"GiG returns to topline growth as a group for the first time in five quarters, and many of the actions we have taken in Q4 & Q1 will enable further cost savings, optimization of the organisation and performance that will be a leaver to improved earnings in the second part of the year", says
Financial Highlights
· Return to quarterly growth after four consecutive quarters with decline
· Revenues in Q1 2020 of €31.1m (32.4)
· EBITDA in Q1 2020 was €2.5m (4.1) with an EBITDA margin of 8.1% (12.7%)
· Revenues for the B2B segment in Q1 2020 were €12.7m (14.2), EBITDA was €1.3m (3.0)
· Revenues in Media Services were €8.2m (9.1) in Q1 2020, EBITDA was €4.5m (5.2)
· Other operating expenses were €12.9m (13.3), the number of employees decreased from 695 to 594 year-on-year
· Cash flow from operations in Q1 2020 was €8.1m (4.4) and cash used in investing activities was €3.0m (4.2)
· Revenues for the B2C segment in Q1 2020 were €20.0m (20.2), EBITDA was €1.2m (1.1) with an EBITDA margin of 6% (5%)
Operational Highlights
· Media Services return to quarterly growth in both revenue and FTDs after three quarters of decline
· Strategic review initiated in
· Launched MegaLotto onto the platform expanding GiG footprint across iGaming product verticals to include lottery - one of the largest markets in the industry
· Extended the contract with a current platform customer with the addition of two new brands on the new fixed fee model.
· The sales pipeline is developing positively, however has slowed some of the final contract negotiations as land based operators come to terms with actions around COVID-19
· Other cost savings initiatives are progressing according to plan, which is expected to reduce operating expenses and the headcount to approximately 430 by year end 2020
Events after Q1
· The B2C vertical was divested to
· Revenues from Platform Services in April were 35% higher than Q1-20 average and 40% higher than
· Sportsbook restructuring initiated, which will lead to around €400k in monthly savings in Sports Betting Services when completed, and place it in a sustainable position for growth and strategic partnerships
Outlook and guidance
· GiG will become one of few fully independent B2B providers after the divestment of the B2C segment - will give the Company dedicated focus on building the B2B business
· Platform Services revenues and profitability will benefit from the increased traction several brands on the platform are experiencing from Q2 and onwards
· GiG will continue its focus on cost control, execution and global expansion and multitude of actions taken in Q4 and Q1 will positively impact bottom line in the latter part of 2020, especially for Sports Betting Services
· Guiding for full year 2020 remains, revenues are expected in the range of €70 - 75 million, with an EBITDA expected in the range of €14 - 17 million (including, for comparison, B2C as continued operations until completion of the transaction)
Investor presentation and webcast
CEO
Link to the livestream: https://www.redeye.se/live/gig-live-q-5-maj
For further information, contact:
About
Legal disclaimer
https://news.cision.com/gaming-innovation-group/r/gaming-innovation-group-reports-q1-2020,c3104002
https://mb.cision.com/Public/15972/3104002/b6b78cf1684c1ae8.pdf
https://mb.cision.com/Public/15972/3104002/a337011ffda5f17f.pdf
(c) 2020 Cision. All rights reserved., source