Revenue for the three months through to 30 September amounted to €17.9m (£16.1m/$20.9m), up 77.2% from €10.1m in the same period last year.
GiG said that reported revenue for the quarter included the full profit and loss from white label client SkyCity, a subsidiary of New Zealand’s SkyCity Entertainment Group. However, SkyCity’s contribution was partly offset by related cost of sales and site overheads.
When revenue was adjusted for this impact, it amounted to €14.2m, representing a 42.0% year-on-year increase.
Platform services remained by far the main source of income for GiG in Q3, accounting for €9.1m of the Q3 total, an increase of 151.8% on the previous year.
A total of six new platform services deals were signed in Q3, with 10 having been agreed in total so far in 2020. Among those that signed up with GiG in the quarter included Tipwin, Casumo subsidiary Mill of Magic, Argentina’s Grupo Slots and Casino Win in Hungary.
However, GiG noted that when revenue for the division was adjusted for SkyCity, platform services’ contribution came to €5.4m, up 50.0% year-on-year.
Elsewhere, revenue from the media services (affiliate marketing) business increased 7.5% to €8.6m. GiG said the division benefitted from the easing of novel coronavirus (Covid-19) restrictions in core markets, as well as the resumption of sporting events.
Some 65% of revenue was derived from revenue share agreements in Q3, while 9% came from cost per acquisition; 25% listing fees, and 1% from other services.
GiG said its US-facing World Sports Network (WSN) site performed well, and also secured a license for West Virginia. Following the period end, GiG also received license to operate in Tennessee, meaning it is now present in nine US states.
Sports betting services revenue remained flat at €200,000. Its sportsbook is currently live in New Jersey and Iowa, while a strategic partnership with Genius Sports’ Betgenius will extend its reach into new states and other territories, including Latin America.
Looking at spending during the quarter and cost of sales rocketed 350.0% year-on-year to €900,000, while marketing expenses hiked 246.2% to €4.5m. Other operating expenses edged up 3.3% to €9.3m.
Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €3.2m, compared to a loss of €425,000 in Q3 2019. Depreciation and amortisation costs stood at €3.3m and amortisation of acquired affiliate assets €1.6m, which resulted in a €1.6m loss before interest and tax (LBIT).
When accounting for other spending, including financial expenses amounting to €1.2m, this left a €2.6m loss before tax, compared to €10.8m last year.
After paying €111,000 in tax, GiG posted a loss of €2.7m from continuing operations, compared to a profit of €2.5m last year.
However, when the impact of the divested B2C business – that GiG sold to Betsson in April – this left a loss for the period of €5.0m.
The B2C costs included in the prior year figures increased losses for Q3 2019 to €8.4m, suggesting it significantly cut losses.
After factoring in foreign exchange gains, GiG’s total comprehensive loss for Q3 2020 came to €4.2m, compared to an €8.5m loss last year.
“The regulation of the gambling industry is driving long term opportunity and success for us.” GiG chief executive Richard Brown said. “There might be a short-term impact as markets such as Germany transition into the regulations.
“However, GiG is confident that mid- to long-term the growth of new partners who move from retail into online, such as our recent signing Tipwin, because the local regulation of igaming and sports betting, will lead to growth that outstrips the current markets opportunity for GiG.”
Looking at performance over the nine months to 30 September, revenue was up 36.3% at €45.8m, beating the supplier’s total revenue for the 2019 calendar year, of €44.1m.
EBITDA was up 94.1% at €6.6m, while loss before interest and tax was €8.5m, more than half the €17.3m loss posted in the prior year.
Total comprehensive loss for the nine months was €13.7m, down from €17.6m in the first nine months of 2019.
“I am very proud of the efforts and dedication of the entire organisation over the last 12 months who have contributed so valuably towards such year over year growth in both revenues and EBITDA and we now look to set out the road to grow towards the next phases of the company’s growth,” Brown said.
“We continue to focus on the optimisation of the company towards a pure B2B organisation that is well positioned to continue to deliver results and growth.”