GAN issues trading update
News on 24 Jan 2018
News on 24 Jan 2018
Regulated and Simulated Gaming provider GAN has posted a trading update covering H2-2017 and FY-2017, reporting that the company performed in line with market expectations for the year ended December 31, 2017.
The company’s products were launched at several new clients, including the Overseas Internet Casino. During the period, strict control was maintained over costs, generating positive EBITDA.
The company said that the outlook for 2018 remains positive due to continued growth in real money Regulated Gaming and Simulated Gaming.
In Italy, growth in Net Revenue experienced during H1 has continued into H2 where GAN has benefitted from the seasonally strong Q4 period.
In New Jersey, GAN’s business continues to enjoy favourable market conditions and performed strongly in 2017. In H2 2017, GAN signed a multi-year agreement with AC Ocean Walk LLC which will be GAN’s second client for real money Regulated Gaming in New Jersey.
AC Ocean Walk LLC is the newly-announced owner-operator of Ocean Resort Casino (formerly TEN – Revel) for the launch of a real money Regulated Gaming online experience offering Internet casino gaming together with Internet sports betting integrated with the on-property rewards program. This new Internet gaming destination is currently expected to launch in H1 2018 and will contribute materially to GAN’s revenue and earnings in H2 2018.
In Europe, the identity of GAN’s client for the Overseas Internet Casino can now be confirmed as the major Native American US casino operator Chickasaw Nation. The Overseas Internet Casino launched for the Chickasaw Nation was delivered in H2 2017 and is now available in regulated European markets at www.WinStar.com.
In Pennsylvania, regulation of real money Internet gaming occurred on October 30, 2017. GAN has served Simulated Gaming to Pennsylvania’s market-leading land-based US casino Parx Casino with GAN’s GameSTACK enterprise gaming software platform installed on-property at Parx Casino since 2015 and is currently preparing to deliver real money Regulated Gaming upon commencement of the Pennsylvanian Internet gaming market anticipated later in 2018.
Simulated Gaming
GAN’s US-facing Simulated Gaming business continued to benefit from the launch of several new US casino operator clients in 2017 including Ocean Resort Casino, Chickasaw Nation’s WinStar World Casino, MGM’s The Borgata, Oneida Nation’s TurningStone and Station Casinos.
As on December 31, 2017 GAN operated Simulated Gaming for 12 major US casinos coast-to-coast (December 31, 2016: 8) together representing in excess of $8 billion in annual land-based gaming revenues as well as for a consortium of land-based gaming venues in Queensland, Australia identified as ‘Club8Casino’.
With respect to online sports betting in the US, GAN welcomes any potential repeal of the Professional and Amateur Sports Protection Act 1992 (“PASPA”) by the US Supreme Court and has taken preparatory steps to deliver a managed sports betting solution to its US clients via GAN’s GameSTACK enterprise gaming software platform in partnership with European B2B sports betting system and services provider SBTECH
Dermot Smurfit, CEO of GAN commented on the 2017 period:
“The company generated positive clean EBITDA1 in H1 2017 following a substantial multi-year period of investment focused on the US land-based casino Industry. This favourable EBITDA trend has continued throughout H2 and we have delivered on the market’s expectations to generate positive EBITDA for the full calendar year 2017.”
