DB:GI11

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Gaming Innovation Group

Executive Summary

Gaming Innovation Group Inc., through its subsidiaries, provides and facilitates a platform for Internet gambling, gaming, and betting in Nordic countries, other European countries, and internationally.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Gaming Innovation Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GI11's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

GI11

-3.0%

DE Hospitality

0.05%

DE Market


1 Year Return

-58.4%

GI11

-38.5%

DE Hospitality

3.4%

DE Market

Return vs Industry: GI11 underperformed the German Hospitality industry which returned -34.4% over the past year.

Return vs Market: GI11 underperformed the German Market which returned 4.5% over the past year.


Shareholder returns

GI11IndustryMarket
7 Day0.5%-3.0%0.05%
30 Day-3.2%-11.5%5.5%
90 Day42.9%13.3%19.9%
1 Year-58.4%-58.4%-35.9%-38.5%5.7%3.4%
3 Yearn/a-51.0%-57.7%3.4%-4.7%
5 Yearn/a-52.1%-62.2%10.4%-4.5%

Price Volatility Vs. Market

How volatile is Gaming Innovation Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Gaming Innovation Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GI11 (€0.5) is trading below our estimate of fair value (€1.17)

Significantly Below Fair Value: GI11 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GI11 is unprofitable, so we can't compare its PE Ratio to the DE Hospitality industry average.

PE vs Market: GI11 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GI11's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GI11 is overvalued based on its PB Ratio (2.8x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Gaming Innovation Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

105.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GI11 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: GI11 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GI11's is expected to become profitable in the next 3 years.

Revenue vs Market: GI11's revenue (5% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: GI11's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GI11's Return on Equity is forecast to be very high in 3 years time (42%).


Next Steps

Past Performance

How has Gaming Innovation Group performed over the past 5 years?

-74.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GI11 is currently unprofitable.

Growing Profit Margin: GI11 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GI11 is unprofitable, and losses have increased over the past 5 years at a rate of -74.5% per year.

Accelerating Growth: Unable to compare GI11's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GI11 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: GI11 has a negative Return on Equity (-192.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gaming Innovation Group's financial position?


Financial Position Analysis

Short Term Liabilities: GI11's short term assets (€32.4M) do not cover its short term liabilities (€66.1M).

Long Term Liabilities: GI11's short term assets (€32.4M) do not cover its long term liabilities (€45.6M).


Debt to Equity History and Analysis

Debt Level: GI11's debt to equity ratio (376.7%) is considered high.

Reducing Debt: GI11's debt to equity ratio has increased from 1.9% to 376.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GI11 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GI11 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 13.4% per year.


Next Steps

Dividend

What is Gaming Innovation Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GI11's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GI11's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GI11's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GI11's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GI11's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Richard Brown (35yo)

0.83

Tenure

€321,800

Compensation

Mr. Richard Brown has been Chief Executive Officer of Gaming Innovation Group Inc since November 06, 2019. Mr. Brown is responsible for the positioning of GiG and for aligning people, technology, product a ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD365.72K) is about average for companies of similar size in the German market ($USD468.99K).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Brown
Chief Executive Officer0.83yr€321.80k0.13% 62.3k
Frode Fagerli
Founder & Head of Affiliationno data€40.30k4.04% 1.9m
Justin Psaila
Chief Financial Officerno data€247.50k0.0023% 1.1k
Chirs Armes
Chief Information officer0.92yr€111.00kno data
Tim Parker
Chief Marketing Officer1.67yrs€238.60k0.051% 23.6k
Ben Clemes
Chief Commercial Officerno data€206.60k2.12% 990.4k
Tore Formo
Group Chief Financial Officerno data€221.70k0.51% 237.9k
Cristina Niculae
Chief Strategy Officer1.67yrs€215.80kno data
Mike Broughton
CTO & Partnerno data€108.10kno data
Edgars Peics
Chief Technology Officerno data€144.70kno data
Anna-Lena Astrom
Head of Investor Relations & Corporate Communications2.25yrsno datano data
Claudio Caruana
Director of Legal & Complianceno datano datano data

1.7yrs

Average Tenure

46.5yo

Average Age

Experienced Management: GI11's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Petter Nylander
Independent Chairman of the Board1.58yrs€90.00k0.032% 15.1k
Helge Nielsen
Independent Directorno data€39.00kno data
Kjetil Garstad
Director0.17yrno datano data
Nicolas Adlercreutz
Director0.17yrno datano data
Henrik Ekdahl
Independent Director3.17yrs€29.70k5.44% 2.5m

0.9yrs

Average Tenure

50yo

Average Age

Experienced Board: GI11's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gaming Innovation Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gaming Innovation Group Inc.
  • Ticker: GI11
  • Exchange: DB
  • Founded: 2012
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: kr497.731m
  • Listing Market Cap: kr46.741m
  • Shares outstanding: 90.01m
  • Website: https://www.gig.com

Number of Employees


Location

  • Gaming Innovation Group Inc.
  • @GiG Beach
  • Golden Mile Business Centre
  • St Julians
  • STJ 3148
  • Malta

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GIGOB (Oslo Bors)YesCommon StockNONOKMay 2015
GIGSEKOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKMay 2015
GIGOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBNOKMay 2015
GI11DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2015

Biography

Gaming Innovation Group Inc., through its subsidiaries, provides and facilitates a platform for Internet gambling, gaming, and betting in Nordic countries, other European countries, and internationally. It operates in two segments, Business-to-Business (B2B) and Business-to-Consumer (B2C). The company offers profile management system with integrated KYC tools to verify end users, which comprises of payment gateway, gaming tools, and regulatory adaption engine, as well as bonus, affiliate, and content management systems. It also designs, hosts, and distributes in-house-developed and third-party games, such as casino; and offers sportsbook solutions that helps the customers to offer betting experience to their end users. In addition, it provides iGaming end user leads for casino and sportsbook customers using the techniques and technology in social media, adwords, permission marketing, and display advertising; and digital agency, which comprises of ad-tech, publishing, and paid media channels. Additionally, it offers front end development, compliance standards, payments, and product management services. Further, the company offers B2C casino, sports betting, and poker services through its own brands, such as Guts.com, Betspin.com, Rizk.com, SuperLenny.com, Kaboo.com, Thrills.com, and Highroller.com. The company was founded in 2012 and is headquartered in St Julians, Malta. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:36
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.