08/12/2020 | Press release | Distributed by Public on 08/12/2020 05:00
WED, AUG 12, 2020 13:00 CET Gaming Innovation Group Inc. issues a correction of the press release regarding the publication of the Company's Q2 report, which was published on 11 August 2020 at 08:05 CET. The correction relates to the absence of a MAR-label referring to the EU market abuse regulation in the press release and to page 16 of the Q2 report appended to the press release containing a misdated MAR-label. The corrected press release follows below. Gaming Innovation Group reports Q2 2020 Gaming Innovation Group Inc. (GiG) reports Q2 2020 revenues of €16.7 million and an EBITDA of €2.8 million. 'Q2 was a strong start for GiG as its first quarter as a B2B only company, and the signings after the quarter confirm further my confidence that the Company can continue to grow and flourish which will deliver shareholder value in the years to come.', says Richard Brown, CEO of GiG. Financial Highlights · Continued quarterly growth with revenues in Q2 2020 of €16.7m (11.3), 47% growth Y/Y and 49% Q/Q · EBITDA in Q2 2020 was €2.8m (1.5), 93% growth Y/Y and 382% Q/Q. EBITDA margin of 17.0% (13.0%) · Revenues in Media Services were €8.6m (8.6) in Q2 2020, EBITDA was €4.8m (4.7) with all time high for Paid · Revenues in Platform Services were €8.2m (4.2) in Q2 2020, EBITDA was €-0.9m (-1.1) · EBITDA for Sports Betting Services improved to €-0.9m (-1.5) due to reduction in operating expenses by 44% · Cash flow from operations in Q2 2020 was €10.1m (3.2) and cash used in investing activities was €1.5m (3.5). Operational Highlights · The B2C vertical was divested to Betsson effective on 16 April 2020, with Betsson as a new long term customer on Platform Services · Media Services continued its quarterly growth in both revenue and FTDs, up 5% and 22% respectively · SkyCity's successful online expansion in 2020 confirms GiG's ability to transition a land based casino to online · Signed long-term agreement with GS Technologies Limited for the provision of GiG's platform and front-end development to a new casino brand · The sales pipeline developed positively, however some of the final contract negotiations was delayed as land based operators came to terms with actions around COVID-19 · Cost savings initiatives are progressing according to plan, which is expected to further reduce operating expenses by year end 2020 · The number of employees decreased from 709 to 487 year-on-year · The SEK300 million bond was repaid on 22 April 2020. Events after Q2 · Signed three new long-term agreements for GiG's platform including sports and managed services, further agreements are expected to be signed before year end · The positive development continues after Q2, July revenues on adjusted basis were up 38% compared to same period last year · The revenue guiding for continued operations for 2020 are increased to between €52 - 57 million, with an EBITDA expected in the range of €12 - 15 million. Investor presentation and webcast CEO Richard Brown will present the Q2 2020 results via livestream at 10:00 CET. The presentation will be followed by a Q&A-session, and investors, analysts and journalists are welcome to participate. The presentation will be given in English. Link to the livestream: https://www.redeye.se/events/789011/gaming-innovation-group-live-q-report-and-qa -2 For further information, contact: Richard Brown, CEO of GiG, [email protected] +34 661 599 025 Tore Formo, Group CFO, [email protected] +47 916 68 678 This information is information that Gaming Innovation Group Inc. (GiG) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:05 CET on 11 August 2020. About Gaming Innovation Group (GiG) Gaming Innovation Group is a leading iGaming technology company, providing solutions, products and services to iGaming Operators. Founded in 2012, Gaming Innovation Group's vision is 'To be the industry leading platform and media provider delivering world class solutions to our iGaming partners and their customers. GiG's mission is to drive sustainable growth and profitability of our partners through product innovation, scalable technology and quality of service. Gaming Innovation Group operates out of Malta and is dual-listed on the Oslo Stock Exchange under the ticker symbol GIG and on Nasdaq Stockholm under the ticker symbol GIGSEK. www.gig.com Legal disclaimer Gaming Innovation Group Inc. gives forecasts. Certain statements in this report are forward-looking and the actual outcomes may be materially different. In addition to the factors discussed, other factors could have an impact on actual outcomes. Such factors include developments for customers, competitors, the impact of economic and market conditions, national and international legislation and regulations, fiscal regulations, the effectiveness of copyright for computer systems, technological developments, fluctuation in exchange rates, interest rates and political risks.