GAN reports a better year

Software-as-a-service provider GAN has posted its FY 2017 results, reporting rising revenues and smaller losses and flagging the following highlights:

* US business supplying GAN simulated gaming software to American land casinos better with five new US casino clients, and two US casino clients for real money regulated gaming in New Jersey. The company also signed up an unidentified European company;

* Losses came in at GBP 4.2 million (FY 2016: GBP 5.2 million);

* Gross income rose 30 percent year-on-year at GBP 41.1 million;

* Net revenue was uip 17 percent y-o-y at GBP 9.1 million;

* EBITDA was GBP 500,000 positive (FY 2016: loss of GBP 900,000);

* Expenses and costs rose from GBP 7.4 million in 2016 to GBP 8 million this year, due primarily to increased royalties to games content providers in Europe for real money gaming and in the US for Simulated Gaming;

* Admin expenses fell GBP 100,000 to GBP 5.5 million despite a GBP 200,000 foreign exchange loss;

CEO Dermot Smurfit reported:

“2017 saw GAN deliver its first full year of positive EBITDA since 2013 following a lengthy investment cycle to position GAN as a market leader in the US casino Industry delivering Internet gaming solutions for real money Regulated Gaming and Simulated Gaming which is deployed in advance of regulation. GAN’s performance to date in 2018 is in line with our expectations.

“During the year, the firm launched simulated gaming for five new US casino clients, and signed up two US casino clients for real money regulated gaming in New Jersey and European markets, respectively.
“October also saw legislation introduced in Pennsylvania that would allow residents to play real money Internet casino games, starting from the second half of 2018.

“We are increasingly confident in the long-term prospects for intra-State real-money gaming in the US and believe Pennsylvania may now serve as a catalyst for other US States to regulate Internet gaming and, in the event the US Supreme Court ruling lifts the long-standing Federal ban, the incremental opportunity of Internet sports betting,” Smurfit said.

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