GiG records Q3 growth after another record quarter for media revenue
The revenue figure reported by GiG, however, was adjusted to not include revenues and costs derived from an unnamed platform client. It did not name this client, but earlier this year it said it had terminated a deal with an unnamed European media group.
Media services were the biggest contributor to the revenue total, generating €11.2m – up from 2020’s €8.6m total and another record for the company. Platform services added €5.7m, while revenue from sports betting services was €100,000.
When the aforementioned platform deal was excluded, expenses for the quarter were €11.6m, up from the €10.9m registered in 2020. Operating expenses were €8.8m, with marketing expenses adding a further €2.8m.
As a result, earnings before interest, taxation, depreciation and amortisation (EBITDA) came to €5.3m, which is a 65.6% increase on 2020.
Depreciation and amortisation came to €3.5m, down 27.1% from last year, leaving earnings before interest and tax (EBIT) of €1.8m, following a €1.6m EBIT loss the year prior.
When including the unnamed client, Q3 revenue came to €21.9m – a 22.3% increase. Gross profit amounted to €20.6m – after accounting for €1.4m worth of sales costs – up from €17.0m last year.
After €14.5m operating expenses including those from the otherwise-excluded client, €3.5m worth of depreciation and amortisation, and €1.3m of combined tax, financial expenses and losses from discontinued operations, overall profit for the period totaled €1.4m. This was down from the €2.4m loss experienced in 2020.
The quarter saw GiG sign a platform agreement with PlayStar Casino in Pennsylvania, in addition to signing long term agreements which would facilitate expansion into European markets.
GiG chief executive Richard Brown said: “I am very pleased with the momentum we continued to demonstrate in the third quarter of 2021 across Gaming Innovation Group’s business units.
“During the quarter the company continued to build towards its execution strategy for long term sustainable growth over the coming years, leveraging its diverse portfolio of operations and to prepare for expansion into new markets, development of products and operational performance that will enable the company to push towards further success in the coming years.
“Cash flow is improving and with a stronger balance sheet compared to this time last year we look to act with greater force on the opportunities ahead of us.”