Game Account Network reduces losses
News on 28 Sep 2017
News on 28 Sep 2017
Online gambling technology firm Game Account Network (GAN) has posted its H1-2017 performance numbers, noting that it has managed to reduce year-on-year losses from GBP 2.3 million last year to GBP 2 million in 2017 so far.
Revenue over the half-year grew 6 percent y-o-y to GBP 4.1 million on the back of increased revenue share from the company’s core markets, Italy and the US.
Business-to-business net revenue also increased slightly while business-to-consumer revenue remained flat.
Management reported that cost-cutting initiatives have been accelerated without compromising product quality or customer relationships, but that admin costs rose by GBP 100,000 in H1 when compared with 2016.
The company reported a cash balance at mid-year of GBP 3.3 million, slightly up on the previous half-year, and attributable to an unsecured convertible loan note issue which generated GBP 2 million for the company.
Forecasting performance in the second half of 2017, GAN Management is optimistic that demand for simulated gaming will increase, generating higher revenues following the launch of five new casino operators in the first half.
Further product development is also expected to generate revenues for the company’s new and existing operators.
“The group generated positive clean EBITDA in H1 2017 following a substantial multi-year period of investment focused on the US land-based casino Industry. We anticipate this favourable EBITDA trend to continue throughout H2 2017,” said Dermot Smurfit, the company’s chief executive.
“The first half of 2017 saw continued growth in recurring revenues driven by the launch of five new clients of Simulated Gaming and strong growth in real money Regulated Gaming markets in the US and Europe.
“As the numbers illustrate our group has now moved into sustainable profitability at the clean EBITDA level. Growth prospects for Simulated Gaming and real money Regulated Gaming continue to offer the Company a viable path to creating significant incremental shareholder value,” he concluded.
