Gaming Innovation Group (GiG) has been making waves in the iGaming industry, achieving record-breaking revenues for the second consecutive quarter. This remarkable growth is attributed to the stellar performance of its media arm, which witnessed a substantial 40% year-on-year increase in revenue during the first quarter of the year. Let’s explore the key factors driving GiG’s success and the strategic moves that position the company for future growth.
Media Arm’s Phenomenal Performance:
GiG’s media division has been a standout performer, with a remarkable 40% year-on-year surge in revenue, reaching €14.1 million for Q1. A significant contributor to this success has been the affiliate business, which experienced a record-breaking player intake of 69,800 for the same period. Additionally, GiG saw a substantial 160% year-over-year increase in intake from its paid campaigns.
Strategic Market Expansion:
GiG’s growth strategy involves launching, analyzing, and optimizing operations in various markets. This meticulous approach allows them to determine the optimal return on investment before scaling up marketing spend. While there has been a slight dip in player intake from its publishing arm, this is part of a deliberate effort to focus on players with higher lifetime values.
Latin America and Beyond:
The media division’s expansion has been particularly pronounced in Latin America, Central, and Eastern Europe. Brazil, in particular, has shown remarkable performance, highlighting the value of brand-dominated keywords and preferred payment methods among higher-value customers. GiG’s media division is not only thriving in new markets but also taking market share in regions with lower growth rates, such as Europe.
Cross-Division Collaboration:
The recent acquisition of Sportnco, completed in April, has not only impacted GiG’s platform arm but also influenced the media division’s strategy. Sportnco’s success in Latin America has prompted GiG to accelerate its efforts in this region. Knowledge-sharing between the divisions is proving invaluable as they explore new opportunities in existing and emerging markets.
Platform Division Performance:
While the platform division saw a revenue dip due to client withdrawals from the Netherlands in late 2021 and Hard Rock migrating from the platform, a closer look at the rolling twelve-month revenue for software as a service (SaaS) and related revenue paints a more positive picture. This underlying business has grown from €11.9 million to €15.9 million over the last 12 months, reflecting the addition of new clients and markets.
Future Growth Prospects:
GiG’s acquisition of Sportnco and its integration are key priorities. The company aims to complete this process in the third quarter of the year. As cooling-off periods end, clients may consider re-entering the Dutch market, potentially easing the impact of past client withdrawals.
Strategic Partnerships:
GiG has announced a partnership with Angolan operator Full Game SA, providing a sportsbook and player account management solution. This partnership highlights GiG’s cultural fit with its partners and its commitment to making the combination a success. It also positions GiG strategically in the growing Angolan market.
Entering Tier-One Markets:
GiG is set to power a tier-one UK casino operator online, similar to its successful partnership with New Zealand’s SkyCity. This venture allows GiG to leverage its omnichannel solution in a larger market, potentially making a significant impact.
GiG’s journey in the iGaming industry is characterized by strategic expansion, strong performance, and cross-division collaboration. With a focus on high-value customers and a presence in emerging markets like Latin America, GiG is poised for continued growth. The company’s success in established markets, such as the UK, demonstrates its ability to adapt and thrive. As GiG navigates regulatory changes and explores new opportunities, it remains a dynamic force in the iGaming landscape.