GAN sees revenue rise 38%
GAN today reported its unaudited financial results for the quarter ended March 31, 2022.
Total revenue was $37.5 million versus $27.1 million, up 38% compared to the prior year quarter. The strong increase from the prior year quarter was driven by organic growth in the B2C and B2B segments.
B2B segment revenue was $13.1 million versus $12.8 million. The prior year period included $3 million in patent license revenue which did not recur during the current period. Recurring platform and content fees increased 17% to $10.7 million.
B2C segment revenue was $24.4 million versus $14.3 million. The handle, or amount wagered, increased 57% on strong organic demand for the Coolbet product offering.
Gross Profit of $25.8 million versus $18.4 million. The increase was primarily driven by strong growth in revenue. Net loss of $4.5 million versus $5.6 million.
Dermot Smurfit, CEO of GAN stated: “We delivered an encouraging start to 2022 driven by organic revenue growth in both our operating segments coupled with cost rationalization efforts to deliver strong growth in Adjusted EBITDA. We continue to demonstrate the value of our integrated B2B and B2C portfolio, soon to be joined on one unified platform and our ability to deepen our presence in both new and established markets as we add to our offering. In the state of Michigan, our presence began with supporting a tribal operator, and has evolved to now power both iGaming and online sports betting and features our Super RGS platform content as well. The evolution of our platform in Michigan is a perfect example of our competitive offering and its position in the market as we prepare for future state launches.”
“In addition to our planned expansion to new states in the U.S., we successfully launched in Ontario on April 4th to support online sports betting and iGaming in the province and launched PlayEagle.com for Soaring Eagle Casino & Resort in the state of Michigan in April. We also remain excited about the momentum behind our GAN Sports and International B2C strategies as well as operator reception to our Super RGS content and offering. We expect each of these efforts to drive significant year-over-year revenue growth which, when coupled with our laser focus on profitability, will yield much better scale and improved margins compared to last year.”