GiG Software reports Q3 revenue of €8.5m as net loss widens

Revenue for the three months to 30 September came in at €8.5m, a 12% decline from the €9.7m booked a year earlier, GiG Software's results announcement shows. Over the same quarter, adjusted EBITDA dropped 33% to €0.8m, while the net loss grew by half to €4.5m.

The company attributed the revenue decline mainly to client exits, including the insolvency of Richmond Atlantic, and to lower set-up fees. Recurring revenue was marginally higher at €7.1m, against €7.0m a year earlier. Operating expenses were €1.0m lower year-on-year, with personnel costs cut by €1m after tech staff were laid off earlier in the year; GiG Software said its cost reduction programmes are expected to deliver more than €10m in savings this financial year.

EBITDA fell 64% year-on-year to €0.4m, and earnings before interest and tax were negative €4.3m, compared with a €3.5m loss last year. GiG Software paid €0.1m in tax and recorded €0.1m in finance expense.

Across the nine months to the end of September, GiG Software booked €26.3m in revenue, 6% below the prior year, and adjusted EBITDA was 31% lower. The year-to-date EBIT figure stood at negative €16.2m, and the net loss grew from €11.6m to €16.9m.

GiG Software reiterated full-year guidance of revenue between €45m and €48m and adjusted EBITDA of €5.5m to €7m. For FY27 it expects revenue of €85m to €90m and adjusted EBITDA of €17m to €19m, after its acquisition of a majority stake in 888Africa, valued at €16.4m, completed in August.

Chief executive Richard Carter said the quarter included the acquisition of an 80% stake in 888AFRICA, which he described as "a cash-generative and fast-growing African B2C operator". He said group cash and cash equivalents rose to €8.0m, and that the actions taken this year left GiG "structurally stronger, better capitalised and well positioned to deliver long-term value for our shareholders, our customers and our people".

GiG Software's share price was up more than 22% at the time of writing.