GiG maintains global plans despite difficult H1

Gaming Innovation Group (GiG) is targeting expansion across regulated and soon to be regulated markets, as Swedish troubles and a customer contract termination impacted H1 revenues.

Publishing its first interim results as a Stockholm-listed enterprise, GiG records H1 2019 group revenues of €63 million, down 14 per cent on corresponding H1 2018’s €74 million.

GiG governance cites Swedish regulated market adjustments and the loss of a B2B contract during Q4 2018 trading as the main contributing factors for the firm’s period revenue declines.

The Swedish adjustments combined with increased betting duties see GiG report a lower period operating margins across its B2C (business-to-consumer) and B2B (business-to-business) assets, as group H1 2019 gross profits decline to €50 million (H1 2018: €61 million).

However, the company states that investments are being made to also pursue expansion in strategic target markets which it believes demonstrate high potential, such as Spain, Latin America, Canada and certain Asian regions, throughout 2019 and 2020.

“Our global expansion will be driving sequential growth in both B2C and B2B in H2 and we will manage that growth with a strong focus on execution as the Company is heavily focused on improving earnings per share,” explained Gaming Innovation Group CEO Robin Reed.

GiG also continues its strategy to focus on its flagship B2C brands. Recently, the company has decided to sell it’s B2C brand Highroller to online gaming operator Ellmount Gaming Ltd. in a €7 million deal paid in monthly instalments over the contract period of 48 months starting seven months after the announcement of the deal.

After this divestment, the gambling group will run four iGaming brands – Rizk, Guts, Kaboo, and Thrills, with Rizk being its best performing one. In the first half of 2019, Rizk represented 71 per cent of GiG’s B2C revenue. The second-largest brand, Guts, is being further developed as sports betting brand.