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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.

Sustainability Information

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 2023 2024e 2025e
Sales 127 166 190
Sales growth (%) 40,8 31,2 14,3
EBITDA 52 62 79
EBITDA margin (%) 41,2 37,5 41,5
EBIT adj. 27 35 51
EBIT adj. margin (%) 21,1 20,8 26,6
Pretax profit 11 23 40
EPS 0,02 0,16 0,28
EPS growth (%) -19,3 670,4 71,1
EPS adj. 0,1 0,26 0,38
DPS 0 0 0
EV/EBITDA (x) 8,1 6,8 5,1
EV/EBIT adj. (x) 15,9 12,3 7,9
P/E (x) 125,5 16,3 9,5
P/E adj. (x) 27,7 10 7
EV/sales (x) 3,35 2,56 2,1
FCF yield (%) -5,1 1,6 2,3
Le. adj. FCF yld. (%) -6,4 1,4 2,3
Dividend yield (%) 0 0 0
Net IB debt/EBITDA (x) 1,6 1,3 0,7
Le. adj. ND/EBITDA (x) 1,5 1,2 0,6
EURm 2023 2024e 2025e
Sales 127 166 190
COGS -1 -3 -3
Gross profit 126 164 187
Other operating items -73 -101 -108
EBITDA 52 62 79
Depreciation and amortisation -14 -16 -17
of which leasing depreciation -2 -2 -2
EBITA 38 46 62
EO Items -1 -1 -1
Impairment and PPA amortisation -13 -13 -13
EBIT 26 33 49
Net financial items -14 -10 -10
Pretax profit 11 23 40
Tax -4 -1 -3
Net profit 8 22 37
Minority interest 0 0 0
Net profit discontinued -5 -1 -1
Net profit to shareholders 3 21 36
EPS 0,02 0,16 0,28
EPS adj. 0,1 0,26 0,38
Total extraordinary items after tax -1 -1 -1
Leasing payments -2 -2 -2
Tax rate (%) 31,1 5,9 7
Gross margin (%) 99,1 98,3 98,3
EBITDA margin (%) 41,2 37,5 41,5
EBITA margin (%) 30,2 27,6 32,6
EBIT margin (%) 20,2 19,9 25,9
Pre-tax margin (%) 8,9 14 20,9
Net margin (%) 6,2 13,1 19,4
Year N/A N/A N/A
Sales growth (%) 40,8 31,2 14,3
EBITDA growth (%) 61 19,4 26,5
EBITA growth (%) 84,3 19,9 35
EBIT growth (%) N/A 29,8 48,5
Net profit growth (%) 37,6 180,2 69,2
EPS growth (%) -19,3 670,4 71,1
Profitability N/A N/A N/A
ROE (%) 3,5 20,6 27,5
ROE adj. (%) 20,7 34,3 38,2
ROCE (%) 7,4 12,6 19,3
ROCE adj. (%) 15,6 18,4 26,2
ROIC (%) 17 23,5 28,9
ROIC adj. (%) 17,5 24,2 29,6
Adj. earnings numbers N/A N/A N/A
EBITDA adj. 54 64 80
EBITDA adj. margin (%) 42,2 38,4 42,3
EBITDA lease adj. 51 61 78
EBITDA lease adj. margin (%) 40,4 36,9 41
EBITA adj. 40 47 64
EBITA adj. margin (%) 31,2 28,5 33,4
EBIT adj. 27 35 51
EBIT adj. margin (%) 21,1 20,8 26,6
Pretax profit Adj. 25 37 54
Net profit Adj. 21 36 51
Net profit to shareholders adj. 16 35 50
Net adj. margin (%) 16,9 21,6 26,9
EURm 2023 2024e 2025e
EBITDA 52 62 79
Goodwill 41 41 41
Net financial items -14 -10 -10
Other intangible assets 63 59 57
Paid tax -2 -2 -3
Tangible fixed assets 131 128 128
Non-cash items -21 10 -1
Right-of-use asset 0 0 0
Total other fixed assets 4 7 7
Cash flow before change in WC 15 61 66
Fixed assets 239 234 232
Change in working capital 30 -11 -5
Inventories 0 0 0
Operating cash flow 46 50 61
Receivables 19 26 31
Capex tangible fixed assets -3 -3 -4
Other current assets 0 0 0
Capex intangible fixed assets -20 -22 -24
Cash and liquid assets 15 8 4
Acquisitions and Disposals -40 -20 -25
Total assets 273 268 268
Free cash flow -18 5 8
Shareholders equity 92 113 150
Dividend paid 0 0 0
Share issues and buybacks 10 0 0
Minority 0 0 0
Total equity 92 113 150
Leasing liability amortisation -4 -1 0
Long-term debt 75 65 53
Other non-cash items -23 10 25
Pension debt 0 0 0
Convertible debt 0 0 0
Leasing liability 5 5 5
Total other long-term liabilities 34 22 14
Short-term debt 19 19 1
Accounts payable 17 16 17
Other current liabilities 31 28 28
Total liabilities and equity 273 268 268
Net IB debt 83 81 55
Net IB debt excl. pension debt 83 81 55
Net IB debt excl. leasing 78 76 50
Capital employed 190 202 209
Capital invested 175 194 205
Working capital -30 -19 -13
Year N/A N/A N/A
Market cap. diluted (m) 342 345 345
Net IB debt adj. 83 81 55
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 425 425 400
Total assets turnover (%) 55,5 61,6 71
Working capital/sales (%) -11,4 -14,5 -8,4
Financial risk and debt service N/A N/A N/A
Net debt/equity (%) 89,4 71,1 36,8
Net debt / market cap (%) 24,4 23,7 16,2
Equity ratio (%) 33,9 42,3 55,8
Net IB debt adj. / equity (%) 89,4 71,1 36,8
Current ratio 0,51 0,53 0,78
EBITDA/net interest 3,7 6,3 8,3
Net IB debt/EBITDA (x) 1,6 1,3 0,7
Net IB debt/EBITDA lease adj. (x) 1,5 1,2 0,6
Interest coverage 19,2 24,7 N/A
EURm 2023 2024e 2025e
Shares outstanding adj. 128 129 129
Diluted shares adj. 130 131 131
EPS 0,02 0,16 0,28
Dividend per share 0 0 0
EPS adj. 0,1 0,26 0,38
BVPS 0,71 0,87 1,15
BVPS adj. -0,09 0,11 0,4
Net IB debt/share 0,64 0,62 0,42
Share price 30,8 30,8 30,8
Market cap. (m) 338 341 341
P/E (x) 125,5 16,3 9,5
EV/sales (x) 3,35 2,56 2,1
EV/EBITDA (x) 8,1 6,8 5,1
EV/EBITA (x) 11,1 9,2 6,4
EV/EBIT (x) 16,6 12,8 8,1
Dividend yield (%) 0 0 0
FCF yield (%) -5,1 1,6 2,3
Le. adj. FCF yld. (%) -6,4 1,4 2,3
P/BVPS (x) 3,71 3,04 2,3
P/BVPS adj. (x) -30,3 24,48 6,53
P/E adj. (x) 27,7 10 7
EV/EBITDA adj. (x) 7,9 6,7 5
EV/EBITA adj. (x) 10,7 9 6,3
EV/EBIT adj. (x) 15,9 12,3 7,9
EV/CE (x) 2,2 2,1 1,9
Investment ratios N/A N/A N/A
Year N/A N/A N/A
Capex/sales (%) 18,1 14,9 14,4
Capex/depreciation 2 1,8 1,9
Capex tangibles / tangible fixed assets 2 2 2,9
Capex intangibles / definite intangibles 32,5 37,8 41,9
Depreciation on intang / def. intang 18 23 24
Depreciation on tangibles / tangibles 0,45 0,55 0,57

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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
Juroszek family 14.9 % 14.9 % 22 May 2024
SkyCity Entertainment Group 10.5 % 10.5 % 29 Dec 2023
Kjetil Myrlid Aasen 5.7 % 5.7 % 29 Dec 2023
Andre Lavold 5.0 % 5.0 % 8 Jan 2024
Jesper Ribacka 4.3 % 4.3 % 29 Feb 2024
Symmetry Invest A/S 3.1 % 3.1 % 31 Dec 2023
Henrik Persson Ekdahl 2.5 % 2.5 % 29 Dec 2023
Avanza Pension 2.4 % 2.4 % 27 Feb 2024
Riskornet AB 2.0 % 2.0 % 29 Dec 2023
G.F. Invest AS 1.9 % 1.9 % 29 Dec 2023
Source: Holdings by Modular Finance AB