GAN publishes 2020 results and predicts strong growth in 2021

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Igaming software provider GAN has published its Q4 and full-year operating and financial results for the period ended December 31, 2020, with full-year revenue up 17% to $35.2m and annual gross operator revenue ahead by 73% to $545m year-over-year.

Real money Internet gaming grew 6% to $25.6m in 2020, or 28% excluding B2C-related revenue that ceased in 2020, while simulated gaming revenue saw an increase of 66% to $9.5m during the year. 

GAN also launched six new client partnerships during the period without any new state markets, including two RMiG and four SIM partners. Seven new client deals were secured, including the landmark Wynn Resorts 10-year deal in Michigan and a multi-state deal with Churchill Downs, all of which bring multi-year, recurring revenue opportunities.

Other operational highlights included the acquisition of Coolbet, $167.6m in capital raises and the addition of over 150 full time employees to support future growth. Integration of Coolbet’s sports betting technology and international B2C operations is, said GAN, on schedule for a mid-year launch. 

The company added that it expects full year 2021 revenue of $100m – $105m, including first quarter revenue of $24m – $25m.

CEO Dermot Smurfit stated: “2020 was a highly successful, foundation-building year for GAN. We expanded our top-line, doubled our new client launches, signed numerous new customers that we believe will support stable and growing recurring revenue, and rounded out our product portfolio through multiple new content partnerships and the critical acquisition of Coolbet. 

“Our annual revenue increased 17% in 2020, but the key recurring components of that, our US RMiG and Simulated offerings, saw revenue growth of 92% and 77%, respectively. We also invested in our infrastructure and have fully converted to US GAAP during the fourth quarter, which completed our journey to becoming a public company listed and based in the US. 

“Most importantly, we filled a significant need in our product offering through Coolbet’s best-in-class sportsbook engine, which positions GAN as a full-service B2B solution for real money gaming in the US and as a vertically integrated B2C player in select international markets.”

“We entered 2021 with a strong foundation to build upon and positive business momentum. The first quarter of 2021 has started particularly strong as we launched multiple clients in the state of Michigan, which exceeded both our expectations and those of our customers. 

“We also signed our first sportsbook engine customer during the first quarter, and continue to entertain significant interest from both current and prospective clients for our new sportsbook offering and its associated managed trading services. Our integration of the Coolbet team and technology are on schedule and we continue to forecast a midyear launch of the B2B sportsbook technology and service.” 

On the outlook, CFO Karen Flores noted: “Our first quarter has started off very strong across all of our business lines. This should support strong growth in 2021 and we expect to almost treble our top-line performance, inclusive of strong organic growth and Coolbet’s contribution. We also expect to drive operating leverage that will yield stronger profitability results year-over-year. 

“We remain confident that we will continue to onboard new customers as well as deepen our relationship with our existing customers, and we look forward to the launch of new states in 2021 to further support our growth trajectory. In the meantime, we are acutely focused on the integration of Coolbet to round out our B2B offering. We maintain a strong financial position and have a differentiated IP portfolio and management team that will continue to support and drive our multi-prong growth strategy.”