Gaming Innovation Group (GiG) said a 35.6% year-on-year increase in revenue during the first half of its 2021 financial year led to it posting €1.7m (£1.5m/$2.0m) in profit for the period.
Revenue for the six months to 30 June amounted to €37.7m, up from €27.8m in the first half of 2020 when, like many other businesses in the gambling sector, GiG was impacted by the novel coronavirus (Covid-19) pandemic.
However, as GiG operates online, it was able to avoid major disruption, though cancellations and postponements of sports events last year did hit its sports betting business.
GiG noted €1.8m in sales costs and €26.0m in operating costs, which left €9.8m in earnings before interest, tax, depreciation and amortisation (EBITDA), up 188.2% year-on-year.
After including €4.3m in depreciation and amortisation costs and €2.1m in expenses related to the amortisation of acquired affiliate assets, earnings before interest and tax (EBIT) was €3.4m, compared to a €6.9m loss at the same point in 2020.
GiG reported €3.3m in finance costs and €354,000 unrealised exchange gains on bond, this left a pre-tax profit of €467,000, up from a €9.6m loss last year.
The business benefitted from €1.8m in tax income during the half and after also accounting for a €113,00 loss from its discontinued operations and €86,000 in income from exchange differences on translation of foreign operations, this left a comprehensive profit of €1.7m, compared to a €9.4m loss in 2020.
Turning to the second quarter, revenue in the three months to 30 June amounted to €19.4m, up 16.2% year-on-year, helped by record a revenue performance by its media services affiliate business.
GiG reported €995,000 in sales expenses and €13.1m in operating costs, which resulted in earnings before interest, tax, depreciaton and amortisation (EBITDA) of €5.3m, up 89.3% year-on-year. After depreciation and amortisation costs and expenses related to the amortisation of acquired affiliate assets, EBIT stood at €2.1m, up from a €2.2m loss last year.
Financial costs reached €1.7m, while GiG also saw a €438,000 unrealised exchange loss on bond and €136,000 in other expenses, leaving a pre-tax loss of €223,000, an improvement on the €5.2m loss in 2020.
GiG paid €188,000 in tax and after including a €46,000 loss from discontinued operations and a €43,000 loss on exchange differences on translation of foreign operations, this left a €500,000 comprehensive loss for the quarter, compared to a €5.5m loss last year.
“The second quarter of 2021 has proved another success, our clear path for growth is being demonstrated and increasing capacity and strength in our offering across the business units continues to evolve positively,” GiG chief executive Richard Brown said.
“It is 12 months since GiG became a pure B2B offering and to deliver strong revenue growth combined with increasing EBITDA margin to deliver an 86% increase in EBITDA to €5.3m is a result we are proud of.
“Another rewarding quarter for GiG, with meaningful growth for the group in revenues, EBITDA and EBIT as well as underlying business dynamics/ KPIs, but also meaningful progress towards our business growth and expansion strategies, improving delivery and future position of the group.”
