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Gaming Innovation Group

Gaming Innovation Group

Casino and sports betting services

GIG is a B2B iGaming and sports betting supplier consisting of two segments, platform and media. It sells marketing services to other gambling operators and sells its own software platform and sportsbook to other B2C operators, as well as land-based casinos, enabling them to offer casino and sports betting services. GIG’s footprint is in Western Europe, but it also has US exposure through its sales of B2B services. The recent acquisition of SportnCo was transformative, contributing to a strong turnkey platform offering.

We see regulatory risks (the firm could face litigation if it fails to comply with local laws and practices in the regions where it operates) and counterparty risk (it faces many counterparties and some customers on the B2B side are smaller firms with low levels of solidity). Although the SEK 450 million bond has been refinanced with more favourable terms and matures in 2024, this still means that there are some financial risks involved.

EURm 2022 2023e 2024e
Sales 90 128 143
Sales growth (%) 34,9 41,7 11,6
EBITDA 33 58 71
EBITDA margin (%) 36,5 45,8 49,7
EBIT adj. 14 33 44
EBIT adj. margin (%) 15,3 26 30,7
Pretax profit 8 24 36
EPS 0,03 0,15 0,23
EPS growth (%) -515,9 411,8 56,4
EPS adj. 0,1 0,26 0,33
DPS 0 0 0
EV/EBITDA (x) 10,7 6,4 4,7
EV/EBIT adj. (x) 25,5 11,3 7,7
P/E (x) 81,9 16 10,2
P/E adj. (x) 24,6 9,4 7,4
EV/sales (x) 3,91 2,93 2,36
FCF yield (%) -5,8 4 9,1
Le. adj. FCF yld. (%) -7,3 4 9,1
Dividend yield (%) 0 0 0
Net IB debt/EBITDA (x) 2,2 1,1 0,4
Le. adj. ND/EBITDA (x) 2,1 1 0,3
EURm 2022 2023e 2024e
Sales 90 128 143
COGS -1 -2 -2
Gross profit 89 126 140
Other operating items -56 -67 -69
EBITDA 33 58 71
Depreciation and amortisation -12 -14 -14
of which leasing depreciation -3 -2 -2
EBITA 21 44 57
EO Items -2 -2 0
Impairment and PPA amortisation -9 -13 -13
EBIT 12 31 44
Net financial items -4 -7 -8
Pretax profit 8 24 36
Tax -2 -2 -4
Net profit 6 21 32
Minority interest 0 0 0
Net profit discontinued -3 -2 -2
Net profit to shareholders 3 19 30
EPS 0,03 0,15 0,23
EPS adj. 0,1 0,26 0,33
Total extraordinary items after tax -1 -2 0
Leasing payments -3 -2 -2
Tax rate (%) 25,4 10 10
Gross margin (%) 99 98,5 98,5
EBITDA margin (%) 36,5 45,8 49,7
EBITA margin (%) 23,5 34,8 40
EBIT margin (%) 13,5 24,4 30,7
Pre-tax margin (%) 9 18,6 25,2
Net margin (%) 6,7 16,8 22,7
Sales growth (%) 34,9 41,7 11,6
EBITDA growth (%) 63,1 77,7 21,3
EBITA growth (%) 97,3 109,6 28,3
EBIT growth (%) 88,9 N/A 40,3
Net profit growth (%) -3184,7 254,1 51,1
EPS growth (%) -515,9 411,8 56,4
Profitability N/A N/A N/A
ROE (%) 8,9 24,3 27,6
ROE adj. (%) 35,8 43 39,6
ROCE (%) 11,4 13,6 17,5
ROCE adj. (%) 14,3 22,3 24
ROIC (%) 17,1 27,1 33,1
ROIC adj. (%) 18,4 28,3 33,1
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 35 60 71
EBITDA adj. margin (%) 38,4 47,3 49,7
EBITDA lease adj. 32 59 69
EBITDA lease adj. margin (%) 35,5 46,1 48,7
EBITA adj. 23 46 57
EBITA adj. margin (%) 25,4 36,3 40
EBIT adj. 14 33 44
EBIT adj. margin (%) 15,3 26 30,7
Pretax profit Adj. 19 39 49
Net profit Adj. 16 36 46
Net profit to shareholders adj. 14 34 44
Net adj. margin (%) 18,2 28,5 32
EURm 2022 2023e 2024e
EBITDA 33 58 71
Goodwill 75 120 120
Net financial items -4 -7 -8
Other intangible assets 61 48 39
Paid tax -2 -2 -4
Tangible fixed assets 0 0 0
Non-cash items 9 -2 -2
Right-of-use asset 0 0 0
Cash flow before change in WC 35 47 57
Total other fixed assets 10 8 6
Change in working capital -4 -2 -3
Fixed assets 147 176 165
Operating cash flow 32 44 54
Inventories 0 0 0
Capex tangible fixed assets 0 -1 -1
Receivables 23 31 35
Capex intangible fixed assets -16 -11 -16
Other current assets 0 0 0
Acquisitions and Disposals -32 -20 -10
Cash and liquid assets 15 39 62
Free cash flow -16 12 28
Total assets 185 246 262
Dividend paid 0 0 0
Shareholders equity 65 95 125
Share issues and buybacks 25 11 0
Minority 0 0 0
Leasing liability amortisation -4 0 0
Total equity 65 95 125
Other non-cash items -40 -25 10
Long-term debt 70 90 74
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 3 3 3
Total other long-term liabilities 11 21 21
Short-term debt 13 10 10
Accounts payable 23 28 29
Other current liabilities 0 0 0
Total liabilities and equity 185 246 262
Net IB debt 71 64 26
Net IB debt excl. pension debt 71 64 26
Net IB debt excl. leasing 68 61 23
Capital employed 151 198 212
Capital invested 136 159 151
Working capital 1 3 6
Market cap. diluted (m) 281 310 310
Net IB debt adj. 71 64 26
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity N/A N/A N/A
EV 353 374 336
Total assets turnover (%) 66,1 59,2 56,1
Working capital/sales (%) -1,2 1,5 3,3
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 109,5 67,3 20,5
Net debt / market cap (%) 25,6 21,7 8,7
Equity ratio (%) 35,1 38,5 47,8
Net IB debt adj. / equity (%) 109,5 67,3 20,5
Current ratio 1,09 1,86 2,51
EBITDA/net interest 8,2 7,9 9,1
Net IB debt/EBITDA (x) 2,2 1,1 0,4
Net IB debt/EBITDA lease adj. (x) 2,1 1 0,3
Interest coverage 3,4 N/A N/A
EURm 2022 2023e 2024e
Shares outstanding adj. 116 123 123
Diluted shares adj. 118 130 130
EPS 0,03 0,15 0,23
Dividend per share 0 0 0
EPS adj. 0,1 0,26 0,33
BVPS 0,55 0,73 0,97
BVPS adj. -0,61 -0,57 -0,26
Net IB debt/share 0,61 0,49 0,2
Share price 26,7 26,7 26,7
Market cap. (m) 278 294 294
P/E (x) 81,9 16 10,2
EV/sales (x) 3,91 2,93 2,36
EV/EBITDA (x) 10,7 6,4 4,7
EV/EBITA (x) 16,6 8,4 5,9
EV/EBIT (x) 29,1 12 7,7
Dividend yield (%) 0 0 0
FCF yield (%) -5,8 4 9,1
Le. adj. FCF yld. (%) -7,3 4 9,1
P/BVPS (x) 4,33 3,27 2,48
P/BVPS adj. (x) -3,9 -4,01 -8,61
P/E adj. (x) 24,6 9,4 7,4
EV/EBITDA adj. (x) 10,2 6,2 4,7
EV/EBITA adj. (x) 15,4 8,1 5,9
EV/EBIT adj. (x) 25,5 11,3 7,7
EV/CE (x) 2,3 1,9 1,6
Investment ratios N/A N/A N/A
Capex/sales (%) 17,7 9,3 11,4
Capex/depreciation 1,8 0,9 1,3
Capex tangibles / tangible fixed assets N/A N/A N/A
Capex intangibles / definite intangibles 25,7 23,7 39,8
Depreciation on intang / def. intang 14 25 30
Depreciation on tangibles / tangibles N/A N/A N/A

Equity research

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Media

Gaming Innovation Group - Company presentation with Board Member Hessi Mocca
Gaming Innovation Group - Company presentation with Head of IR Hessi Mocca

Main shareholders - Gaming Innovation Group

Main shareholders Share capital % Voting shares % Verified
SkyCity Entertainment Group 10.6 % 10.6 % 27 Jan 2023
Zbigniew Eugeniusz Juroszek With Companies 6.1 % 6.1 % 27 Jan 2023
Kjetil Myrlid Aasen 5.6 % 5.6 % 27 Jan 2023
Andre Lavold 5.0 % 5.0 % 8 Mar 2023
Jesper Ribacka 3.9 % 3.9 % 31 Dec 2022
Henrik Persson Ekdahl 3.3 % 3.3 % 27 Jan 2023
Symmetry Invest A/S 3.1 % 3.1 % 27 Jan 2023
Avanza Pension 2.3 % 2.3 % 24 Feb 2023
G.F. Invest AS 2.1 % 2.1 % 24 Feb 2023
Riskornet AB 2.1 % 2.1 % 27 Jan 2023
Source: Holdings by Modular Finance AB

Insider list - Gaming Innovation Group

Name Quantity Code Date
Nicolas Adlercreutz + 7 500 BUY 18 Aug 2021
Petter Nylander + 21 800 BUY 23 Feb 2021
Henrik Persson Ekdahl -4 869 325 SELL 22 Dec 2020
Petter Nylander + 36 500 BUY 22 Dec 2020
Henrik Persson Ekdahl -4 896 125 SELL 22 Dec 2020
True Value Ltd +4 869 325 BUY 22 Dec 2020
Henrik Persson Ekdahl + 200 000 BUY 20 Feb 2020
Henrik Persson Ekdahl + 55 000 BUY 5 Sep 2019
Henrik Persson Ekdahl + 91 743 BUY 14 Aug 2019

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