Gaming Innovation Group Inc. (GiG) reports Q2 2020 revenues of €16.7 million and an EBITDA of €2.8 million.

“Q2 was a strong start for GiG as its first quarter as a B2B only company, and the signings after the quarter confirm further my confidence that the Company can continue to grow and flourish which will deliver shareholder value in the years to come.”, says Richard Brown, CEO of GiG.

Financial Highlights

• Continued quarterly growth with revenues in Q2 2020 of €16.7m (11.3), 47% growth Y/Y and 49% Q/Q
• EBITDA in Q2 2020 was €2.8m (1.5), 93% growth Y/Y and 382% Q/Q. EBITDA margin of 17.0% (13.0%)
• Revenues in Media Services were €8.6m (8.6) in Q2 2020, EBITDA was €4.8m (4.7) with all time high for Paid
• Revenues in Platform Services were €8.2m (4.2) in Q2 2020, EBITDA was €-0.9m (-1.1)
• EBITDA for Sports Betting Services improved to €-0.9m (-1.5) due to reduction in operating expenses by 44%
• Cash flow from operations in Q2 2020 was €10.1m (3.2) and cash used in investing activities was €1.5m (3.5).

Operational Highlights

• The B2C vertical was divested to Betsson effective on 16 April 2020, with Betsson as a new long term customer on Platform Services
• Media Services continued its quarterly growth in both revenue and FTDs, up 5% and 22% respectively
• SkyCity’s successful online expansion in 2020 confirms GiG’s ability to transition a land based casino to online
• Signed long-term agreement with GS Technologies Limited for the provision of GiG’s platform and front-end development to a new casino brand
• The sales pipeline developed positively, however some of the final contract negotiations was delayed as land based operators came to terms with actions around Covid-19
• Cost savings initiatives are progressing according to plan, which is expected to further reduce operating expenses by year end 2020
• The number of employees decreased from 709 to 487 year-on-year
• The SEK300 million bond was repaid on 22 April 2020.

Events after Q2

• Signed three new long-term agreements for GiG’s platform including sports and managed services, further agreements are expected to be signed before year end
• The positive development continues after Q2, July revenues on adjusted basis were up 38% compared to same period last year
• The revenue guiding for continued operations for 2020 are increased to between €52 – 57 million, with an EBITDA expected in the range of €12 – 15 million.

Investor presentation and webcast

CEO Richard Brown will present the Q2 2020 results via livestream at 10:00 CET. The presentation will be followed by a Q&A-session, and investors, analysts and journalists are welcome to participate. The presentation will be given in English.