Gaming Innovation Group: Clockwork growth - ABG

Media still shining, with 24% org. sales and 19% FTD growth
Platform & Sportsbook pipeline doubled since end of Q3'23
Set for split before end of Q2 - trading at ~5x '24e EV/EBITDA


Media remains the (growing) cash cow

GiG Media delivered 19% FTD growth despite tough comps from the World Cup in Q4'22; we highlight the impressive growth in the Nordics of 12% (which is a relatively mature market), and 64% growth in Rest of Europe. Also, the organic top line and EBITDA growth of 24% and 40%, respectively, are notably consistent and make us raise our '24e-'25e top line by 3-6%, and EBITDA by 5-9% on greater conviction in GiG's organic growth target of ~20% (on group level, new divisional targets are to be set). Furthermore, we emphasise the favourable mix, with the high-margin Publishing segment keeping its momentum, delivering 100% organic FTD, plus a continuously strong performance for AskGamblers, adding more confidence to our EBITDA estimates. Given the impressive performance of AskGamblers, we are encouraged to see more M&A in the division, and we have high hopes for a successfull integration of KaFe Rocks.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/gaming-innovation-group/Equity-research/2024/2/gaming-innovation-group---clockwork-growth-/