GAN today reported its unaudited financial results for the quarter ended June 30, 2022.Total revenue was $35.0 million versus $34.4 million, up 2% compared to the prior year quarter.

The increase from the prior year quarter was driven by strong growth in the Company’s B2B segment, which was partially offset by a decrease in the B2C segment driven by lower sports margin and the unfavorable impact of foreign currency fluctuation.

B2B segment revenue was $14.2 million versus $10.4 million. The 36% growth was driven primarily by an increase in development services and other revenue, which include hardware sales and organic growth in US real money iGaming

B2C segment revenue was $20.8 million versus $24.0 million. The handle, or amount wagered, increased 8% on organic demand for the Coolbet product offering. Segment revenue was impacted by a 260-bps decrease in the sports margin from the prior year period to 7.1% and a $2.4 million impact from the unfavorable impact of foreign currency fluctuation.

Gross Profit was $24.5 million versus $24.0 million. The increase was primarily driven by strong growth in B2B revenue, which was partially offset by a decrease in B2C revenue from the aforementioned factors.

Dermot Smurfit, CEO of GAN stated: We continue to make strong progress toward the launch of GAMESTACK 2.0 and GAN Sports in U.S. markets as we position GAN for improved performance in the face of a difficult macroeconomic environment. Our cost saving initiatives and other productivity measures are working and will enhance our long-term profitability profile. Both our B2B and B2C segments continue to demonstrate unique technology and capabilities, as customer adoption and new launches remain on a positive trend. GAN is now licensed in 16 U.S. states, Canada, and has begun the initial stages of entering the Mexican market.”

“We are excited about the momentum behind our key initiatives, such as Super RGS, and the customer feedback surrounding the uniqueness and value of our exclusive gaming content has been highly encouraging and validating. We expect a robust launch schedule for GAN Sports throughout the U.S. in 2023, which will further our position as a leading provider of a true omnichannel gaming experience.