GAN plc (“GAN” or the “Company”), an award-winning developer and
supplier of enterprise-level B2B Internet gambling software and services
in the United States and Europe, today provides an update on trading for
the first quarter period ending March 31, 2019.
Financial Highlights for the First Quarter 2019 – Record Revenues and
Return to Positive EBITDA
GAN generated record revenues of £4.6M during the first quarter ended
March 31, 2019, up 122% on a year-over-year basis when compared to the
first quarter of 2018 and approximately £0.2M (+5%) ahead of
expectations provided as part of the Company’s financial results call
held on March 29, 2019. This is primarily driven by higher than expected
growth of New Jersey’s sports betting in addition to higher than
expected casino cross-selling from internet sports bettors into internet
casino gaming during the Q1 period.
The Company also generated positive EBITDA of £0.6M in the unaudited Q1
2019 period, returning the Company to positive EBITDA following the
strategic investment cycle to expand the Company’s engineering resources.
As of April 30, 2019, GAN enjoys a debt-free balance sheet, including
£8.6 million in cash and cash equivalents. Management has reiterated
there will be no need for additional capital raises in the foreseeable
The outlook for 2019 continues to remain highly positive for GAN as it
continues to see rapid growth in real money gaming in the US markets as
well abroad. In addition, the Company continues to see higher than
expected growth in regulated sports betting markets which it believes
will lead GAN to a record year. The Company maintains its full year
guidance of mid to high double-digit revenue growth with positive EBITDA.
The outlook for the first half year period and full calendar year 2019
is contingent on (a) the market size, clients’ market share and growth
rate of Internet gambling in New Jersey; (b) the timing with which
Pennsylvania’s regulator the Pennsylvania Gaming Control Board (“PGCB”)
permits the launch of Internet real money gambling for residents of the
State of Pennsylvania; and (c) the speed with which efficient marketing
of the Overseas Internet Casino is conducted in European regulated
markets by GAN.
Dermot Smurfit, CEO of GAN, commented, “We are very pleased with our
performance through the first three months of 2019 with a record
top-line figure and return to a positive EBITDA. We knew that the
initiatives set in place throughout 2018 positioned the Company for a
strong first quarter and fiscal year 2019. We remain focused on
landing new clients, and expanding upon existing contracts with clients,
in addition to preparing ourselves for a rapidly expanding market due to
an acceleration in sports betting-led online gambling regulation in the
Sports Betting Update
The Company saw rapid growth in internet sports betting in New Jersey in
the first three months of 2019, driven by national events such as the
Super Bowl (American football) and NCAA’s college basketball tournament.
GAN continues to highlight the growth of Internet gambling in New Jersey
in a monthly press release: Total Internet Gaming Win was $39.1 million
in March up 52.7% year-on-year and Internet Sports Wagering Gross
revenues in the same month was $24.3 million(1) helping drive
GAN’s first three months’ revenue in 2019 to record levels.
GAN continues to prepare for Pennsylvania Internet gambling, now
expected to commence before the end of June. GAN’s client in
Pennsylvania, Parx Casino, is the largest single casino property by
market share in Pennsylvania. GAN will also be launching PaddyPower
Betfair’s ‘FanDuel’ Internet sports betting and casino gaming in
Pennsylvania in Summer 2019. GAN is now positioned for substantial
growth in regulated real-money Internet gambling in the US following the
commencement of Pennsylvania’s Internet gambling market.
GAN is increasingly confident in the long-term prospects for intra-State
real-money gambling in the US and believe the opportunity of Internet
sports betting may now serve as a catalyst for other US States to
regulate both Internet sports betting as well as Internet gaming with
recent regulatory progress noted in the States of Ohio, Indiana, Montana
Company Schedules 2019 First Half Financial Results
The Company is expected to release its results for the half year period
ended June 30, 2019 on September 27, 2019.
About GAN Plc
GAN is a leading business-to-business (“B2B”) supplier of internet
gambling software-as-a-service solutions (“SaaS”) to the US land-based
casino industry. The Company has developed a proprietary internet
gambling enterprise software system, GameSTACK™, which it licenses
principally to land-based US casino operators as a turnkey technology
solution for regulated real-money internet gambling, encompassing
internet gaming, internet sports gaming and virtual Simulated Gaming.
The Company has also launched digital user acquisition & retention
marketing in support of the Internet Casino (https://casino.winstar.com)
provided by GAN’s Digital Marketing Agency in Tel Aviv, Israel.
GAN is listed on the London Stock Exchange (LSE: GAN) and on Euronext
Dublin (Euronext Growth: GAME).
For more information please visit www.GAN.com.