GAN Posts Strong Q4 and 2022, Confirms Strategic Review Launch

North American business-to-business (B2B) technology provider of real money internet gaming solutions and fast-growing international business-to-customer (B2C) betting operator, GAN, released its unaudited financial results outlining the performance of the company during the fourth quarter and 2022. The company posted strong revenue growth for Q4 and 2022, complemented by growth within B2B and B2C segments.

Judging by the recent report, in 2022, GAN’s revenue hit $141.5 million. This result, when compared to the corresponding period in 2021, marked an increase of 14%. The company unveiled that the revenue throughout 2022 was the result of strong growth within its B2C, as well as B2B operations.

The B2B revenue segment last year hit $54 million, up by 19% when compared to 2021. On the other hand, the B2C revenue segment reported $87.5 million, marking another strong increase when compared to the $78.6 million result from the prior year. According to GAN, the outstanding performance of B2C revenue was the result of the strong growth of the company’s Latin American operations.

When it comes to the fourth quarter, GAN enjoyed strong results as well. In Q4, 2022, the company reported total revenue of $36.9 million, representing an increase of 21% when compared to the corresponding period in 2021.

The growth of the revenue from the B2B segment in Q4 was 26%, hitting $14.1 million. That growth was “driven primarily by an increase in platform and content license fee revenue from existing clients and new launches by existing and new customers,” said GAN. Similarly, a strong performance was observed within the B2C segment revenue for the fourth quarter. Overall, that revenue hit $22.8 million, driven by significant growth of 49% of active customers in Latin America.

The Company Confirms Launch of Strategic Review

GAN’s CEO, Dermot Smurfit, pointed out that the company reported strong growth of its B2C KPIs and saw active customers increase by nearly 50% during the fourth quarter. At the same time, he explained that the company closed 2022 with positive momentum after teaming up with WynnBet at Encore Boston Harbor.

That positive momentum continued in 2023, given the recent launch at Encore Boston Harbor, added Smurfit. The CEO said that the launch marked the third GAN Sports client for the US market and reaffirmed the potential of the company’s platform.

“We also ended the year with solid momentum in our B2B sports betting business as we announced our partnership to support WynnBet at Encore Boston Harbor and had a highly successful launch last month.“

Dermot Smurfit, CEO of GAN

Despite the positive results, Smurfit said: “it has become apparent to us that the capital requirements to gain market share for initiatives such as SuperRGS as well as in certain competitive markets for sports betting like Ontario, Canada do not provide a path toward achieving an acceptable ROI in a reasonable period of time.” Consequently, he pointed out that the company decided to “allocate capital away” from such initiatives.

In addition, Smurfit outlined that GAN launched a formal strategic review process of its operations. This process is expected to improve the profitability of the company. Additionally, the strategic review is expected to improve the returns for GAN’s shareholders. Finally, Smurfit said that the company hasn’t planned a deadline for when the strategic review will be completed but vowed that updates on the topic will be provided when necessary.