Smurfit steps down as CEO of GAN
Smurfit led GAN as CEO for more than 21 years, having taken on the role back in September 2002. However, the board accepted his resignation earlier this week and he officially left the business yesterday (26 September).
GAN is currently evaluating a consulting arrangement for Smurfit, who remains a substantial stockholder in GAN.
The business moved quickly to replace Smurfit, naming McGill as interim CEO with immediate effect.
McGill has been non-executive chairman of GAN since January 2014, prior to which he was president of Joingo. He also had a spell as chief operating officer of Aristocrat Technologies and worked for Cyberview Technology and WMS Gaming.
Strategic process continues
GAN says McGill will assume leadership of all executive functions, including leading its ongoing strategic process. The provider launched the review in Q1, looking at a “range of strategic alternatives” to improve value for shareholders. A special committee of non-executive directors is evaluating options for the business.
Providing an update on the process, GAN said it is ongoing and that all options are still being considered. Among the options being considered are potential sales of parts of or the entire GAN business.
During Q2, the provider said it had spoken to several interested parties, although it has not yet reached any sort of agreement. No timetable has been set for the end of the process.
“There are no definitive agreements for a transaction in place at this time,” GAN said. “There is no assurance that a transaction will take place and no expected timetable for completion of any transaction.”
GAN cuts losses despite revenue drop in Q2
The review was ongoing throughout GAN’s Q2, during which revenue fell 3.4% to $33.8m.
This decline was due to a drop in B2B revenue, with this falling 30.3% to $9.9m. B2B revenue comprised $7.2m in platform and content licence fees and $2.7m of development services and other sources.
Operating costs reached $42.3m, which was 41.6% lower than the previous year. This was mainly due to last year’s figure including $28.9m in impairment charges, with such costs not appearing in Q2 this year.
As such, net loss was $18.4m, compared to $38.3m last year. However, adjusted EBITDA slipped from a positive of $1.3m to a $2.0m loss on the back of the B2B decline.