GAN Limited has published its Q1 2022 financial results, with CEO Dermot Smurfit noting that the group expects “significant” year-on-year growth thanks to its “encouraging start” to the year.
The firm reported record Q1 revenue of $37.5m, up 38% YoY (Q1 2021: $27.1m) after strong increases across both B2B and B2C segments.
B2B segment revenue grew by 2.3% to $13.1m (Q1 2021: $12.8m), while B2C segment revenue increased by 70.6% to $24.4m (Q1 2021: $14.3m) thanks to the group’s Coolbet sports betting and online casino brand.
The group’s gross profit came in at $25.8m, a 40.2% gain YoY (Q1 2021: $18.4m), with a net loss of $4.5m, an improvement on the previous year’s $5.6m). Adjusted EBITDA rose exponentially to $3m (Q1 2021: $500,000), due to higher revenues and lower operating expenses.
Smurfit commented: “We delivered an encouraging start to 2022 driven by organic revenue growth in both our operating segments coupled with cost rationalisation efforts to deliver strong growth in adjusted EBITDA.
“We continue to demonstrate the value of our integrated B2B and B2C portfolio, soon to be joined on one unified platform and our ability to deepen our presence in both new and established markets as we add to our offering.
“In the state of Michigan, our presence began with supporting a tribal operator and has evolved to now power both igaming and online sports betting and features our Super RGS platform content as well.
“The evolution of our platform in Michigan is a perfect example of our competitive offering and its position in the market as we prepare for future state launches.”
Looking ahead, GAN affirmed its 2022 revenue expectation of $155m to $165m with an adjusted EBITDA between $15m to $20m. Thanks to the upcoming World Cup and international sports calendars, the group believes a strong second half of the year is possible.
“In addition to our planned expansion to new states in the US, we successfully launched in Ontario on April 4 to support online sports betting and igaming in the province and launched PlayEagle.com for Soaring Eagle Casino & Resort in the state of Michigan in April,” added Smurfit.
“We also remain excited about the momentum behind our GAN sports and international B2C strategies as well as operator reception to our Super RGS content and offering.
“We expect each of these efforts to drive significant year-over-year revenue growth which, when coupled with our laser focus on profitability, will yield much better scale and improved margins compared to last year.”
