Gaming Innovation Group, an online gambling technology operator and provider, is currently employing damage control measures after a bleak Q3 that saw its shares earnings dropped by almost 50 per cent.
This past Wednesday, the company reported revenues worth €30.2 million for the three months ending last September 30th, which is a decrease of 19 per cent compared to the same period in 2018. Earnings went down 46 per cent to reach €2.7 million. The company has also registered a loss worth €8.35 million in Q3 compared to €2.6 million around the same period in 2018.
GiG’s returns are off by 19 per cent reaching €93.6 million, while net loss tripled reaching €17.35 million even after its operation costs went down by one-fifth.
Although B2B revenues for GiG were down by more than 17.2 per cent reaching €20.2 million in its Q3, consumer-facing returns were highest this quarter at about €2.4 million as the leading gaming brand, Rizk gaming, performed incredibly well in all regions except Sweden.
Its B2B media service registered a revenue drop of 4.7 per cent at €8.0 million, while its earnings stagnated at €4.2 million. Again Sweden contributed significantly to this loss, with a B2B loss of 23 per cent.
B2B services fell by 50 per cent to about €3.6 million after a major customer terminated services last year, which translated to a gross loss of €2.1 million compared to €1.7 million in the same period in 2018. The sports betting division of GiG has remained a minnow. Revenues are flat at about €200000 and a net earnings loss of €8.1 million in Q3.
Investors have disappeared following this dismal performance, causing their stocks to plummet by more than a fifth down to SEK6.41 as of Wednesday’s close of trading.
The company’s chairman, Petter Nylander, admitted that the entire industry is in some pickle currently, but pointed out that this is a period where there has been a lot of structural change. He also pointed out that it is high time that GiG adapted to the reality to get out of the current mess.
To steer the company in the right direction, the company has engaged advisors whose job will be to carry out strategic reviews of operations then identify value-oriented opportunities, reduce or eliminate complexities and also help the business operate with efficiency.
The company has started to encourage efficiency by closing down its proprietary gaming studio last September. This move will trim down the company’s expenses by close to €250000 begin November.
Additionally, the company has stated that Richard Brown is now its official CEO after the Ouster of Robin Reed. It not clear whether he is still interested in the Job.