GAN upbeat despite 31% revenue slump
London-based supplier continues to invest in Simulated Gaming product as profits and revenues tumble
GAN remains confident in the long-term potential of its Simulated Gaming product despite posting a 31% drop in net revenues in the first half of the year.
Gross income for the six-month period ended 30 June remained flat at £13.4m, but net revenue fell from £4.2m in H1 2014 to £2.9m this year due to delays in securing additional system sales.
GAN, which recently rebranded from GameAccount Network, also saw clean EBITDA tumble from a loss of £0.4m last year to a loss of £1.5m during the first six months of 2015.
The supplier said it remained confident in its Simulated Gaming product, which saw revenues increase 500% to £1.2m YoY, and would continue to invest in the platform.
“We have continued to focus on building a substantial recurring revenue base to offset this investment and achieve future profitability,” Dermot Smurfit, GAN chief executive, said.
“The rapid growth in Simulated Gaming revenues is particularly important as we believe over time they will substantially compensate for the slower than expected pace of the development of RMG in the US,” he added.
GAN has signed a raft of deals with US casino operators including the Maryland Live! Casino, and the powerful San Manuel tribe in California, with both on track to launch in Q4.
They have also launched simulated gaming with the Parx Casino in Pennsylvania, and power Betfair’s real-money gaming platform in New Jersey.
GAN’s share price was down 12% to 48.18p at the time of writing.