River iGaming cuts operational staff in Malta in B2B pivot
Malta-based operator initiates cost-cutting exercise across B2C division leading to redundancies
River iGaming has made double-digit operational redundancies in Malta after choosing to focus on its B2B business following a strategic review.
The operator last week let 12 people go with two weeks of redundancy pay across its customer support, CRM and payment functions, EGR Intel understands.
In today’s Q3 update, River iGaming CEO Kent Staahle said the operator had “initiated and partially completed significant cost cuts” to help put the B2B business in “harvest mode”.
Staahle said: “The market related to the company’s B2C brands has been very challenging, and the B2C business has performed significantly below communicated expectations, which is affecting the overall performance of the group in H2 2019.
“Based on this development, River has completed a strategic review of its business and decided to focus the company’s resources on becoming a SaaS-driven B2B company.
“In addition, the board and management are currently working on different initiatives for optimising the balance sheet in order to lay the financial foundation to best capitalise on the B2B opportunity, and thus maximise value for all stakeholders,” he added.
River iGaming will now focus on its UK, MGA and Sweden-licensed operations as it seeks to reduce the number of B2C gaming brands in its portfolio.
VegasCasino, which launched in April 2019, is likely to remain as the operator’s primary B2C product.
River iGaming has recruited Akur Capital as advisors to assess strategic alternatives to the B2C business, while Wikborg Rein will serve as legal advisors.
The operator’s B2B business was boosted by the acquisition of Bear Group from Gaming Realms in February, including the Grizzly technology platform. The first B2B client signed up in September.
Proforma net gaming revenue for Q3 2019 reached €3.8m, while gross profit amounted to €1.6m.