Gaming Innovation Group (GIG) - Growing iGaming cash flow machine

Trading is indeed sluggish. More active on earnings report days, my own shares were already sold after the Q4 report.

Q1:

  • Flagship assets saw lukewarm 5% YoY growth, excl. casinotopsonline which is still in trouble
  • Headwind from strict Brazilian regulation, player pool there decreased by 90%
  • On the Paid side, experiments with weak profitability are being phased out, number of sites decreases to 70; Paid turned back to growth in March and continued growing in April-May
  • In the call, it was mentioned that 2m+ was lost from both Brazil and the Paid side shutdowns, it remained unclear whether it meant revenue or EBITDA
  • Focus on strong brand assets that Google gives more visibility to
  • Revenue share and value of deposits at a healthy level
  • Cost cuts, 8-10 MEUR savings expected
  • 2025 outlook: revenue flat and 40-45% EBITDA, growth concentrated in H2

Analysts’ updated 2025 forecasts:

ABG Carnegie Red Eye
Revenue 115 121 120
EBITDA 49 49 50
EBITDA % 42% 40% 42%
Fair value - 26 SEK 34 SEK

So, a small decrease in sales and EBITDA across the board. For 2026, analysts forecast 10-14% revenue and 12-25% EBITDA growth. We are dependent on management’s comments here.

With these forecasts, EV/EBITDA 2025 ~5.5, competitors Betco 9 and Gambling com 8.

Links to reports:
ABG
Carnegie
Red Eye

The IR Director and a board member made small purchases of 10k and 9k shares after the earnings report at 13-14 SEK.

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