GAN cuts losses as income climbs in first half

GAN has reported a year-on-year increase in gross income during the six months to June 30, while the company was able to cut its losses in the period.

Gross income in the first half amounted to £18.6m (€21.1m/$24.9m), up 17% on the £15.9m posted in the opening six months of last year

Group net revenue also hiked 6% year-on-year to £4.1m, with recurring revenue growing 24% and now accounting for 86% of net revenue.

GAN was able to report maiden positive first-half earnings before interest, tax, deprecation and amortisation (EBITDA), with the £24,000 an improvement on the loss of £500,00 in the first six months of last year.

Loss after tax was also cut from £2.3m to £2m, and basic loss per share improved from £0.04 to £0.03.

Dermot Smurfit, chief executive of GAN, said: “The group 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 favourable EBITDA trend to continue throughout H2 2017.

“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 uplift in player activity as we begin to experience the onset of the seasonally strong autumn/fall period.”

Smurfit added: “As the numbers illustrate our group has now moved into sustainable profitability at the clean EBITDA 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.”

Related article: GAN reveals 30% sales increase in 2016