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SkyCity Entertainment Group, a prominent name in the gaming industry, has made a decisive move to divest its entire 10% shareholding in Gaming Innovation Group Inc (GiG). This strategic decision, announced on Tuesday, is part of SkyCity’s ongoing capital management strategy aimed at reducing debt. The sale, yielding approximately NZ$55 million (US$33.7 million) after expenses, underscores SkyCity’s commitment to financial prudence.
SkyCity’s strategic divestment:
In a formal statement (PDF), SkyCity emphasized that the divestment aligns with its core operational focus. The company stated, “‘SkyCity has decided to divest its shareholding in GiG as it is non-core to its ongoing operations, and is now not considered strategically necessary for SkyCity.’”
According to Inside Asian Gaming, this move marks a departure from SkyCity’s initial acquisition of its GiG stake in April 2022 for €25 million (US$26.8 million). Despite the profitable venture at the time of acquisition, SkyCity has opted to streamline its portfolio to enhance operational efficiency and focus resources on core activities.
The net proceeds from the sale will be directed towards debt repayment, consolidating SkyCity’s financial position. This decision underscores the company’s commitment to maintaining a robust balance sheet amidst evolving market conditions.
GiG Media’s Transformation to Gentoo Media:
Simultaneously, GiG Media has undergone a significant transformation, culminating in its rebranding to Gentoo Media. This strategic evolution follows GiG’s spinoff from Gaming Innovation Group and marks a pivotal moment in its corporate journey.
Under its new identity, Gentoo Media remains committed to its legacy of excellence in the iGaming affiliate market. The rebranding is not merely cosmetic but symbolizes a new era of independence and innovation. Jonas Warrer, CEO of Gentoo Media, expressed enthusiasm about the rebrand, stating, “‘The launch of our new brand is a big milestone for us in the process of separating GiG Media from Gaming Innovation Group.’”
Mikael Harstad, Chairman of the Board, highlighted the strategic significance of the rebrand, affirming that it positions Gentoo Media as an independent entity poised for sustained growth. He remarked, “‘The launch of Gentoo is a testament to the organization’s dedication in delivering superior quality and results.’”
Gentoo Media has achieved notable financial milestones, boasting 13 successive quarters of record-high revenue and a robust EBITDA margin of 48% in the last quarter. This performance underscores Gentoo’s market leadership and its ability to forge sustainable partnerships in the competitive affiliate marketing landscape.
SkyCity Entertainment Group’s divestment from GiG reflects its strategic realignment towards core operations and financial prudence. Concurrently, Gentoo Media’s rebranding marks a transformative milestone, reinforcing its commitment to innovation and market leadership. These strategic moves are poised to enhance shareholder value and position both entities for sustained success in their respective domains.
