Revenue in the six months to 30 June witnessed growth in both the GiG Media and Platform and Sportsbook segments. GiG Media saw a particularly strong performance, driven by record-high publishing revenue. As part of the company’s ongoing preparations to split the business, GiG plans to separate Platform and Sportsbook from GiG Media, with each segment operating independently as publicly listed companies.
Richard Brown, the CEO of the group, announced his intention to step down by the end of 2023. In his place, Richard Carter, the former CEO of SBTech, has been appointed to lead the Platform and Sportsbook division ahead of the spin-off. Brown expressed satisfaction with the progress made during the quarter and emphasized a focus on growth and operational improvements in the second half of the year.
In Q2, GiG experienced widespread growth, with group revenue increasing by 31.7% year-on-year, surpassing the previous record set in Q1. The GiG Media segment contributed €21.7m to this total, representing a 46.6% increase and a new divisional record. The addition of AskGamblers.com, acquired from Catena Media, played a significant role in driving this growth. Publishing revenue reached a record high, climbing by 58.0%, while paid revenue increased by 26%. The majority of revenue came from revenue share agreements, followed by cost per acquisition and listing fees and other services. Additionally, first-time depositors within the GiG Media business increased by 38.0% to 109,400, reflecting successful technological and product initiatives that improved search engine exposure and increased traffic volumes.
The Platform and Sportsbook segment also experienced growth, with revenue rising by 27.4% to €9.3m in Q2. Several key developments occurred during this period, including the acquisition of new licenses in Pennsylvania and Maryland, as well as a gambling software provider license in Sweden. Furthermore, Betsson’s Rizk brand went live in Germany, and all GiG legacy sportsbook clients were successfully migrated to the Sportnco solution, leading to significant cost savings and an enhanced product.
In terms of financial performance, operating costs in Q2 increased by 15.8% to €19.1m. Depreciation and amortization expenses, as well as amortization on acquired affiliates, were also higher. Despite these factors, pre-tax profit rose by 176.9% to €7.2m, with a net profit of €7.1m, representing a 317.7% increase compared to the previous year. Adjusted EBITDA also saw substantial growth, jumping by 68.7% to €14.0m.
Overall, for the first half of the year, revenue increased by 36.7% to €64.8m. Operating costs rose by 10.5% to €34.8m, resulting in a pre-tax profit of €12.2m, which was 171.1% higher year-on-year. The net profit reached €11.5m, showing a growth of 283.3% compared to H1 of 2023, while adjusted EBITDA rose by 71.3% to €25.7m.
Richard Brown expressed confidence in the future success of the business units, both operationally and strategically, and stressed the company’s determination to achieve it.
