Yet Another Record-Breaking €19.1m Revenue For GiG
Despite challenges facing the iGaming sector with regard to greater political scrutiny and regulations, some innovative companies are finding ways to remain dynamic and face the headwinds with a sense of positivity for the future. The Gaming Innovation Group’s (GiG) media division results in the first financial quarter of 2022 were incredibly impressive, with revenue coming in at a whopping EUR 19.1 million. However, it is the platform arm of the company that’s worth keeping a watchful eye on as it’s predicted to see transformational results in the coming year.
GiG’s media arm experienced a phenomenal 40 percent year-on-year increase in revenue in the first three months, with player intake reaching a 69,800 over this period thanks to the company’s increased media spend on paid campaigns which accounted for a massive 160 percent of this new player intake.
Seeing the potential in emerging markets
According to GiG’s Chief Executive Officer, Richard Brown, the company has been expanding operations into several new markets. To do this effectively, Brown explained that GiG spends between 12 to 18 months analyzing the market in order to establish what the optimum return on investment would be before ramping up their market spending.
With regard to the growth of GiG’s media division, the company’s success in Latin America, as well as Central and Eastern Europe, revenue has increased drastically. While Brown cited Brazil as a particularly good example of a market that GiG had successfully penetrated, he stressed that each market had its nuances that needed to be accounted for despite universal lessons that could be applied across different territories.
Evidently, the continent of Africa is being seen as an ever-evolving market with immense potential for profitability when it comes to anything related to online gambling – from sports betting to the all-time favorite, popular online slot games. Indeed, if you’re based in this jurisdiction, you can find an array of different providers at GamblingAfrica, where you can find many reputable and licensed operators. All you have to do is filter out your options depending on the country of residence as well as games’ preferences.
The impact of GiG’s acquisition of Sportnco
In early April, GiG closed the acquisition deal on Sportnco, the impact of which has been cited as having a significant impact on GiG’s platform arm. However, this development also contributed to the growth of the company’s media division too.
Brown attributed much of GiG’s success in the Latin American market to the Sportnco acquisition, which allowed them to strengthen their foothold in that region by accelerating their activities to take advantage of the market opportunities available.
Beyond the immediate benefit from the addition of Sportnco to GiG’s business portfolio, which accounted for EUR 2.4 million in the first quarter of 2021, the company expects resistance caused by their Dutch withdrawal to ease as cooling-off periods end, which in turn will allow GiG to relaunch operations in that market.
Looking to the future
The future looks bright for GiG. In addition to establishing its strategic position within emerging markets like Africa and Latin America, GiG continues to forge ahead in established markets too. For instance, the company recently announced a deal with a tier-one UK casino operator that is looking to expand into the online casino market via GiG’s omnichannel solution.
Despite the potential challenges the gambling industry as a whole face in the UK with reference to the government’s Gambling Act review whitepaper, the fact that GiG has made bold moves in terms of expanding its capabilities across multiple territories means that the company will be well-positioned when it comes to weathering this storm.
