- GAN hits record high 145% growth in H1, 2019
- Growth boosted by strong US sector
- GAN confident in future EBITDA prospects
Technology gambling supplier GAN has turned a $420,000 H1, 2018 net loss into $3.73 million EBITDA in H1, 2019. The company has reached a 145% increase in revenue year-over-year (YOY).
GAN’s Revenue Goes Up 145% YOY
Online gaming vendor and platform developer GAN has posted impressive numbers in the United States. The company registered a 145 percent increase in revenue YOY. This is a direct result of its scaling in the US market, which has been showing strong signs of growth.
GAN results captured the period up to June 30, 2019, with revenue hitting $14 million in the first six months of 2019. The expansion of legal sports betting has bolstered the company’s operations significantly.
Gaming revenue also went up by over $3 million, thanks to the US market, registering a 67 percent increase YOY. Other markets also contributed to the company’s strong showing in the period, including the European B2C segment where revenue went up to $747,000 over the period. Meanwhile, revenue in Italy climbed up to $2.24 million.
GAN had to foot some bills as well. Administrative costs hit $5.2 million as the company kept adding to its offices and staff in Las Vegas, Israel and Bulgaria – a precursor to future expansion plans.
Strong EBITDA and Net Profit
More impressively, GAN’s EBITDA has improved significantly, hitting $3.73 million, which was a great jump on the H1, 2018 net loss of around $420,000.
Dermont Smurfit, GAN’s CEO had this to say commenting on the latest development:
The first half of 2019 saw rapid growth in revenues driven by real money Internet gambling in the US and the accelerating adoption of Internet sports betting by numerous states.
Mr. Smurfit said that the company was pleased to supply the United States with real money Internet gambling products. He noted that the relevancy of the GAN technology had made the present success possible.
‘We have an incredibly positive outlook for the remainder of 2019, as the recent launch of internet sports betting and casino gaming in Pennsylvania, our current sales pipeline and existing contracted clients are projected to significantly enhance GAN’s revenue and EBITDA prospects,’ he continued.
Things have been going well in the United States. New Jersey posted stronger betting results in August. Meanwhile, the NCAAF and NFL seasons have kicked off, with the NBA around the corner as well.
Meanwhile, New York has edging closer to relaunching its gaming market, with the New York Gaming Commission re-opening a tender that will help it determine how to proceed with expanding in the state.
GAN is convinced that the arrival of online gambling in Pennsylvania will help the company expand and boost its operational results further.
Stock markets reacted positively to the news, boosting GAN’s overall share price to $0.012.