The US gaming industry helped GAN to post a 145% revenue increase year-on-year during the first half of 2019 to €12.7 million.
UK.- The first half of 2019 was highly successful for GAN, which reached a 145% revenue increase year-on-year. The company reported a €12.7 million figure and a €3.3 million EBITDA (3% up).
GAN explained revenue for real money gaming grew 103% to €4.8 million and virtuals’ 8% to €2.6 million. Furthermore, it showed expenses going up 31% to €11.8 million, driven by distribution costs of €7 million.
The company announced an expansion plan for the US back in January. Since then, it helped to launch online sports betting in New Jersey and Pennsylvania.
That’s why GAN says the US market pushed the majority of its revenue growth. That, after it generated 78% of net revenue for the period, with 21% coming from Europe.
CEO’s recent comments
Dermot Smurfit, CEO of GAN, recently highlighted the company’s performance. After their 2Q figures reveal, he said that the extraordinary growth rate experienced last quarter reinforces the company’s confidence in the US strategy executed by GAN after the repeal of PASPA. “[As well as] our Platform technology’s ability to scale to meet the needs of our diverse clients,” he added.
“The rapid rate at which states continued to legalise internet gambling in Q2 continues to validate our confidence in the US market opportunity and the seasonality in Q2 was both anticipated and exaggerated by US online sports betting.
“A dedicated Head of Investor Relations Mr Jack Wielebinski will lead our US investor relations efforts as well the implementation of an all-new GAN.com website before year’s end. which will include substantial content and features designed both to serve existing investors and better-inform prospective investors on GAN’s exciting equity story, products and services.”