GAN Posts Q2 Results, Shares Optimism about H2

North American B2B and B2C iGaming company GAN has posted its financial result for the second quarter of the year. The period ended June 30 marked another quarter of mixed metrics.

Following its suboptimal performance in Q1, the company posted Q2 revenue of $33.8 million, marking a slight year-on-year decrease from last year’s $35 million.

The company’s B2B revenue plummeted from $14.2 million to $9.9 million because of a decrease in contractual revenue rates. Luckily, the decline in the B2B vertical was offset by an increase in B2C revenue, which increased from $20.8 million in Q2 2022 to $23.9 million in Q2 2023.

The company’s unaudited adjusted EBITDA was $2 million in Q2 2023. This is a noticeable increase from the $1.35 million recorded in Q2 2022.

GAN’s net loss for the period was $18.4 million, a significant year-on-year decline from the $38.3 million the company lost in Q2 2022. Operating expenses for the period were also significantly lower at $32.8 million in Q2 2023 against $62.3 million during the same period last year.

Furthermore, the company reported cash and cash equivalents of $43.4 million as of June 30.

In Q2 2023, GAN’s B2C active customers decreased slightly because of the company’s underperformance in the LATAM region and its decision to leave the Ontarian iGaming market.

In the meantime, the company expanded its presence in the United States, launching its B2B betting technology with WynnBET in six states, namely Arizona, Colorado, Indiana, Louisiana, Tennessee and Virginia. This brings the total number of states where GAN Sports operates to nine.

CEO Smurfit Braces for Improved Performance in H2

GAN’s chief executive officer, Dermot Smurfit, commented on his company’s performance in the second quarter of the year. He praised the execution of the company’s business plan and noted that GAN’s international B2C operations continue to go from strength to strength.

Smurfit also praised the rollout of the company’s GAN Sports division in multiple markets and the progress on the new GameSTACK 2.0 version of the platform. The CEO added that GAN Sports’ presence in nine US states and the company’s international momentum lead him to expect significant improvements in the company’s performance in the upcoming half of the year.

Smurfit also teased that the company has received “indications of interest” from bidders that might seek to acquire a part of GAN or GAN in its entirety. The CEO said that a special committee will evaluate those alternatives.

However, no agreement has been reached as of yet, Smurfit emphasized.