2023 has proven another step forward for Gaming Innovation Group, with the business reaching another all-time high in revenues, increasing 40% year-over-year to over €31m”.
Building on the achievements of 2023, Brown said that the company is poised to maintain its momentum. Projections for the upcoming period indicate expected revenues within the range of €125 million to €130 million, with an adjusted EBITDA margin forecast spanning from 47 percent to 50 percent.
As previously communicated in the Q1 update, GIG has initiated a strategic review of its business operations. This evaluation aims to enhance profitability for shareholders and envisions a potential divestment of certain units. The execution of this split is envisaged for the first half of 2024, pending the approval from shareholders.
Brown elaborated on the ongoing strategic review, stating, “Progress in relation to the strategic review has been substantial, and we are confident that the group will be operationally prepared to implement the proposed spin-off by the conclusion of the current year. The execution timeline is contingent on prevailing market conditions and is aimed at materializing during the initial half of 2024.”
Brown referred to the company’s forward-looking approach and said, “Looking ahead to the latter half of the year, our unwavering focus remains on cultivating robust growth mechanisms, sustained operational enhancements, and the enduring scalability of GiG. I am firm in my conviction that a well-defined trajectory toward continued success exists for our business units, both operationally and strategically. Our unwavering commitment is directed toward its achievement.”
The financial projections and strategic initiatives mentioned above are based on current announcements. Actual outcomes may vary depending on market conditions.
The adjusted EBITDA for the quarter reached €14.0 million, indicating a remarkable 68 percent YoY increase. This improvement led to a heightened adjusted EBITDA margin of 45 percent, a new all-time high, and a significant stride towards our financial target of 50 percent.
The company’s EBIT reached €6.6 million, an impressive YoY increase of 173 percent. This was accompanied by an EBIT margin of 21.1 percent, a substantial growth from the previous year’s 10.8 percent..
GiG Media, a core division of the company, also performed exceptionally well, achieving record revenues of €21.7 million, a notable 47 percent YoY growth of which 20 percent was organic. The corresponding adjusted EBITDA stood at €10.3 million. The sportsbook segment displayed consistent organic growth, with revenues of €9.3 million, an increase of 27 percent. The adjusted EBITDA for this segment reached €3.7 million, and the adjusted EBITDA margin surged to 39.7 percent, compared to the previous year’s Q2 of 17.2 percent.
The profit before tax experienced a substantial YoY increase of 197 percent, reaching €6.6 million. The earnings per share also demonstrated growth, standing at €0.05 compared to the previous year’s €0.01. Moreover, the company maintained a positive cash flow from operations, reporting €9.1 million.
GiG achieved significant operational milestones during the quarter:
Following the Q2 period, GiG continued to make progress. The company highlighted the following milestones:
The positive trajectory of GiG’s performance in Q2 2023 outlines the company’s commitment to growth, operational excellence and long-term sustainability. With a strategic focus on enhancing growth mechanisms and ensuring scalability, GiG is poised to capitalize on emerging opportunities to continue to add value to stakeholders continue delivering value to stakeholders.
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