888AFRICA Expects Marketing Share to Fall to 14% as Gaming Duty Rises

The figures appeared in GiG Software’s Q3 financial report, published on October 28. GiG acquired an 80% stake in the African operator at the end of September. Its report now provides a breakdown of a business that had previously been described mainly through revenue growth and acquisition figures.

Marketing Takes 12 Percentage Points Less

The projected reduction in marketing’s share of NGR amounts to 12 percentage points, or 46.2% relative to its 2025 level. Other figures in GiG’s report show how the cost structure is changing:

• Marketing. 26% of NGR in 2025, falling to a projected 14% in 2026.
• Staff costs. 15% in 2025, with forecasts of 11% in 2026 and 8% in 2027.
• Gaming duty. 11% in 2024, rising to 23% in 2025 and a projected 27% in 2026.
• Gross margin. Down from 53% in 2024 to 40% in 2025, with a partial recovery to 41-43% expected this year.

Total operating expenses are projected at $19-20 million in 2026, down from $26.8 million last year. That would represent a reduction of approximately 25-29%, despite expected NGR growth.

Mozambique Accounts for 88% of Revenue

888AFRICA’s business remains concentrated in one country. Mozambique is expected to generate 88% of its NGR in 2026, leaving Angola and Tanzania to account for the remaining 12%.

Casino products dominate the business, representing 96% of projected NGR. The concentration is significant when looking at the operator’s cost structure. GiG reports the gaming duty burden at group level for 888AFRICA, without providing separate tax expense figures for Mozambique, Angola and Tanzania.

Its financial model shows the following:

• 2024. $38.5 million NGR and a $1.6 million EBITA loss;
• 2025. $47.5 million NGR and a $7.8 million EBITA loss;
• 2026 forecast. $52-54 million NGR and $2.2-3.2 million positive EBITA.

Profit Forecast Despite Higher Gaming Duty

A comparison of the two expense categories shows how much of the adjustment has come from marketing. In 2025, marketing and staff costs together represented 41% of NGR. Their projected combined share for 2026 is 25%. That is a reduction of 16 percentage points, larger than the four-percentage-point increase in gaming duty over the same period. These percentages do not cover every operating expense, but they help explain the forecast move back into profit.

GiG expects 888AFRICA to report an EBITA margin of 4-6% this year, compared with negative 16% in 2025. Before cash repatriation costs, the forecast margin is 12-14%.

The operator held $7.2 million in cash at September 30, including balances with mobile network operators. Its financial results will enter GiG’s consolidated income statement from the fourth quarter of 2026.

For 888AFRICA, the projected return to profit rests more on cutting costs than on revenue growth, with gaming duty continuing to absorb a larger share of NGR.