GAN set to report loss, higher than expected revenues, for 2018

GAN, the Irish developer and supplier of B2B Internet gambling software and services, said on Friday that it will beat expectations with its full-year 2018 results, but will report a loss of between £1-£1.5 million.

In a trading update, the software firm, which is listed on the London and Irish stock exchanges, said it now expects full year revenue of £10.5 -£11.3 million (€13.5-€14.5m)for 2018, up from £9.1 million in 2017.

The company said growth was driven by real money internet gambling, which boosted revenue in the second half by more than 40 per cent on the first half of the year.

As of year-end, GAN had a debt-free balance sheet with £5.3 million in cash. Losses for the year are expected to be between £1-£1.5 million, due to continued investment in technical development resources, to enable the successful launch of the new internet gambling services for clients in West Virginia, Pennsylvania, and New Jersey, the company said.

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Dermot Smurfit, chief executive of GAN said that the company's performance in 2018 has set it up for strong growth in in 2019.

“We exceeded market expectations for revenue growth in 2018, having successfully launched internet sports betting in New Jersey. Our successful £7.5 million fund raising has enabled us to rapidly deliver for our clients and repay £2 million in short term debt. Going into 2019, we are strategically well placed to deliver profitable growth in 2019,” he said.

Looking ahead, GAN said it expects the “strong momentum” achieved during the second half of the year to continue into 2019.

“As such, management expects mid to high double digit percentage year on year revenue growth in FY 2019 and full year positive EBITDA1, based on the current fixed cost base,”the company said, adding that it is fully funded for the year ahead.

GAN recently relocated to London’s financial district from its previous headquarter location in Kensington, in a move which will save the company £0.75m a year.

GAN will publish its full-year results on March 29th.