GAN Publishes 2020 Results

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GAN has published its Q4 and full-year results for the period ended 31 December 2020, with full-year revenue up 17% to $35.2m.

Annual Gross Operator Revenue increased by 73% to $545 million year-over-year, and real money Internet gaming (RMiG) was up 6% to $25.6 million in 2020. Simulated (SIM) gaming revenue increased 66% to $9.5 million in 2020. In the US, RMiG and Simulated offerings saw revenue growth of 92% and 77%, respectively.

The company said it expects full-year 2021 revenue of $100-105 million, including first-quarter revenue of $24-25 million.

“The first quarter of 2021 has started particularly strong as we launched multiple clients in the state of Michigan, which exceeded both our expectations and those of our customers,” Dermot Smurfit, CEO of GAN, said.

“We also signed our first sportsbook engine customer during the first quarter, and continue to entertain significant interest from both current and prospective clients for our new sportsbook offering and its associated managed trading services. Our integration of the Coolbet team and technology are on schedule and we continue to forecast a midyear launch of the B2B sportsbook technology and service,” Dermot Smurfit added.

Gross profit of $21.7 million compared to $18.0 million, driven by growth in recurring revenue-oriented services including RMiG B2B and SIM revenues. Net loss was $20.2 million, or $0.75 per diluted share, compared to net income of $2.0 million, driven by increased operating expenses related to new hiring to meet client demand ($6.9 million), share based compensation and related expenses ($10.2 million), increased professional services incurred in relation to the company’s initial public offering, corporate infrastructure and expansion projects ($5.8 million), and expenses and transaction costs related to the acquisition of Coolbet ($1.0 million).

Adjusted EBITDA loss of $2.3 million compared to Adjusted EBITDA of $7.9 million in the prior year driven by increased operating expenses and transaction costs related to the acquisition of Coolbet.

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