B2B supplier of online real-money and social gaming content GAN published its financial report for the six months ended June 30, 2016. Net revenue for the period in review amounted to £3.9 million, up 35% from the same six months of the previous year. The company pointed out that net revenue from the US accounted for 64% of the overall figure reported.
Net revenue from GAN’s flagship product, Simulated Gaming, totaled £1.4 million, up 75% year-on-year from the £0.8 million generated in the first half of 2015. Net revenue from real-money gaming from regulated markets increased 21% to reach £2.5 million.
GAN generated gross income of £15.9 million during the period in review, reflecting a 21% rise as compared to the figure reported for the same six months of 2015. Clean EBITDA loss amounted to £0.5 million compared to loss of £1.5 million generated during the prior-year period. Loss before tax totaled £2.3 million compared to the amount of £2.6 million in the first half of the previous year.
During the reviewed six months, GAN inked agreements with four major US land-based casino operators for the provision of its Simulated Gaming solution. Speaking of the company’s flagship product, GAN launched the first B2B Virtual Reality casino app for New York State-based Empire City Casino, thus extending the solution’s reach across the VR channel. Prior to that, Simulated Gaming had been available across desktop and mobile. In addition, the supplier completed its re-branding during the reported half-year period, with the exercise being initiated last September.
Commenting on the company’s results for this year’s first half, CEO Dermot Smurfit said that the period was one of continued investment for GAN as part of its efforts to increase its market share in the US both for its Simulated Gaming solution and its real-money regulated gaming products. In relation to that, the executive noted that the supplier’s performance was in line with original expectations.
Mr. Smurfit further dwelt that GAN remained focused on creating a recurring revenue base so as to compensate for the investment and to secure future profitability. Sustainable market revenue growth in the company’s core markets – New Jersey and Italy, as well as the considerable increase in revenue from Simulated Gaming were also highlighted by the executive.
