• Q2 to keep ~20% organic growth driven by both divisions
• Margins continue to increase, 42% '23e-'25e adj. EBITA CAGR
• '23e EV/EBITDA of ~7x, 11% below peer group median

Q2e: 22% org. growth and 43% adj. EBITDA margin

We forecast Q2 normalised sales and adj. EBITDA of EUR 31m and EUR 13.3m, respectively, for sales growth of 38% y-o-y (of which 22% organic) and a margin of 43%. Unlike Q1, we expect the Media division to be the core sequential driver in the quarter, supported by a strong ramp-up in AskGamblers, while the Platform & Sportsbook division is meeting tough comps q-o-q following the enterprise solutions boost in Q1. Looking y-o-y, however, we expect the P&S division to generate an impressive growth of 29%, driven by the rapid pace of partner roll-outs, purely organic. We also expect Media to continue delivering solid organic growth of 19% from the high share of revenue share contracts, while we expect AskGambler to contribute an additional 24% of inorganic growth. Finally, we expect minor opex growth from Q1, driven by AG contributing to all three months this quarter, while marketing expenses should come up on higher Media activity, coupled with capex that is largely in line with Q1.

'23e adj. EBITA trimmed by 4%, '24e-'25e flattish

We make small revisions to total '23e sales, but we re-distribute it between the two divisions, lowering P&S while raising Media. We upgrade '24e growth, however, by 2pp on slightly higher Media growth. In addition, we tweak our opex assumptions.

Now trading at 6x '24e EV/EBITA

GiG is continuing its growth journey with consistent high double-digit or even triple-digit adj. EBITA growth, while improving its cash conversion. Media and Supplier peer groups are trading at 5x and 6x '24e EV/EBITDA, respectively, while GiG is currently trading at 5x, i.e., in line with Media peers' median and slightly below Suppliers' median. We note that the BETZ Sports Betting and iGaming ETF are up 29% YTD, while GiG shares are up 4%.