GAN’s third-quarter results in line with expectations

Finance News

GAN has posted its third quarter results. Revenue was $32.3 million versus $34.6 million, a 7% decrease driven by sports seasonality and lower sports betting margins than the prior quarter, despite an increase in the number of active customers.

B2B segment revenue was $11.2 million versus $10.6 million, driven primarily by an increase in hardware sales during the third quarter. B2C segment revenue was $21.1 million, a $2.9 million decrease from $24.0 million, driven by lower sports betting margins as event results favored customers during the third quarter. The decrease was partially offset by organic growth in casino and poker revenues within the segment. Gross profit decreased primarily due to decreased margins within the Company’s B2C segment. Net loss was $7.9 million versus net loss of $2.7 million.

Dermot Smurfit, CEO of GAN stated:“Our third quarter financial results were in line with our expectations as our B2B segment revenues rose 5% compared to the prior quarter, while our B2C revenues experienced seasonality following a record second quarter.

We added the iconic Treasure Island Hotel & Casino to our growing list of SIM clients during the quarter, and continued to demonstrate the value of our ‘multi-state, one app’ capability as we launched Churchill Downs’ online sports betting operation in Arizona. We also built upon our existing relationship with FanDuel, helping to deliver their iGaming platform in the state of Connecticut subsequent to quarter-end. Lastly, we continued to allocate our capital spending toward its most productive uses – ensuring it is deployed behind our people and technology, as we opened a new tech hub in Miami to leverage a rich and growing technology-oriented labor pool.”