Game innovation group praised the continued momentum in its major business units in the third quarter of the year, as the company looks to “work to accelerate to become a leading global supplier”.
However, the company again came up against German regulatory changes, which it said had a negative impact on sales to the tune of around € 900,000.
Despite this, GiG reaffirms that it expects the regulated market to be a good generator of value in the medium and long term.
The comments come as the group discloses its performance in the third quarter, with revenue up 20% year-on-year to 17 million euros (2020: 14.2 million euros).
Group platform services division revenue increased 6% year-on-year to 5.7 million euros (2020: 5.4 million euros), despite a decrease of 1 million euros in white label. Excluding discontinued white labels, revenue increased 32 percent year-on-year and 70 percent including the decline in Germany.
Media services achieved third consecutive revenue after closing the period up 30% to € 11.2 million (2020: € 8.6 million), despite normal seasonal effects as well as ‘a reduced sports calendar.
GiG’s sports betting services segment revenue fell to € 100,000 (2020: € 200,000), as GiG details its ambition to “grow gradually with existing and new partners over the long term”.
Third quarter gross margin increased 19.8% to 16.9 million euros (2020; 14.1 million euros), with EBITDA up 65% to close at 5.3 million euros (2020: 3.2 million euros).
“Business units continue to deliver exciting new products, customers and market launches as we consistently move towards our long-term ambitions of becoming a leading B2B supplier in the online gaming industry,” explained Richard Brown, CEO of GiG.
Adding: “During the quarter, the company continued to execute its execution strategy for long-term sustainable growth over the coming years, leveraging its diverse portfolio of operations and preparing for expansion into new markets, product development and operational performance that will enable the company to push towards new successes in the years to come.
“Cash flow is improving and with a stronger balance sheet compared to the same period last year, we are looking to act more forcefully on the opportunities that lie ahead.”
Revenues for the first nine months of the year closed at 48.6 million euros, or 27.8% ahead of the 38 million euros in 2020, with a gross margin and EBITDA as well. ahead after reaching 48.2 million euros (2020: 37.7 million euros) and 15.2 million euros. (2020: € 6.6m), respectively.
Looking ahead, GiG says it is “satisfied with the overall development and expects to continue to grow in the future”, revealing its previously highlighted ambitions to generate double-digit annual organic growth in sales and achieve an EBITDA margin above 40% by 2025.