#Sweden #financial results #Stockholm #GiG Software #iGaming Technology

GiG Software's Q4 2024 Financial Results Overview

GiG Software Plc, a prominent player in the B2B iGaming technology sector, has released its financial results for the fourth quarter and the entire year ended December 31, 2024. The report reveals both challenges and significant growth potential, highlighting the company's readiness to address the ever-evolving digital gaming landscape.

Key Financial Highlights

The company experienced an underlying revenue growth of 44%, reaching revenues of €8.6 million in Q4 2024, excluding client exits and Enterprise revenue. Compared to Q4 2023, which reported €6.0 million, this growth showcases GiG's resilient business model. When compared to Q3 2024, revenues for Q4 increased by 19%, demonstrating robust quarter-on-quarter growth.

In the fourth quarter of 2024, the total revenue reached €8.8 million, albeit a slight decrease from €9.1 million in Q4 2023. Despite challenging market conditions, GiG reported a total revenue of €31.8 million for the year, down from €37.8 million in 2023. Factors contributing to the revenue decrease include a reduction in client contracts and revenue from the sale of the GiG Enterprise Solution.

Earnings and Expenses

Adjusted EBITDA for Q4 2024 stood at €0.1 million, a drop from €1.1 million in the same quarter of the previous year. The overall adjusted EBITDA for 2024 showed a loss of €3.0 million, compared to a profitable €11.1 million in 2023. Operating losses before intangible asset impairments amounted to €6.1 million, which is also higher than the loss of €3.8 million recorded in Q4 2023.

The company's operational expenses increased to €8.3 million in Q4 2024 from €7.8 million in Q4 2023, primarily driven by an expanded workforce and investments in software development and marketing.

Business Developments and Strategies

During the fourth quarter, GiG made strides in its commercial operations. It signed seven commercial agreements, including renewing a crucial partnership with Betsson and acquiring six new clients. A total annual contract value of €75 million was reported as of December 31, 2024, with €16 million already secured in long-term contracts.

Additionally, the launch of The Pools brand in the competitive UK market represents a significant achievement, utilizing GiG's esteemed platform and sportsbook capabilities. The company also identified growth opportunities in emerging markets, including the Philippines, Finland, Brazil, and France, emphasizing their strategic expansion agenda.

2025 Outlook and Predictions

Looking ahead, GiG plans to enhance its product suite further, including the launch of new features in their X Suite of products. This suite aims to facilitate faster market entries and better responses to industry demands. Analysts predict revenue guidance of €44 million for the full year of 2025 and adjusted EBITDA in excess of €10 million. Continued momentum is anticipated from already established partnerships, new product offerings, and market expansions.

In summary, while the financial data reflects past challenges, GiG Software Plc is charting a course for growth and innovation, reinforcing its position as a leading iGaming technology provider. The upcoming webinar on February 27, 2025, will provide insight into the company's strategies and answer investor queries regarding their ambitious growth agenda for 2025 and beyond.

For those looking to understand the company’s position in the context of a rapidly evolving digital landscape, GiG Software's commitment to innovation and robust market potential underscores its importance in the gaming technology sector. The significant developments and growth plans outlined in this report position GiG for a thriving future, balancing market demands with technological advancements.