GAN plc Reports 2017 Annual Results
March 29, 2018
LSE: GAN ISE: GAME
Maiden full year clean EBITDA profit
The full Chairman’s Report and Financial and Operational Review are available on GAN’s website at www.gan.com.
Financial Overview
- Gross Income of £41.1m (2016: £31.7m) an increase of 30% on 2016
- Net Revenue of £9.1m (2016: £7.8m) an increase of 17% on 2016
- Clean EBITDA1 profit of £0.5m (2016: loss of £0.9m)
- Loss before tax of £4.2m (2016: £5.2m) and loss per share of £0.05 (2016: £0.06)
- Loss after tax of £3.5m (2016: £3.8m)
- Cash and cash equivalents at the end of the year of £2.7m (2016: £3.2m)
- Net Assets at the end of the year of £7.6m (2016: £10.9m)
-
Raised £2m in
April 2017 through an unsecured 9% convertible loan note
Strategic & Operating Developments
- Launched Simulated Gaming™ in the US for five new US casino clients (2016: three)
-
Signed two US casino clients for real money Regulated Gaming in
New Jersey and European markets, respectively -
Regulation of Internet gaming in
Pennsylvania completedOctober 30, 2017 becoming the fourth US State to regulate Internet gaming - Continued delivery of Betfair’s fast-growing New Jersey Internet casino business BetfairCasino.com supported by GAN’s Internet gaming platform, content & supporting services
-
GAN’s US patent number 8,821,296 (“Patent”) for linking a patron’s
rewards account to their Internet gaming account successfully licensed
for real money Internet gaming for the third time to a US casino in
New Jersey - Continued investment in US infrastructure: licensing, offices and people
-
Post period end preparations underway for GAN to launch
Parx Casino inPennsylvania for Internet gaming with the Pennsylvanian Internet gaming market anticipated to commence in H2 2018 -
Post period end strategic relationship with SBTECH for delivery of
Internet sports betting to selected existing and new US clients,
conditional on the
Supreme Court of the US repealing in full or part the long-standing Federal US ban on sports betting outside theState of Nevada - The Company monitors its financing on an ongoing basis and, post period end, having noted in particular the regulatory developments in respect of real money Internet gaming in the US, is currently considering options to enable it to respond to the opportunity that it considers these developments represent
“2017 saw GAN deliver its first full year of positive EBITDA since 2013 following a lengthy investment cycle to position GAN as a market leader in the US casino Industry delivering Internet gaming solutions for real money Regulated Gaming and Simulated Gaming which is deployed in advance of regulation. GAN’s performance to date in 2018 is in line with our expectations.
GAN has continued to position its business to capture growth in
emerging online gaming markets in the US. 2017 saw significant progress
with the launch of five new clients of Simulated Gaming™, together with
a number of significant commercial and strategic developments the most
significant of these was the passage into law of legislation on
New Jersey’s Internet gaming market out-performed our full year
expectations with gross gaming revenues up 30% year on year to
The States of
Throughout 2017 GAN’s Simulated Gaming™ enterprise solution continued to prove its ability to support the core on-property gaming business of US casino clients. GAN’s increasing body of evidence demonstrated that Simulated Gaming™ together with GAN’s US-patented reward points integration system is a highly cost-effective marketing tool for land-based casinos, which increases on-property gaming rather than cannibalising it. GAN’s Simulated Gaming is proven to reactivate long-term lapsed patrons on-property, increase on-property visitation by existing patrons and generate incremental income online for GAN and the casino.
Simulated Gaming™ continues to represent a significant US market opportunity which is immediately addressable and not contingent on the pace of regulation nor dependant on US casino clients’ making material investment in digital user acquisition as the majority of Simulated Gaming™ revenues are derived from the casino clients’ existing patrons. Marketing Services provided to US casino clients represents a significant opportunity for GAN not only to increase professional service fees but also to support casino clients in scaling their Simulated Gaming™ revenues by delivering enhanced patron marketing.
GAN’s US Patent for linking US casino patrons’ rewards account to
their Internet gaming account held within an Internet gaming system
(marketed as the iBridge Framework™) withstood an ex parte challenge in
2017 and was re-confirmed as valid by the US Patent Office in H1 2017.
GAN’s Patent licensing program has made substantial progress in H2 2017
by placing diverse US casino operators on notice of GAN’s US-patented
Intellectual property rights and inviting commercial licensing
discussions which are ongoing. We remain highly confident in the
significant strategic value to GAN of this Patent which has now been
licensed three times for real money Internet gaming in the States of
We also remain confident in our prospects for 2018 and beyond. For
2018, we forecast material growth of both Simulated Gaming™ and real
money Internet gaming undertaken for US clients in
We believe your Company has developed considerable momentum in the US market and that the Company is well-positioned to secure additional profitable opportunities from incremental US States which regulate real money Internet gaming over time.”
Results Conference Call
The GAN management team will host a conference call for analysts &
institutional investors at 16.00 BST (11.00 ET /
View source version on businesswire.com: https://www.businesswire.com/news/home/20180329005863/en/
For further information please contact:
GAN
Chief Executive Officer
+44 (0) 20 7292 6262
[email protected]
or
Davy
Nominated
Adviser, ESM Adviser & Joint Broker
+353
1 679 6363
or
Liberum
Joint Broker
+44 20 3100 2000
or
US Investors |
The Equity Group
+1 212 371 8660
[email protected]
or
+44
20 7933 8780
[email protected]
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