GAN Announces 2018 Annual Financial Results Highlighted by a 16% Increase in Net Revenue
March 29, 2019
Company to Hold Conference Call on
The full Chairman’s Report and Financial and Operational Review are available on GAN’s website at www.GAN.com.
2018 Financial Overview
- Gross Income of £49.2m (2017: £41.1m) an increase of 20% on 2017
- Net Revenue of £10.6m (2017: £9.1m) an increase of 16% on 2017
- Clean EBITDA1 loss of £1.5m (2017: profit of £0.5m)
- Loss before tax of £6.7m (2017: £4.2m) and loss per share of £0.08 (2017: £0.05)
- Loss after tax of £6.0m (2017: £3.5m)
- Cash and cash equivalents at the end of the year of £5.5m (2017: £2.7m)
- Net Assets at the end of the year of £9.4m (2017: £7.6m)
-
Raised £7.5m in
June 2018 through issue of equity and repaid £2.0m convertible loan to become debt-free (excluding lease liabilities)
2018 and Recent Strategic & Operating Developments
-
Launched Internet sports betting in
New Jersey onSeptember 1, 2018 for PaddyPower Betfair’s ‘FanDuel’ -
Continued delivery of PaddyPower Betfair’s fast-growing
New Jersey Internet casino business BetfairCasino.com supported by GAN’s Internet gambling platform, content & supporting services - Commercially licensed GAN’s US patent number 8,821,296 (“Patent”) for linking a patron’s rewards account to their Internet gambling account, for a five year term, to PaddyPower Betfair’s US subsidiary in 2019.
-
Launched Simulated Gaming for one new client,
Choctaw Mississippi -
Continued investment in expanding technical engineering resources
principally in
Sofia, Bulgaria -
Continued investment in preparation for the launch of Internet sports
betting and Internet casino gaming for the market leading casino in
the
State of Pennsylvania ,Parx Casino -
In
January 2019 , expanded relationship with PaddyPower Betfair for delivery of Internet sports betting and Internet casino into theState of Pennsylvania and theState of West Virginia -
In
February 2019 , expanded relationship withParx Casino for delivery of Internet sports betting and Internet casino into theState of New Jersey
“2018 was a milestone period for GAN as we continued to adapt to
positive changes in our online gaming market and as a result feel that
the Company is well positioned for the coming year. The repeal of a 25
year-old Federal ban on sports betting in America in
GAN has continued to position its business to capture growth in emerging online gambling markets in the US. 2018 saw significant progress with the launch of Internet sports betting together with the launch of just one single new client of Simulated Gaming as real money gambling initiatives drove our strategic decision making. A number of significant commercial and strategic developments occurred in 2018 and early 2019, the most significant of these was the launch of Internet sports betting but the second most significant was the licensure of GAN’s US Patent to PaddyPower Betfair’s US subsidiary. Management believes that the recognition of GAN’s US Patent significantly underpins GAN’s intangible asset value and could potentially lead to further client partnerships and US Patent licensing revenue opportunities.
GAN continued to prepare for Pennsylvania Internet gambling, now
expected to commence in Summer 2019 following a multi-month regulatory
delay. GAN’s client in
New Jersey’s Internet gaming market out-performed our full year
expectations with gross gaming revenues up 22% year on year to
In
We remain confident in our prospects for 2019 and beyond. For 2019,
we forecast material growth of Internet sports betting, Simulated
Gaming™ and real money Internet gaming undertaken for US clients in
We were very pleased to see
Notes
1. Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other items, which the directors consider reflects the underlying performance of the business, and excludes non recurring and significant non cash items.
Note regarding forward-looking statements
This announcement includes forward-looking statements, including statements concerning current expectations about future financial performance and economic and market conditions which GAN believes are reasonable. However, these statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
Conference Call Details
The company will host a conference call on
these financial results.
Date/Time:
Participant Dial-In Numbers:
International: 201-493-6715
To access the call, please dial-in approximately five minutes before the start time.
Webcast
The call will also be simultaneously webcast over the Internet via the following link https://78449.themediaframe.com/dataconf/productusers/gan/mediaframe/29406/indexl.html such link will also be made available in the “Results and Presentation” section of GAN’s website (http://gan.com/investors/results-and-presentations).
GAN: Overview
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20190329005101/en/
GAN
VP Investor Relations &
Analytics
+1
310 384 1132
[email protected]
Nominated Adviser, ESM Adviser & Joint Broker
+353 1 679 6363
Liberum
Joint Broker
+44
20 3100 2000
US Investors | The Equity Group
+1
212 371 8660
[email protected]
+44
20 7933 8780
[email protected]
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