A major gaming company based in Malta has reported taking a significant hit from stringent regulation in the Swedish market, with revenues dropping by 16% in the second quarter of this year.

In the first half of the year, Gaming Innovation Group (GIG) registered a loss of €9 million, up 152% from last year’s net loss of €3.6 million.

“It has been a quarter with some headwind, primarily due to a tougher Swedish market,” wrote CEO Robin Reed in the company’s quarterly review.

“Although the €2.5 million EBITDA was an increase of 49% over the year, it was down by 39% over the quarter. Revenues declined by 16% to €31.0 million in the quarter,” he said.

The 16% decline in revenue was mainly attributed to the toughening Swedish market and the termination of a big B2B customer contract.

However, Reed’s general overview remains positive about GIG.

“Our progress in Q1 and Q2 this year puts us in a more robust position to generate and meet demand. We find ourselves with the strongest pipeline of potential customers we have had for the last couple of years.”

“With these proactive developments in place, I am inspired as we have entered the second half of the year. We have proven our ability to meet challenging market conditions. The Company has reacted well, reduced costs, whilst still managing to invest and develop the competitiveness of our product, in order to be the B2B partner of choice.”

“The work is bearing fruits as we are now live with our second landbased Tier 1 customer and with a strong potential pipeline. Our global expansion will be driving sequential growth in both B2C and B2B in H2 and we will manage that growth with a strong focus on execution as the Company is heavily focused on improving earnings per share.”

Meanwhile, Sliema-based company Global Gaming is set to reduce its headcount by half due to the effects of Swedish regulation.

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