GAN announces strong preliminary Q2 results

GAN this week announced strong preliminary results for the second quarter of 2021 driven by its new Business-to-Consumer segment, which comprises Coolbet.

Based on preliminary financial results, the company currently expects to report second quarter revenue of $34.0 million to $35.0 million and positive Adjusted EBITDA ranging from $3.0 million to $7.0 million, as higher than expected revenue more than offset strategic investments in talent and technology. The Company is also increasing full year revenue guidance to a range of $125 million to $135 million.

The company’s results were primarily driven by stronger than expected performance from the company’s B2C offering in Latin America and Northern Europe, with sports results benefitting from higher-than-expected sports betting margin (calculated by dividing Gross Gaming Revenue by Amount Wagered) of 9.7% for the quarter as compared to 6.8% in the first quarter, while also maintaining marketing spend efficiency. The company noted that its revenue growth accelerated during the second half of the quarter driven by two major international sporting events.

Dermot Smurfit, CEO of GAN, commented: “Momentum has carried through the second quarter and driven continued sequential top-line growth for the business. The B2B business is performing in-line with our expectations and continuing to win new clients here in the U.S. while the B2C business is capitalizing on the Latin American market opportunity, equipped with a highly social sports offering delivering viral customer acquisition."