GiG Reports Declining Revenue due to Swedish Market Regulations
Gaming Innovation Group (GiG) has announced somewhat unsatisfactory results regarding the performance of its B2C division, achieved namely as a consequence of regulation changes carried out in Sweden starting in January 2019. Much has been said about the alterations made in the area, and while some, like Play’n GO, seem to be enjoying the modifications, others have suffered, so to say.
The total group revenue went down by 13.1% to €32.4 million, compared to the last year’s €37.3 million. Similarly, the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) slid down from €4.3 million to €4.1 million. The negative performance is evidently owing to the shifts made in the Swedish market. Be that as it may, Robin Reed, CEO at GiG, remains optimistic.
It Is Really Not That Terrible
Being nonetheless satisfied by the achieved EBITDA, Reed stated, “It is a performance I am reasonably satisfied with in light of the loss of a major B2B customer which we announced in Q4-18, and the new regulation in Sweden which is impacting both our B2C and B2B revenues.”
Expecting re-stabilisation in the European market, the GiG representative declared that they had indeed anticipated this outcome, and certain cost control measures have already been taken. “We believe Sweden will stabilise over the course of the year and are looking forward to compete for market shares.”
Regarding the B2B numbers, they surged down from €15.3 million to just €14.2 million in a very short period of time. Therefore, the B2C marked an even greater failure going from €25.4 million to merely €20.2 million. However, there is some light in this tunnel, as the media services division sparked some success. The EBITDA hopped up to €5.2 million from only €4.4 million, which is how much they had earned in 2018.
Reed concluded, “Q1 was a tough quarter for the industry and for us, but we delivered in a challenging environment. Going into Q2, I believe we have navigated through the storm and are in good shape with plenty of opportunities.”
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