GiG blames 16 Q2 revenue fall on tougher Swedish market
Revenue at Gaming Innovation Group (GiG) fell 16% year-on-year to €31m ($34.6m) for Q2, meaning total H1 revenue of €63.4m (down 15%) and a net loss of €9m, up 152%.
Adjusted EBITDA for Q2 was €2.5m, a 49% increase, and cash flow from operations was €3.2m, a 156% decrease.
GiG has attributed the drop in revenue to a difficult Swedish market and the termination of an unnamed customer contract in Q4 2018.
Robin Reed, CEO of GiG, said: "With the second quarter behind us, the outlook has improved. I am confident the recent strategic actions we have taken will lead to revenue growth and an improved bottom line in H2.
"It has been a quarter with some headwind, primarily due to a tougher Swedish market."
Revenues for GiG’s main source of income, B2C, fell to €19.6m in the period, a 19% decrease, while its B2B revenues also dropped to €13.1m, a 16% fall.
The supplier recently announced the sale of its B2C brand Highroller to Ellmount Gaming in a €7m deal, through which GiG is hoping to increase brand equity for online casino Rizk.
GiG’s share price dropped slightly to SEK 11.02 ($1.15) following its trading update.