GAN posts strong revenue in first quarter
GAN has reported a 263% revenue rise of $27.8 million for the first quarter 2021. The increase was driven by the $14.3 million contribution from Coolbet.
B2B segment revenues were up 76% to $13.5 million, driven by a RMiG increase of 68% to $10.5 million and a SIM increase of 114% to $3.0 million.
B2C segment revenues of $14.3 million, derived from Coolbet’s existing and proven international sports betting and casino gaming operations. Key performance indicators remain at exceptional levels.
Segment gross profit of $19.1 million versus $6.0 million. The 220% increase was driven by an $8.3 million contribution from the acquisition of Coolbet to our B2C segment, plus strong organic growth and new customer launches within our B2B segment.
Dermot Smurfit, CEO stated: “We started the new year on a strong note with 263% top-line growth year-over-year, fueled by both organic growth as well as the Coolbet acquisition. We completed a record five RMiG partner launches during the first quarter, highlighted by our groundbreaking launch and strong results in Michigan, plus our exciting new partnerships with Wynn and Churchill Downs.
We carried that momentum into the second quarter, with now 10 launches year-to-date, exceeding all of 2020. Most notably, we completed a successful multi-faceted transition onto our platform for Churchill Downs’ TwinSpires branded sports betting and iGaming across five states leveraging our scarce multi-State ‘One Account, Any Product, Any State’ technical capability. Additionally, we secured a long-term exclusive content deal with Ainsworth to further enhance our market offering.
This key partnership will increase the Company’s overall ‘take rate’ on Gross Operator Revenue from iGaming, and help us secure a fast-growing share of existing iGaming revenues from B2C Operators who are not already partners of GAN. Looking ahead, our pipeline continues to expand with new opportunities for our industry-leading B2B offering here in the U.S. Lastly, we are thrilled with Coolbet’s strong contribution this quarter and how seamlessly we’ve been able to integrate the team. Coolbet offers a dual growth platform with our anticipated launch of their B2B sportsbook engine in the U.S. later this year and its exciting B2C international growth opportunity.”