Gaming Innovation Group (GIG) posted its Q1 financial figures and it reveals that the company’s year-on-year revenue for the first three months has slipped a significant 13.1 percent.
The revenues for the first quarter fell to €32.4m, which for the same period, the previous year was €37.3m.
The company has blamed the stringent measures introduced by the Swedish gambling authority and a failed contract from last quarter of 2018 which couldn’t materialize, for the slumping revenues.
In a statement released to the press, Robin Reed, GiG CEO, said: “The company delivered an EBITDA of €4.1m in Q1, and the key highlight was all-time high revenues and EBITDA in our media business.”
Reed also mentioned that he was satisfied with the performance given the challenges in the Swedish market which dampened revenues and a “major B2B customer lost in October 2018.”
“We had anticipated this and managed the impact by careful cost control. The business is robust with cash flow from operating activities of €2.6m. It was the first time the company experienced a re-regulation of a major market and the quarter has been full of valuable insights and key learnings,” he added.
Earlier last week, New Jersey Division of Gaming Enforcement (DGE) fined the Malta-based gaming services provider company $25,000, as it allowed a non-resident gambler to place online wagers with a licensed operator in the state. GIG had conceded to the charges.
In regards to the decline in revenue in the first quarter, GIG CEO seemed confident and satisfied with the performance and said that the performance would improve significantly in the second quarter.