GiG completes €75.0m senior secured bonds issue
The three-year issuance will be split between two tranches: €45.0m and SEK350.0m. GiG also noted a combined borrowing limit of €100.0m equivalent related to the bond issue.
GiG said net proceeds from the bond will be used to call the existing SEK500.0m bond in full, including the call premium. Funds will also be used to partly finance the acquisition of KaFe Rocks and for general corporate purposes.
An application will be made for the new bond to list on Nasdaq Stockholm and Frankfurt Stock Exchange Open Market. ABG Sundal Collier and Pareto Securities acted as joint managers and bookrunners in connection with placement of the bond issue.
“The transaction was well received among investors across the Nordics, continental Europe and the US, with participation in the placement from existing as well as new investors,” GiG said.
GiG further extends reached with KaFe Rocks acquisition
The group last month announced that it had struck a deal to purchase affiliate KaFe Rocks for €35.0m. This followed the purchase of AskGamblers.com in January.
GiG will be acquiring all KaFe Rocks’ brands including Time2play.com and USCasino.com. In June, the affiliate rebranded as Time2Play Media but remains under the KaFe Rocks name.
On agreeing the deal, GiG said it will accelerate its market presence in the “valuable” North American market. The group also expects the acquisition to further diversify the business as well as improve customer, website and market concentration and reduce overall risk.
Subsequently, GiG said the investment will have an effect on GiG Media revenues. This is set to reach between €125m and €135m in 2024.
Media growth drives record revenue in Q3
On the subject of GiG Media, it was growth within this business that pushed revenue to a record €31.8m at GiG in Q3.
Growth was evident across both the Media and Platform and Sportsbook arms. However, it was the former where GiG reported the most success, with GiG Media revenue rising 49.0% to €22.5m.
For the Media segment, GiG said it is continuing to focus on referring players on revenue share agreements. This, it added, allows it to secure further recurring revenue streams for the segment.
As for other stand-out figures in Q3, net profit rocketed 2,168.2% to €8.8m, while EBITDA was 187.2% higher at €23.1m.
GiG’s commercial director, David Bonnefous, recently spoke with iGB about the group’s ongoing growth plans. This includes its success in the US as the brand shifts focus towards emerging markets.