The B2C divestiture reduces complexity and financial leverage, enabling complete focus on driving the inherent strategic opportunities in the core B2B platform and media, creating a foundation for sustainable earnings and growth. "It is a great honor to write my first shareholder letter to you after my appointment as CEO inNovember 2019 . The dynamics in the online gambling industry, both competitive and regulatory, have changed dramatically in the last two years and we as a company are forcefully adapting to that. We are coming out of a strategic review initiated in November last year, I am certain the actions taken will place the Company in a truly exciting position for growth while securing the sustainability of the Company's financial position by significantly reducing its debt and leverage", saysRichard Brown , CEO of GiG. Financial Highlights o Revenues in Q4 2019 ofEUR29.4m (39.9) o EBITDA in Q4 2019 wasEUR4.8m (5.0) with an EBITDA margin of 16.4% (12.6%) o Revenues for the B2C segment in Q4 2019 wereEUR19.0m (25.8), EBITDA wasEUR4.1m (0.8) with an EBITDA margin of 22% (3%) o Revenues for the B2B segment in Q4 2019 wereEUR12.1m (16.4), EBITDA wasEUR0.8m (4.3) o Revenues in theB2B Media Services wereEUR7.5m (8.7) in Q4 2019, EBITDA wasEUR4.0m (4.9) o Other operating expenses wereEUR13.7m (15.4) a reduction by 12%, the number of employees decreased from 706 to 648 year-on-year. Operational Highlights oRichard Brown appointed new CEO on6 November 2019 o Introduction of fixed fee platform payment model o GiG launchesHard Rock International's online sportsbook inIowa o GiG signed withMr Green inLatvia for platform services, casino and sportsbook o Renewal of contract with B2B partnerArmstrong Operations Ltd. incl two new brands, the signed on the platform with the new fixed fee payment model Events after Q4 o Divestment of the B2C vertical toBetsson Group o Introduction of GiG's next generation data platform, to be sold to existing customers and separately to external customers o Extension of contract with a current platform customer with the addition of two new brands on the fixed fee model o Revenues in January were 8% higher than the average in Q4 2019 Outlook and guidance o GiG will become one of few fully independent of B2C, B2B providers after divestment of the B2C segment which will give the Company dedicated focus on building the B2B business o Strategic review continues for its proprietary sportsbook; GiG is actively discussing joint ventures or other constellations with potential partners to release the true asset value of the sportsbook and to secure external long term funding o With the divestment of the B2C vertical, full year 2020 revenues are expected in the range ofEUR70 - 75 million, with an EBITDA expected in the range ofEUR14 - 17 million, including, for comparison, B2C as continued operations until completion of the transaction Investor presentation and webcast CEORichard Brown will present the Q4 results at09:00 CET at Redeye, Mäster Samuelsgatan 42, 10 fl,Stockholm, Sweden . The presentation will be given in English. GiG welcomes participants to join via the live webcast or in person. Below is the link for registration to the webcast, questions can be asked on the live page: https://www.redeye.se/live/gig-q4 If attending in person, please register via this link: https://www.lyyti.fi/reg/Gaming_Innovation_Group_Live_Q_0221 For further information, contact:Richard Brown , CEO of GiG, richard.brown@gig.com +34 661 599 025Tore Formo , Group CFO, tore@gig.com +47 916 68 678Petter Nylander , Chairman of GiG, petter.nylander@gig.com +46 76 525 09 55 This information is information thatGaming Innovation Group Inc. (GiG) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at08:00 CET on18 February 2020 . AboutGaming Innovation Group (GiG) Gaming Innovation Group Inc. is a technology company providing products and services throughout the entire value chain in the iGaming industry. Founded in 2012,Gaming Innovation Group's vision is 'To open up iGaming and make it fair and fun for all'. Through its ecosystem of products and services, it is connecting operators, suppliers and users, to create the best iGaming experiences in the world. GiG operates out ofMalta and is dual-listed on theOslo Stock Exchange under the ticker symbol GIG and on Nasdaq Stockholm under the ticker symbol GIGSEK. www.gig.com Legal disclaimerGaming Innovation Group Inc. gives forecasts. Certain statements in this report are forward-looking and the actual outcomes may be materially different. In addition to the factors discussed, other factors could have an impact on actual outcomes. Such factors include developments for customers, competitors, the impact of economic and market conditions, national and international legislation and regulations, fiscal regulations, the effectiveness of copyright for computer systems, technological developments, fluctuation in exchange rates, interest rates and political risks.
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