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Gaming Innovation Group

Gaming Innovation Group

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Casino and sports betting services

GIG is a young company that sells products to a large part of the online gambling value chain. 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 selling B2B services.

GIG’s opportunity within its B2B platform and affiliate business is to expand the operations by increasing the geographic footprint. Furthermore, there are M&A opportunities present in the affiliate segment.

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.

Financials

EURm 2021 2022e 2023e
Sales 67 91 110
Sales growth (%) 28 36,5 20,7
EBITDA 21 36 51
EBITDA margin (%) 31,1 39,3 46,2
EBIT adj 7 16 30
EBIT adj margin (%) 10,5 17,6 27,2
Pretax profit 0 12 25
EPS rep 0 0,08 0,18
EPS growth (%) 99,7 11480 145,6
EPS adj 0,05 0,17 0,27
DPS 0 0 0
EV/EBITDA (x) 10 7,4 4,9
EV/EBIT adj (x) 29,7 16,5 8,4
P/E (x) -2758 26,6 10,8
P/E adj (x) 36,3 11,7 7,3
EV/sales (x) 3,1 2,9 2,3
FCF yield (%) 2 5,7 10,8
Dividend yield (%) 0 0 0
Net IB debt/EBITDA 1,8 0,9 0,1
Lease adj. FCF yield (%) 0,7 4,4 9,4
Lease adj. ND/EBITDA 1,8 1,9 0,8
EURm 2021 2022e 2023e
Leasing payments -2 -3 -4
Sales 67 91 110
COGS -1 -1 -1
Gross profit 66 91 109
Other operating items -46 -55 -58
EBITDA 21 36 51
Depreciation on tangibles -2 -2 -4
Depreciation on intangibles -14 -12 -9
EBITA 11 25 41
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 7 16 30
Other financial items 0 0 0
Net financial items -7 -4 -5
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 0 12 25
Tax 1 -1 -3
Net profit 0 10 23
Minority interest 0 0 0
Net profit discontinued 0 -2 0
Net profit to shareholders 0 9 23
EPS 0 0,08 0,18
EPS Adj 0,05 0,17 0,27
Total extraordinary items after tax 0 0 0
Tax rate (%) -447,4 -9,7 -10
Gross margin (%) 99,3 99,3 99,3
EBITDA margin (%) 31,1 39,3 46,2
EBITA margin (%) 17 27,8 37,2
EBIT margin (%) 10,5 17,6 27,2
Pretax margin (%) -0,2 12,7 22,9
Net margin (%) 0,6 11,5 20,6
Growth rates Y/Y 2021 2022 2023
Sales growth (%) 28 36,5 20,7
EBITDA growth (%) 93 72,9 41,7
EBIT growth (%) 181 128,3 86,9
Net profit growth (%) 102,5 2502,7 116
EPS growth (%) 99,7 11480 145,6
Profitability 2021 2022 2023
ROE (%) -0,8 21,5 28,1
ROE Adj (%) 60,7 48,8 41,7
ROCE (%) -2,3 9,4 18,2
ROCE Adj(%) 6,2 19,9 26,6
ROIC (%) -59,3 19 26,7
ROIC Adj (%) -59,3 19 26,7
Adj earnings numbers 2021 2022 2023
EBITDA Adj 21 36 51
EBITDA Adj margin (%) 31,1 39,3 46,2
EBITA Adj 11 25 41
EBITA Adj margin (%) 17 27,8 37,2
EBIT Adj 7 16 30
EBIT Adj margin (%) 10,5 17,6 27,2
Pretax profit Adj 4 21 36
Net profit Adj 5 20 34
Net profit to shareholders Adj 5 20 34
Net Adj margin (%) 7,1 21,8 30,6
Depreciation and amortisation -9 -10 -10
Of which leasing depreciation -2 -3 -4
EO items 0 0 0
Impairment and PPA amortisation -4 -9 -11
EBITDA lease Adj 18 33 47
EBITDA lease Adj margin (%) 27,7 35,9 43
EURm 2021 2022e 2023e
EBITDA 21 36 51
Net financial items -7 -4 -5
Paid tax 1 -1 -3
Non-cash items 0 -2 0
Cash flow before change in WC 14 28 44
Change in WC -2 -1 -2
Operating cash flow 13 28 41
CAPEX tangible fixed assets -1 -1 -2
CAPEX intangible fixed assets -9 -13 -13
Acquisitions and disposals 0 0 0
Free cash flow 3 13 27
Dividend paid 0 0 0
Share issues and buybacks 0 25 0
Other non cash items 1 -87 4
Decrease in net IB debt 29 8 15
Balance Sheet (EURm) 2021 2022 2023
Goodwill 16 79 79
Indefinite intangible assets 0 0 0
Definite intangible assets 33 35 26
Tangible fixed assets 0 0 0
Other fixed assets 17 17 18
Fixed assets 62 149 142
Inventories 0 0 0
Receivables 18 26 29
Other current assets 0 0 0
Cash and liquid assets 9 19 45
Total assets 88 193 217
Shareholders equity 12 69 92
Minority 0 0 0
Total equity 12 69 92
Long-term debt 39 45 45
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 2 2 2
Other long-term liabilities 21 32 31
Short-term debt 4 4 4
Accounts payable 20 38 39
Other current liabilities 0 0 0
Total liabilities and equity 88 193 217
Net IB debt 37 32 6
Net IB debt excl. pension debt 37 32 6
Capital invested 49 103 99
Working capital -3 -12 -10
EV breakdown 2021 2022 2023
Market cap. diluted (m) 171 232 245
Net IB debt Adj 37 32 6
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 208 264 251
Capital efficiency (%) 2021 2022 2023
Total assets turnover (%) 73,9 64,9 53,7
Capital invested turnover (%) 112,8 138,5 149,6
Capital employed turnover (%) 125,5 185,2 230,4
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 36,1 32,9 28,9
Working capital / sales (%) -10,8 -8,4 -10,3
Financial risk and debt service 2021 2022 2023
Net debt / equity (%) 312,8 46,4 6
Net debt / market cap (%) 21,9 13,8 2,3
Equity ratio (%) 13,6 35,9 42,4
Net IB debt adj. / equity (%) 312,8 46,4 6
Current ratio (%) 95 100,9 164,6
EBITDA / net interest (%) 290,7 812,2 1059,4
Net IB debt / EBITDA (%) 179,8 89,6 10,9
Interest cover (%) -294,5 -540,8 -2912,6
Lease liability amortisation -2 -3 -4
Other intangible assets 32 59 55
Right-of-use asset 0 0 0
Total other fixed assets 13 11 9
Leasing liability 3 2 2
Total other long-term liabilities 9 35 35
Net IB debt excl. leasing 34 64 37
Net IB debt / EBITDA lease Adj (%) 184,8 194,4 78,3
EURm 2021 2022e 2023e
Shares outstanding adj. 94 116 123
Fully diluted shares Adj 94 116 123
EPS 0 0,08 0,18
Dividend per share Adj 0 0 0
EPS Adj 0,05 0,17 0,27
BVPS 0,13 0,6 0,75
BVPS Adj -0,38 -0,59 -0,34
Net IB debt / share 0,4 0,6 0,3
Share price 1,81 2 2
Market cap. (m) 171 232 245
Valuation 2021 2022 2023
P/E -2758 26,6 10,8
EV/sales 3,12 2,9 2,28
EV/EBITDA 10 7,4 4,9
EV/EBITA 18,4 10,4 6,1
EV/EBIT 29,7 16,5 8,4
Dividend yield (%) 0 0 0
FCF yield (%) 2 5,7 10,8
P/BVPS 14,35 3,35 2,67
P/BVPS Adj -4,74 -3,41 -5,87
P/E Adj 36,3 11,7 7,3
EV/EBITDA Adj 10 7,4 4,9
EV/EBITA Adj 18,4 10,4 6,1
EV/EBIT Adj 29,7 16,5 8,4
EV/cap. employed 3,6 2,2 1,8
Investment ratios 2021 2022 2023
Capex / sales 13,8 15,6 13,3
Capex / depreciation 128,9 193 229,2
Capex tangibles / tangible fixed assets 0 0 0
Capex intangibles / definite intangibles 27,2 22,5 23,7
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 0 0 0
Lease adj. FCF yield (%) 0,7 4,4 9,4

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Media

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

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Main shareholders - Gaming Innovation Group

Main shareholders Share capital % Voting shares % Verified
SkyCity Entertainment Group 11.0 % 11.0 % 28 Jun 2022
Andre Lavold 6.2 % 6.2 % 28 Jun 2022
Kjetil Myrlid Aasen 5.7 % 5.7 % 28 Jun 2022
Zbigniew Eugeniusz Juroszek With Companies 5.1 % 5.1 % 8 Jul 2022
Jesper Ribacka 4.7 % 4.7 % 31 Jul 2021
Henrik Persson Ekdahl 4.0 % 4.0 % 30 Apr 2022
Nordea Liv & Pension 4.0 % 4.0 % 28 Jun 2022
BNG Special Situations Fund 2.5 % 2.5 % 31 Dec 2021
Symmetry Invest A/S 2.4 % 2.4 % 30 Apr 2022
Hans Michael Hansen 2.1 % 2.1 % 30 Apr 2022
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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