GAN hails investment strategy as finances rise in first half
GAN has cited its ongoing investment strategy as one of the main reasons behind year-on-year financial growth in the six months to June 30.
Gross income was up 21% to £15.9 million (€18.4 million/$20.6 million), while net revenue climbed 35% to £3.9 million.
Of the overall revenue figure, 64% of this originated from the US, while GAN also said that net revenue from its Simulated Gaming service jumped 75% to €1.4 million.
Clean earnings before interest, tax, depreciation and amortisation narrowed to a loss of £500,000, an improvement on £1.5 million in the same period last year, while loss before tax dropped from £2.6 million to £2.3 million.
Net assets at the end of the first half amounted to £10.5 million, with cash and cash equivalents at £4 million.
Dermot Smurfit, chief executive of GAN, said: “The first half of 2016 has necessarily continued the period of investment for GAN in acquiring US market share for both Simulated Gaming and real-money regulated gaming, and continuous improvements in the product offering; the performance is in line with management expectations.
“We have continued to focus on building a substantial recurring revenue base to offset this investment and achieve future profitability.
“In particular, Simulated Gaming revenues have grown substantially year on year driven by new client launches and phasing in of marketing investment by existing clients of Simulated Gaming.
“In addition we have experienced further growth in our sustainable real money gaming markets both in New Jersey in the US and in Italy in our European market.
“As the numbers illustrate, our investment in the business continues; our financial results continue to be impacted by factors outside of our control including delays in further intra-state regulation of real-money internet gaming together with continued delays in securing additional system sales on commercially attractive terms.
“Growth prospects for Simulated Gaming and real-money regulated gaming in New Jersey continue to offer the company a viable path to sustained profitability and significant incremental shareholder value.”
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