In Q1’22, we expect normalised revenue and EBITDA of EUR 19.1m and 6.4m, respectively, corresponding to top-line growth of 21% y-o-y and an EBITDA margin of 33%. The trading update for the start of the quarter showed sales growth of 20% compared to the same period last year (+24% adj. for terminated white labels), and we expect continued solid growth for the remainder of the quarter driven by the media segment (+45% y-o-y), while we expect the platform business to slow slightly y-o-y given the migration of Hard Rock in Q4’21. Finally, please note that we have changed our P&L structure starting from 2020, adapting to the company’s normalised reported revenues.
SportnCo acquisition is set to generate synergies
Just as Q1 ended, the acquisition of SportnCo was completed, adding an essential piece to GiG’s platform segment. As we mentioned in conjunction with the acquisition announcement, there are several synergies we look forward to seeing, e.g., 1) market access can now be utilised from both sides, e.g., SportnCo doesn’t have to apply for a new license to enter a market where GiG is already present, and vice versa; 2) Cross-selling to current clients; and 3) improved offering to win new clients with a strong sportsbook, which we assess was the missing piece prior to the acquisition. In total, GiG expects operational cost savings of EUR 2-3m during the first two years, and EUR 3-4m in market access synergies.
US starting to become significant
The company’s presence in the US market is seemingly starting to ramp up, with Media Services business in 19 states. With US tailwinds such as the launch of New York, GiG’s Media business could see a decent upswing in the coming quarters. However, we also note that GiG has a high share of rev-share accounts and hybrid deals (95% of NDCs in 20 ...
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