Gaming Innovation Group (GiG) has reported a successful third quarter, marked by an increase in group-wide revenue and a resumption of merger and acquisition (M&A) activity. GiG also reaffirmed its intention to enhance its presence in the US market and expand its position in the iGaming industry, focusing on two core business areas: Media and Platform and Sportsbook.
During the third quarter of 2023, the company achieved an all-time high group-wide revenue of $33.95 million (€31.8 million), reflecting a year-on-year increase of 39% compared to the same period in 2022, when the revenue was $24.45 million (€22.9 million).
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also experienced a substantial rise, reaching $14.52 million (€13.6 million) for the third quarter of 2023, a 61% increase compared to the $9 million (€8.5 million) reported in the corresponding quarter of 2022.
During Q3, GiG posted solid performances in both of its business segments. GiG Media saw its revenue surge by 49% to a record $24.02 million (€22.5 million), while EBITDA for this segment increased by 35% to $11.10 million (€10.4 million).
Platform and Sportsbook reported revenue growth of 20% to $9.93 million (€9.3 million), all organic, with an impressive EBITDA increase of 47% to $3.42 million (€3.2 million).
Petter Nylander, Chairman of GiG, stated: “The third quarter of 2023 has proven to be another period of growth and achievement.” He emphasized the company’s commitment to becoming a world leader in the iGaming industry.
Operational highlights during the quarter included geographic expansion, with GiG entering new markets such as Serbia, Portugal, and the US state of Maryland through deals with Betsson’s Rizk, GoldenPark, and Crab Sports, respectively. Additionally, agreements were signed with Mooir eGaming and Bplay.
The acquisition of AskGamblers from Catena Media in December 2022 was a significant contributor to GiG’s strong performance in the third quarter of 2023, with the unit’s revenue rising by 45%.
Leadership appointments were made during the quarter, with Jonas Warrer taking on the role of acting CEO, and Richard Carter assuming the position of CEO for the Platform and Sportsbook segment.
Richard Carter
The most significant post-quarter development for GiG was the resumption of M&A activity, with the announcement of the acquisition of KaFe Rocks, a casino media and affiliate company.
The $37.37 million (€35 million) acquisition aims to solidify GiG’s position in the US market, leveraging the Time2play.com and USCasinos.com brands. KaFe Rocks operates in over 15 markets and has demonstrated substantial revenue growth over the past year.
GiG expects KaFe Rocks to generate revenue of at least $24.56 million (€23 million) in 2024), with an EBITDA margin exceeding 45%. This acquisition is projected to diversify GiG Media’s business, enhancing the customer experience, website, market concentration, and reducing overall risk.
Jonas Warrer, CEO of GiG
Jonas Warrer, CEO of GiG, said: “We want to remain the leading casino affiliate in the industry and grow in the North American market. Our acquisition of KaFe Rocks validates these goals. After the successful integration of AskGamblers, we have been looking for the next splendid candidate to join the family.
“In KaFe Rocks, we’ve found a flourishing business led by an exceptionally skilled team. Their reputable affiliate assets will undoubtedly drive growth for the broader group. I eagerly await working closely with the KaFe Rocks team.”
The acquisition of KaFe Rocks is structured as a Share Purchase Agreement and is expected to be completed in December 2023, subject to regulatory approvals and other closing conditions.
