International edition
September 22, 2020

"Substantial" investment period

GAN delivers 2017 half year results, underlines "positive" clean EBITDA

GAN delivers 2017 half year results, underlines
"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," GAN CEO Dermot Smurfit said.
United States | 09/29/2017

The B2B supplier of Internet gaming enterprise software as a service solutions to the US land-based casino Industry, has announced its results for the six months of the year ended June 30, 2017.

I

n the report, GAN highlighted the following accomplishments the company made during the year:

Launched Simulated Gaming for five new clients in the US during H1 2017 bringing total portfolio of live US casino operator clients to 13 as on June 30, 2017

Secured a definitive agreement to launch a real money Overseas Internet Casino online for a major US casino operator to launch in Q4 2017

Signed second client for real money Regulated Gaming in New Jersey, which is expected to launch in H1 2018, subject to customary regulatory consents

Won a prestigious Internet gaming industry award in the US – eGaming Review North America’s ‘Freeplay Gaming Supplier of the Year’ for Simulated Gaming

Post-period end, rapidly expanded engineering support team in Bulgaria in order to increase availability of development resources

Post-period end, received in aggregate £2.2m ($2.9m) in cash payments relating to the Overseas Internet Casino and CY2016 claim relating to on-going research and development activity

Post-period end, established wholly-owned subsidiary in Tel Aviv, Israel to support user acquisition marketing worldwide for diverse GAN clients

Financial Overview

Positive clean EBITDA1 of £24,000 (H1 2016: loss of £0.5m)

Gross income increased by 17% to £18.6m (H1 2016: £15.9m)

Group Net Revenue of £4.1m (H1 2016: £3.9m), an increase of 6%

Recurring revenues account for 86% of Group Net Revenue and have grown by 24% YoY

The US and Italy remain the key markets for the Group accounting for 63% and 31% of Group Net Revenue respectively cash and cash equivalents were £3.3m

Successfully completed company’s first debt issuance, raising gross proceeds of £2.0m in Q2 2017, positioning the group for further growth

Loss after tax of £2.0m (H1 2016: Loss after tax of £2.3m) and loss per share of £0.03 (H1 2016: loss per share £0.04)

Net Assets of £9.0m

“GAN generated positive clean EBITDA1 in H1 2017, following a substantial multi-year period of investment focused on the US land-based casino Industry. We anticipate this favorable EBITDA trend to continue throughout H2 2017," Dermot Smurfit, CEO of GAN commented

"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. We remain encouraged by the growth characteristics of Simulated Gaming and have already seen a major up-lift in player activity as we begin to experience the onset of the seasonally strong Fall period.

"GAN’s Overseas Internet Casino for one of the largest casino operating groups in the US represents the culmination of GAN’s long-term mission to move land-based US casinos online. This represents an exciting new B2B business for GAN, which will benefit greatly from the client’s marketing investment.

"As the numbers illustrate our Group has now moved into sustainable profitability at the clean EBITDA1 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.”

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