GiG gaming profits down as operator shifts focus to B2B
CEO says gaming arm will focus on lowering operational costs in coming quarters
Gaming Innovation Group (GiG) has reported a 20% year-on-year increase in revenues to €24.2m for its B2C arm, although EBITDA slipped 47.3% to €-2.8m on increased marking costs and unusual hot weather in Scandinavia.
Group revenues were up 39% on the previous year to €369m with B2B revenue growth up 83% to €15.6m.
The quarter was marked by a number of major B2B launches including an entirely new sports betting platform and a compliance tool to be rolled out to partnering operators in coming months.
The firm also signed a platform supply deal with Hard Rock Casino in New Jersey and is plotting further launches in the US.
CEO and founder of GiG, Robin Reed, this morning told investors the operator’s goal now was to increase revenues and reduce operational costs across its gaming brands.
A number of its brands were pulled out of various markets to focus on the operator’s core Nordic region.
Reed said the Guts brand had been overhauled and a new version would be launched shortly.
Elsewhere, SuperLenny’s gaming operations will be shut down and the site will become an affiliate site in the Nordics with players being migrated to partnering operators.
Thrills will be migrated onto Trustly’s Pay N Play system to enable GiG to compete with similar no-registration operators in the Swedish and Finnish markets.
“We’ve seen the success of no-account casinos throughout the industry in the last few quarters and we think we can do better than them,” Reed said.
The firm has applied for two Swedish licences for its Risk, Guts and Thrills brands, but Reed says he expects newly licensed operators to have difficulty operating in the newly licensed market among such high competition and tax rates.
GiG is also in the process of switching its stocks from the Oslo exchange to NASDAQ Stockholm.