Igaming software firm GAN has posted its 2020 Q3 financial update, showing revenue ahead by $4.8m to $10.3m, up 86% year-on-year, with results cited as being in line with expectations.

Real money internet gaming (RMiG) revenue increased by $3.6m during the quarter, primarily attributable to additional software as a service (SaaS) and hardware revenue driven by deployments related to upcoming customer launches in Michigan

Simulated gaming revenue increased by $1.2m, led by new customer launches and continued momentum, said the firm. Gross profit for the third quarter of 2020 was $6.4m versus $2.4m year-on-year, while RMiG gross profit increased by $3m. Simulated gaming gross profit increased by $0.7m. 

Net loss attributable to equity holders was $4.1m compared with $1.8m year-on-year, with adjusted Q3 EBITDA of $(0.1)m, compared to $(0.4)m for the third quarter of 2019. The increase was primarily driven by growth partially offset by higher administrative expenses.

Dermot Smurfit, CEO of GAN stated: “We built strong momentum in the third quarter and our results were in-line with our expectations. We added multiple new RMiG and simulated gaming customers over the last several months, demonstrating the unique and highly differentiated capabilities of our SaaS platform for integrated igaming and online sports betting.” 

Turning to stateside developments, he told investors: “Our new customer pipeline in the US remains strong and we’re building exciting relationships that we believe have the ability to scale across our customers’ casino portfolios as more states come online in the future. 

“Our business remains strongly positioned to leverage the momentum of online sports betting and igaming, which is clearly accelerating across the globe. I am also excited to announce the strategic acquisition of Coolbet, as we continue developing and investing in our capabilities. Coolbet is a best-in-class RMiG provider, with both online sports betting and igaming offerings. 

“The acquisition will allow GAN to provide near-turnkey capabilities in online sports betting, rounding out our B2B platform offering in the US. We view this acquisition as the next strategic move in our growth strategy as we look to diversify our business model and geographic exposure.”

On the outlook, Smurfit said: “We look forward to the potential launch of multiple customers in Michigan, which are anticipated to go live in December. We are reiterating our previous outlook of $37m to $39m in revenue this year, which includes IP licensing related deals subject to timing variability. Our pipeline remains robust, and we expect to see gross operator revenue accelerate as we progress through 2021.

“We also look forward to finalizing the acquisition of Coolbet in early 2021 and believe it will bring advantageous scale, geographic diversity and opportunity, as well as near-turnkey capabilities in online sports betting that will help us further differentiate and enhance our US platform. We remain confident that our unique position, differentiated solutions, strong management team, and solid financial position will enable us to continue to grow throughout 2021 and beyond.”