The industry veteran, Betsson, acquired Gaming Innovation Group’s (GiG) B2C vertical. That includes brands like Rizk, show positive numbers. And this despite the current ruling climate and acquisition that happen during Q2. In fact, the new parenting company for Rizk released figures indicating that the year and in particular its online casino operation are doing exceptionally well. On that note, let’s dive into the real question: is the operator’s business as a whole reporting the same good results? Well, it doesn’t take an industry expert to figure out that some sides of the food chain are taking a dive. But how bad is it really? Let’s find out.
As reported by the operator, the online casino site of things actually saw a growth of around 40%, if compared from 2019. Where the most significant chunk of revenue comes from the Nordic markets. However, as most major and popular professional sports saw a halt in the early month of 2020, things look a bit different in that aspect. In fact, the margin of growth and revenue earning took a complete nose dive into the pool of loss. Where according to the Q2 reports, sportsbook and its related products came in on a negative 34% on a year-on-year base. But, it’s reported that the company grew 20% on a strict revenue comparison. Plus, at the same time. The income saw a rise of 11% but indicated minus 12% in cash flow. Although it all was expected due to the finalization of the €31 Million GiG take-over-deal.
Even if the reported numbers don’t specifically dive too deep into the different online casino brands. But more importantly, their direct contribution. Yet, what we do know is that Rizk was one of GiG’s largest money earners. As such, the brand was likely a contributor to the increase and overall earnings report. Plus, as the agreement with the involved acquisition partners says that Rizk will remain on GiG’s Core platform for a minimum of 30 months. It all could drastically improve if the decision comes to sever ties and migrate the brand to another option. That, in return, would eliminate the current platform fee. As such, contribute even more to the overall earnings.