Gaming Innovation Group (GiG) recorded revenue of €17.0m (£14.5m/$19.7m) for the third quarter of 2021, an increase of 19.7% over at the same time last year.
Revenue reported by GiG, however, has been adjusted to not include revenue and costs from an unnamed platform client. He did not name that client, but earlier this year he said he ended a deal with an unnamed European media group.
Media Services was the largest contributor to total revenue, generating €11.2 million, compared to €8.6 million in 2020 and another record for the company. Platform services added €5.7 million, while sports betting services revenue reached €100,000.
When the aforementioned platform agreement was excluded, expenses for the quarter were €11.6 million, compared to €10.9 million recorded in 2020. Operating expenses were 8, €8 million, with marketing expenses adding another €2.8 million.
As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to €5.3m, an increase of 65.6% compared to 2020.
Depreciations amounted to 3.5 million euros, down 27.1% compared to last year, leaving a profit before interest and tax (EBIT) of 1.8 million euros, after a loss of EBIT of 1.6 million euros the previous year.
Including the anonymous customer, third-quarter revenue amounted to €21.9 million, an increase of 22.3%. Gross margin amounted to €20.6 million – after taking into account €1.4 million in selling costs – compared to €17.0 million last year.
After €14.5 million in operating expenses including those of the customer otherwise excluded, €3.5 million in depreciation and amortization and €1.3 million in combined taxes, financial expenses and losses from discontinued operations, the result total for the period amounted to €1.4 million. This is down from the €2.4 million loss suffered in 2020.
The quarter saw GiG signs platform deal with PlayStar Casino in Pennsylvaniain addition to signing long-term agreements that would facilitate expansion into European markets.
GiG Chief Executive Richard Brown said, “I am very pleased with the momentum we continued to demonstrate in Q3 2021 across all business units of Gaming Innovation Group.
“During the quarter, the company continued to develop its execution strategy for long-term sustainable growth in the years ahead, leveraging its diverse portfolio of operations and preparing for expansion into new markets, product development and operational performance that will enable the company to push towards new successes in the years to come.
“Cash flow is improving and with a stronger balance sheet compared to the same period last year, we are looking to act more forcefully on the opportunities presented to us.”