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Gaming Innovation Group: Buy one at a discount, get one for free - SEB

GIG posted solid results in Q3 with the Media division reporting record highs in revenue and adj. EBITDA. The Platform division booked 20% organic growth y/y and adj. EBITDA margin of 34%. We reiterate our SOTP case with the Media division value above the current market cap. GIG announced the acquisition of KaFe Rocks which adds EUR 23m to sales and EUR 10.5m to adj. EBITDA for 2024E. We lift our SOTP-based mid-point equity value estimate to SEK 50 (47).

GIG posted solid results in Q3 with the Media division reporting record highs in revenue and adj. EBITDA. The Platform division booked 20% organic growth y/y and adj. EBITDA margin of 34%. We reiterate our SOTP case with the Media division value above the current market cap. GIG announced the acquisition of KaFe Rocks which adds EUR 23m to sales and EUR 10.5m to adj. EBITDA for 2024E. We lift our SOTP-based mid-point equity value estimate to SEK 50 (47).
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