LONDON & DUBLIN--(BUSINESS WIRE)--GAN plc (“GAN” or the “Group”), a leading B2B supplier of Internet gaming enterprise software-as-a-service solutions to the US land-based casino Industry, announces its results for the six months ended June 30, 2017.
The full Report and Financial and Operational Review are available on GAN’s website at www.GAN.com.
Operational Overview and Current Developments
- Launched Simulated Gaming for five (5) new clients in the US during H1 2017 bringing total portfolio of live US casino operator clients to 13 as on June 30, 2017 (as on June 30, 2016: 5)
- Secured a definitive agreement to launch a real money Overseas Internet Casino online for a major US casino operator to launch in Q4 2017
- Signed second client for real money Regulated Gaming in New Jersey, which is expected to launch in H1 2018, subject to customary regulatory consents
- Won a prestigious Internet gaming industry award in the US – eGaming Review North America’s ‘Freeplay Gaming Supplier of the Year’ for Simulated Gaming™
- Post-period end, rapidly expanded engineering support team in Bulgaria in order to increase availability of development resources
- Post-period end, received in aggregate £2.2m ($2.9m) in cash payments relating to the Overseas Internet Casino and CY2016 claim relating to on-going research and development activity
- Post-period end, established wholly-owned subsidiary in Tel Aviv, Israel to support user acquisition marketing worldwide for diverse GAN clients
- Positive clean EBITDA1 of £24,000 (H1 2016: loss of £0.5m)
- Gross income increased by 17% to £18.6m (H1 2016: £15.9m)
- Group Net Revenue of £4.1m (H1 2016: £3.9m), an increase of 6%
- Recurring revenues account for 86% of Group Net Revenue and have grown by 24% YoY
- The US and Italy remain the key markets for the Group accounting for 63% and 31% of Group Net Revenue respectively
- Cash and cash equivalents at June 30, 2017 were £3.3m
- Successfully completed Company’s first debt issuance, raising gross proceeds of £2.0m in Q2 2017, positioning the Group for further growth
- Loss after tax of £2.0m (H1 2016: Loss after tax of £2.3m) and loss per share of £0.03 (H1 2016: loss per share £0.04)
- Net Assets at June 30, 2017 of £9.0m
Dermot Smurfit, CEO of GAN commented:
“GAN 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 favorable 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 up-lift in player activity as we begin to experience the onset of the seasonally strong Fall period.
GAN’s Overseas Internet Casino for one of the largest casino operating groups in the US represents the culmination of GAN’s long-term mission to move land-based US casinos online. This represents an exciting new B2B business for GAN, which will benefit greatly from the client’s marketing investment.
As the numbers illustrate our Group has now moved into sustainable profitability at the clean EBITDA1 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.”
1. Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other items which the directors consider to be non-recurring and one time in nature
Half-Year Results | Conference Call Details
The GAN management team will host a conference call for analysts & institutional investors at 11am ET / 8am PST.
Please use the following dial in numbers:
US & Canada Participants: 877-407-8629
International Participants: 201-493-6715
The Half Year Results Press Release and Presentation is available to download from the website, www.GAN.com
Half-Year Results | Webcast
The call will also be simultaneously webcast over the Internet via the following link: http://gan.equisolvewebcast.com/h1-results and such link will also be made available in the “Results and Presentations” section of GAN’s website www.GAN.com/investors/results-and-presentations
Note regarding forward-looking statements
This announcement includes forward-looking statements, including statements concerning current expectations about future financial performance and economic and market conditions which GAN believes are reasonable. However, these statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.