Gaming Innovation Group achieved all-time high revenue of €31.8m in Q3, an increase of 39 per cent year-on-year, and has revealed a €35m deal to acquire affiliate KaFe Rocks.
Record GiG Media revenues of €22.5m, up by 49 per cent, helped steer the growth.
“The third quarter of 2023 has proven to be another period of growth and achievement”, said Petter Nylander, chairman of GiG.
Revenues for GiG’s Platform and Sportsbook were €9.3m, rising by 20 per cent year-on-year, while the group reported positive cash flow from operations of €3.2m.
Adjusted EBITDA reached €23.4m and excluding a €9.8m reversal of earn-out provision, EBITDA was €13.6m, an increase of 61 per cent year-on-year, with an EBITDA margin of 42.8 per cent.
GiG to acquire KaFe Rocks
GiG has also announced it is to acquire affiliate KaFe Rocks as it aims to cement its lead generation efforts. The purchase price is €35m consisting of a €15m up-front cash payment and €20m in four semi-annual payments over 24 months.
There will also be an added earn-out given specific performance targets are met.
The move will also push GiG Media further into the North American market.
KaFe Rocks operates across more than 15 markets with brands including Time2Play and USCasinos.
GiG Media aims to drive substantial growth for the acquired KaFe Rocks assets and the group said it anticipates KaFe Rocks will generate minimum 2024 revenue of €23m with an EBITDA margin above 45 per cent.
GiG added that it expects its GiG revenues of between €125m and €135m for 2024.
Jonas Warrer, CEO of GiG, said: “We want to remain the leading casino affiliate in the industry and grow in the North American market. Our acquisition of KaFe Rocks validates these goals.
“After the successful integration of AskGamblers, we have been looking for the next splendid candidate to join the family. In KaFe Rocks, we've found a flourishing business led by an exceptionally skilled team. Their reputable affiliate assets will undoubtedly drive growth for the broader group. I eagerly await working closely with the KaFe Rocks team.”
Aimee Speight, a spokesperson for KaFe Rocks, added the affiliate was “persuaded” to go with GiG Media despite “several buyers” being considered because of the “strong performance the company has shown over the last few years.”
The transaction is expected to complete in December after regulatory approvals and final board approval as well as due diligence checks and financing.
