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GAN looks to future after H1 loss

| By iGB Editorial Team
PPB and SBTech partner anticipates US-driven growth in 2019

GAN believes its US potential will only hit the balance sheet from next year after posting a loss during the first half of 2018.

The supplier, which has this year inked deals in North America with Paddy Power Betfair, SBTech and Ocean Resort Casino, said it experienced double-digit growth across net revenue and gross income in the six months to June 30, however loss after tax widened from £2m to £2.9m.

In a trading update, Dermot Smurfit (pictured), chief executive of GAN, was mainly positive about the results and focused on potential growth opportunities for the company, particularly in the US. Beyond the eye-catching deals with PPB and a major Atlantic City casino, GAN expects to launch its Simulated Gaming service with the Mississippi Band of Choctaw Indians in Q4.

However, Smurfit repeated a warning that its performance in the second half of the current year depends mainly on factors outside of its control in New Jersey and Pennsylvania.

He said: “Regulatory delays will impact US real-money gaming results in H2 2018, but we will continue to invest in resources to prepare for 2019 and beyond.

“GAN’s prospects for 2019 and beyond in real-money gambling are very encouraging given the initial results from the launches of internet sports for Paddy Power Betfair’s FanDuel Group in New Jersey, internet gaming for Ocean Resort Casino in New Jersey, and the start of customer acquisition marketing for overseas internet casino.”

As well as its progress in the US, GAN has also signed a multi-year agreement with Italian betting and gaming operator Goldbet.

Looking ahead, Smurfit said that the expansion of the Bulgarian and Las Vegas-based engineering teams would provide the company with the resources to on-board new clients as well as serving existing customers.

He added: “By way of outlook on 2019, the recent launch of internet sports betting, the company’s current sales pipeline and existing contracted clients are projected to significantly enhance GAN’s revenue and EBITDA prospects.”

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