Revenue in the six months to 30 June was higher across both the GiG Media and Platform and Sportsbook segments. GiG Media performed well in particular, driven by all-time high publishing revenue.
Against this backdrop, preparations for splitting the business have continued to take place. GiG revealed plans to split Platform and Sportsbook from GiG Media after launching a strategic review. Each segment will run independently as publicly listed companies.
A few months later, Richard Brown announced he would step down as CEO of the group by the end of 2023. Earlier this week, former SBTech CEO Richard Carter was appointed to lead the Platform and Sportsbook division, ahead of it being spun out.
Speaking about the plans after GiG posted its Q2 results, Brown, who remains at the helm of the group, said he was pleased with progress made during the quarter. He added that, ahead of the split, the group will focus on growth and operational improvements in the second half.
“Progress towards the strategic review has moved well,” Brown said. “We believe operationally the group will be ready to execute the planned spin off by year end, targeting execution, dependent on market conditions, in the first half of 2024.
“We now look into the second half of the year with total focus on ensuring strong growth mechanics, continued operational improvement and long-term scalability for GiG.”
Widespread growth for GiG in Q2
Group revenue for the second quarter was 31.7% higher year-on-year, surpassing the record €28.4m set in Q1 this year.
Of this total, €21.7m came from the GiG Media segment, an increase of 46.6% and a record for the division. GiG said this was again helped by the addition of AskGamblers.com, which it acquired from Catena Media in January.
Publishing revenue climbed 58.0% to reach a record high, while paid revenue was also up 26%. Some 64% of revenue came from revenue share agreements, 10% cost per acquisition and 26% listing fees and other services.
First time depositors within the GiG Media business also climbed 38.0% to 109,400. This, GiG said, reflects technological and product initiatives from previous quarters, which led to greater search engine exposure, resulting in higher traffic volumes.
New launches drive up Platform and Sportsbook revenue
Turning to the Platform and Sportsbook segment and revenue here was 27.4% higher in Q2 at €9.3m.
GiG noted several key developments within the business during the quarter. These included new licences in Pennsylvania and Maryland and a new gambling software provider licence in Sweden. Elsewhere, Betsson’s Rizk brand went live in Germany in June.
Q2 also saw the launch and completion of the migration of all GiG legacy sportsbook clients to the Sportnco solution. GiG said this has led to material costs savings and an enhanced product.
GiG net profit hikes 318%
Looking at spending during Q2, operating costs climbed 15.8% to €19.1m. Depreciation and amortisation expenses were also higher, as was amortisation on acquired affiliates.
GiG noted €70,000 in financial income, meaning pre-tax profit hit €7.2m, a year-on-year rise of 176.9%.
The group noted a €149,000 loss from discontinued operations, but also received €24,000 in tax benefit and reported €20,000 in positive foreign currency exchange.
As a result, bottom line net profit for the quarter reached €7.1m, a 317.7% increase on last year. In addition, adjusted EBITDA jumped 68.7% to €14.0m.
Similar story in H1 as revenue rises 37%
In terms of GiG’s performance in the first half, revenue in the six months to 30 June was up 36.7% to €64.8m.
Operating costs jumped 10.5% to €34.8m, while after also including both depreciation and amortisation, as well as amortisation on acquired affiliates and financial costs, this left a pre-tax profit of €12.2m. GiG said this was 171.1% higher year-on-year.
The group paid €143,000 in tax, reported a €520,000 loss from discontinued operations and a negative €14,000 foreign currency exchange impact.
This resulted in a net profit of €11.5m, some 283.3% ahead of H1 of 2023, while adjusted EBITDA also jumped 71.3% to €25.7m.
“I truly believe there is a strong and clear path to continued success for the business units both operationally and strategically and we are fixated on achieving it,” Brown said.