GAN reports jump in revenue to $921m
GAN today reported its unaudited financial results for the fourth quarter and year ended December 31, 2021.Total revenue of $30.5 million versus $32.3 million in the prior quarter.
B2B Gross Operator Revenue totaled $921.1 million versus $545.2 million last year, a 69% increase. The increase was driven by the launch of a client in Pennsylvania, organic growth, and the launch of a new client in Michigan.
Recurring platform and content fees increased $0.9 million, which was offset by a decrease of $0.8 million in development services and other as primarily driven by hardware sales. Gross Profit of $19.0 million versus $21.5 million. Gross profit decreased primarily due to the decrease in sports margin within the Company’s B2C segment during the fourth quarter.
Dermot Smurfit, CEO of GAN stated: “Our fourth quarter financial results were adversely affected by the volatile sports margin in our B2C segment consistent with other International operators, which was partially offset by continued strong new customer growth. However, our fourth quarter was highlighted by strategically important wins for GAN along with new state launches for clients such as FanDuel in Connecticut and our entrance into Ontario when iGaming and online sports betting officially goes live. We also completed the successful acquisition of Silverback Gaming to further grow our SuperRGS portfolio of original content. We have not lost sight of the fact that we delivered incredibly strong revenue growth in 2021, made numerous strategic steps toward solidifying our future, and are projecting another year of very strong revenue growth as well as much improved profitability as we achieve better scale.