Gaming Innovation Group sees revenue surge in Q2 2024
Gaming Innovation Group (GiG) has reported an increase in its financial results for the second quarter of 2024, largely driven by the strong performance of its media division, now rebranded as Gentoo Media.
Speaking with SiGMA News a few months ago, Jonas Warrer, CEO of Gentoo Media, expressed optimism about the future, emphasising that the rebrand is not just a change in name but a “genuine representation of the company’s ethos and vision.” Warrer highlighted that employees and partners must embrace this new identity to ensure continued success.
The division posted record revenues of €30.3 million, marking a 39 percent increase compared to the same period last year. This growth was fuelled by an 18 percent rise in organic revenue. Gentoo Media’s EBITDA increased by 43 percent to reach €14.8 million, resulting in an EBITDA margin of 48.7 percent.
Gentoo Media also reported an 11 percent year-on-year increase in first-time depositors (FTDs), totalling 121,900. The division’s success was further bolstered by strategic acquisitions, including AskGamblers and KaFe Rocks, which have continued to show strong growth since their integration. The recent acquisition of Casinomeister, an online casino advocacy and review platform, added to the division’s growing portfolio.
While GiG’s media arm thrived, the company’s Platform & Sportsbook division faced challenges, reporting a 21 percent decrease in revenue to €7.3 million. The division’s adjusted EBITDA was in the red, at negative €1.6 million, compared to €3.7 million in positive EBITDA during the same quarter last year. Despite this downturn, the Platform & Sportsbook division managed to sign two new agreements, two additional Heads of Terms, and extend one existing contract in Q2 2024. Moreover, four new brands went live during the quarter, with two more launching in early Q3, bringing the total number of active brands to 72.
Bolstering financial position and strategic acquisitions
To support its ongoing strategic initiatives and planned business split, GiG undertook a €9 million equity raise and a €15 million bond tap, strengthening its financial position. The company also finalised the acquisition of Titan Inc. Limited, a leading SEO and content service provider, for €3.2 million. This move is expected to enhance the operational efficiency of Gentoo Media by reducing SEO and content-related costs.
Upcoming business split and outlook
Moving forward, GiG remains focused on executing the planned split of its media and platform divisions. Subject to regulatory and shareholder approvals, this separation is expected to be completed by the end of September, with the Platform & Sportsbook division anticipated to begin independent trading on October 1, 2024. The decline in Platform & Sportsbook’s performance highlights the challenges ahead as GiG focuses on strategic growth through acquisitions and diversification. However, with the success of Gentoo Media and ongoing strategic moves, the company appears well-positioned for the future.
