Gaming Innovation : reports continued strong growth, revenues increased 202% in 2016

Gaming Innovation Group reports continued strong growth, revenues increased 202% in 2016

Gaming Innovation Group Inc. (GIG) continued the strong growth in Q4 2016. During 2016 the company has grown rapidly both through acquisitions and organic developments such as the successful launch of Rizk.com. Combined with a significant strengthening of the organization, GIG is set to continue the positive development into 2017 and beyond.

'In 2016 Gaming Innovation Group truly entered the iGaming scene. At the beginning of the year, three brands were live on the iGC-platform, while we had 25 brands operational by the end of December. Rizk.com has been one of the most successful iGaming launches in 2016 and we have completed several acquisitions. All this illustrates how the company has emerged during the year. In order to create a leading iGaming company, focus for 2017 will still be on building volumes', says Robin Reed, CEO of GIG.

Financial highlights Q4 2016

- Operating revenues of EUR 21.5 million, up 48% from EUR 14.5 million in Q3 2016.
- Ex. Betit growth of 18% Q/Q
- EBITDA of EUR 3.9 million, up from EUR 1.1 million in Q3 2016
- B2C revenues of EUR 17.9 million, up 58% from EUR 11.4 million in Q3 2016
- B2B revenues of EUR 5.1 million, up 17% from EUR 4.3 million in Q3 2016
- Marketing expenses amounted to EUR 7 million (34% of revenues) compared to EUR 5 million in Q3 (35% of revenues)

Financial highlights 2016

- Operating revenues of EUR 53.6 million, up 202% from EUR 17.8 million in 2015
- Ex. Betit growth of 145% Y/Y
- EBITDA of EUR 5.8 million, up from EUR -2.1 million in 2015
- Marketing expenses amounted to EUR 19 million (36% of revenues), compared to EUR 8 million (43% of revenues) in 2015

Operational highlights

- 24 external clients signed to iGaming Cloud (iGC) platform, exceeding 2016 target of 20
- Following Betit integration, 25 brands live on the iGC-platform
- All time high revenues for Innovation Labs
- RIZK outperforming expectations due to high player retention
- Strengthening of organisation, hiring top industry names to management

Outlook:

- Invest in active real money players to increase volume and future earnings
- Increased marketing costs in 2017
- Develop iGC-platform to sign larger and established clients
- See 2017 revenues above EUR 120 million

GIG considers using the Nordic bond market to finance future acquisitions, and will contemplate to arrange fixed income investor meetings.

Investor presentation and webcast:
A presentation will be held in connection with the financial results for Q4 2016 on Tuesday 14 February 2017. The presentation will take place at 10:00 am CET at Felix Konferanse-senter, Bryggetorget 3, 0125 Oslo. The presentation will be given by CEO Robin Reed and transferred via webcast at www.gaminginnovationgroup.com.

Attachment: See attached Q4 2016 interim report and financial presentation.

Published: 14.02.2017 08:09am