NJ market growth drives GAN to record revenue in Q1
London-listed igaming service provider GAN has credited higher than expected growth in New Jersey’s legal sports betting market for first quarter revenue growing to £4.6m (€5.4m/$6.0m), a new company record.
Revenue was up 122% year-on-year, and £0.2m ahead of GAN’s projections for the three months ended March 31, 2019. This, the supplier said, was down to the rapid growth of online wagering in New Jersey, coupled with increased revenue from cross-selling sports bettors into igaming products over the quarter.
GAN currently has three clients in the state, providing igaming services for Paddy Power Betfair’s FanDuel Group and Ocean Resorts’ Ocean Online Casino offering. It will also power the launch of its Pennsylvania client, Greenwood Gaming and Entertainment’s Parx Casino, in the state.
In Pennsylvania, it is preparing for the launch of online gaming, scheduled for July 15, and the roll-out of online betting, which it expects to take place in June.
While GAN did not provide a full breakdown of revenue and profit for the period, it noted that earnings before interest, tax, depreciation and amortisation amounted to £0.6m in Q1. This followed a period of increased investment to expand its engineering resources. As of March 31, it has a debt-free balance sheet, including £8.6m in cash and cash equivalents.
“We are very pleased with our performance through the first three months of 2019 with a record top-line figure and return to a positive EBITDA,” GAN chief executive Dermot Smurfit (pictured) said. “We knew that the initiatives set in place throughout 2018 positioned the company for a strong first quarter and fiscal year 2019.
“We remain focused on landing new clients, and expanding upon existing contracts with clients, in addition to preparing ourselves for a rapidly expanding market due to an acceleration in sports betting-led online gambling regulation in the United States.”
The supplier said that its 2019 outlook remained highly positive, with rapid growth in real-money gaming across the US and abroad continuing, coupled with higher than expected growth of regulated sports betting. It expects mid to high double digit revenue growth to drive it to a new full-year record, and to post a positive EBITDA result for 2019.