GiG Q3 2026 Results: Revenue Falls Despite Cuts

Key Points

• At the end of Q3, GiG had got its headcount down by more than a quarter, 37% less, to 251 full-timers, yet still managed to post a 12% revenue drop to €8.5m and an after-tax loss of €4.5m.
• GiG lists 251 staff at the end of September, down from 399 at the end of December, a reduction of 37%. This is substantially more than the 25% cut it originally said.
• Although CEO Richard Carter’s presentation said the 888Africa deal will bring in a chunk of the €85m to €90m revenue target for 2027, it represents as much as €50 million of that total, so it’s going to be pretty crucial.

A Leaner GiG, or Is It?

The accounts show a trimmed-down GiG, only 251 full-time staff at the moment, down from 399 at the end of last year, after the company cut costs. But the Q3 numbers tell a different story, with a 12% drop in revenue, a fall from €9.7m to €8.5m.

During the Q3 earnings call, CEO Richard Carter told the investors that GiG’s cost-saving drive was already paying off, creating a “sharper, fitter” and “more highly connected GiG” as NEXT.io reported. But the words are ringing hollow as the latest numbers show that although the company saved €1m on costs the revenue fell by €1.2m.

What Q3 Numbers Show, Not a Very Good Picture

The official Q3 report paints a grim picture, revenue continued to slide. Adjusted EBITDA dropped by a third to €0.8m, and the loss after tax increased from €3.0m to €4.5m. Losses in the first nine months have reached €16.9m, nearly 45% more than the previous year.

GiG blames some of the revenue fall on client exits, there was also the insolvency of Richmond Atlantic, and €0.3m less in set-up fees. Recurring revenue was steady at €7.1m though. Costs did come down with a 12% drop in operating expenses to €7.0m and staff costs plummeting to €4.6m.

Despite cutting costs it fell short of the savings it made because the €1m reduction in costs was less than the €1.2m decline in revenue. Gross profit also took a €1.4m hit. Revenue losses were way ahead of savings. The company was not any more profitable.

The Headcount Cut Looks Deeper Than They Claimed

GiG first said it had got its headcount down by more than 25% back in August. Early this year the CFO said there was a cut of more than 25% since 1 January. Then in October the CFO said there was more to come in savings. But in the Q3 report its own numbers show a far bigger reduction, nearly 37%. There is no explanation for this discrepancy.

The savings don’t just come from cutting staff. The CFO said the first €4.5m of savings came from AI, engineering and operations, and a lot of that was headcount related.

The 888Africa Deal Comes With 2027

The announcement of the 888Africa deal by GiG came on 26 August, after which the acquisition was concluded in September. In line with the final terms of completion, GiG paid €6.1m at completion and is obliged to make further payments of €10.3m over ten months. The acquisition costing €16.4m gives GiG an 80% ownership of an operator leading in the market in Mozambique, and having licenses in Angola and Tanzania.

Funding of the deal came through a capital raising of €8.5m in August. This comprised a share placement worth €2.5m and two-year convertible loans amounting to €6m. The loans have a 15% interest rate. The subscribers and lenders included Carter himself and GiG’s major shareholders.

For 2027, GiG forecasts revenue between €85m and €90m and adjusted EBITDA of €17m to €19m. The August revenue bridge done by Carter indicated how GiG could achieve this forecast. Carter said the core business will deliver around €36m to €37m, whereas 888Africa will contribute around €50m. His verbal estimate of EBITDA for that day was €18m to €20m, marginally higher than the recently issued forecast.

Forecast Has Changed Several Times Already

The financial forecast of GiG has changed several times. In January, GiG revised its 2026 revenue guidance downwards from €56m to €60m to €44m to €48m. Adjusted EBITDA guidance was also revised downwards from at least €15m to €10m to €13m. GiG attributed its revision to currency movements and a delay in the Brazilian launch.

In August, the company downgraded the EBITDA guidance to €5m to €7m, notwithstanding 888Africa in the fourth quarter. In October, GiG had narrowed its forecast to revenue of €45m to €48m and EBITDA of €5.5m to €7m.

Cash had increased from €3.5m in June to €8.0m. However, GiG attributes the increase to the consolidation of 888Africa. The balance sheet also shows current liabilities of €30.2m, comprising €10.9m of deferred consideration, against current assets of €19.6m.

Expert Analysis

In our opinion, the phrase “sharper, fitter” comes too soon. The stories show that GiG has become a smaller firm, but they do not yet indicate a more efficient business, given the fact that revenue and gross profit decreased faster than expenses.

Also, we believe that GiG puts too much weight on AI in justifying its cost reductions. According to the breakdown given by the CFO himself in August, the program related to AI was the small one of €4.5m, and it was mainly concerned with personnel. The larger €6m cost reduction was a result of market exits and closure of the white-label business. It is all about restructuring, and investors should be told about the causes of these savings.

Moreover, the 2027 growth plan relies to a larger extent on an acquisition rather than on the growth of the core business of GiG. Based on the sales of €26.3m within the first nine months of 2023 and the Q4 estimate of €8.5m given by Carter in August, we calculated the core revenue of about €35m in this year. Carter’s estimate of €36m-€37m for 2027 for the core business is several per cent growth. Therefore, the majority of projected revenue growth should come from Mozambique.

Here the controversy starts. On the one hand, GiG calls 888Africa a high-growth business, and, on the other hand, the net gaming revenue for Q3 was $12.3m which was less than $12.6m a year ago. The share of Mozambique in the forecast of 888Africa revenue in 2026 is 88%. Gaming duty increased from 11% of the revenue in 2024 to 27% in 2026. Besides, there was an EBITA loss of $7.8m in 2025. The profit of GiG is forecasted at 2.2m-3.2m this year, and therefore, the turnaround of the situation seems positive on paper, but it is still quite early.

However, there are some points regarding the financing terms that should be considered. The participation of insiders in the deal funding means confidence in the business, however, Carter acts as the CEO and the creditor with the loan rate of 15%. According to the agreement, 25% of the principal amount can be converted into shares every six months at a 10% discount from the market price. There is nothing improper in these terms, but still, shareholders should monitor them carefully.