GAN praises Latam and European B2C growth as Q2 revenue jumps 316%
Nasdaq-listed supplier and operator reduces net losses as adjusted EBITDA rockets 170%
GAN has reported a 316% year-on-year increase in total revenue for the second quarter of 2021, with revenue rising to $34.6m (£25m).
The online casino and sports betting provider and operator attributed the rise to strong growth in its B2C segment, primarily in the Latam and Northern European regions, with sports results “benefitting from higher-than-expected” sports betting margin.
GAN’s B2C segment revenue hit $24m during Q2, up 68% on a quarter-on-quarter basis, with Q2 including the Copa America and Euro 2020 tournaments.
The firm’s B2B segment revenue rose by 28% year-on-year to $10.6m, a figure which included $3m of patent licensing revenue.
Company adjusted EBITDA soared by triple digits (183%) year-on-year to $4.6m, with higher revenue offsetting company investments in personnel and technology made during the period.
Consolidated gross profits grew by 27% quarter-on-quarter to $24.3m, with net losses narrowing from $9.6m in Q2 2020 to $2.7m in Q2 2021.
GAN has reiterated current 2021 revenue guidance of $125-$135m, reflecting year-on-year growth of 270%.
GAN CEO Dermot Smurfit hailed a “very strong” second quarter amid a company-wide focus on scaling the business across B2B and B2C markets.
“We have now supported 11 successful real money gaming launches year-to-date, including the highly successful and multi-faceted transition of Churchill Downs onto the GAN platform during the second quarter,” Smurfit explained.
“Most importantly, we made great progress in executing our long-term growth strategy during the first half of the year.
“This included significant development work in the integration of our new sportsbook engine into our B2B product suite, which we plan to debut at Global Gaming Expo this fall,” he added.
Last November, GAN acquired Vincent Group, the parent company of Malta-licensed Coolbet, for €149m in order to kick-start its in-house sportsbook technology capabilities.
The GAN CEO also highlighted in the Q2 earnings report two exclusive content deals with operators Ainsworth and Incredible Technologies, which GAN concluded in Q2, as signposting potential further US growth.
“We continue to emphasise the importance of possessing exclusive content and an industry-leading library of the most recognisable and popular retail games,” Smurfit explained.
“These efforts and agreements will allow us to grow our take rate from US igaming revenue and position GAN as a content supplier of choice for large operators with diverse content line-ups,” he added.