Game Account Network has lauded operational resilience in the face of COVID mandated casino closures as the firm reports substantial growth in the year’s second quarter.
Reiterating full-year 2020 revenue guidance of between $37m and $39m, the solid performance caps a strong week for the group after a series of developments made alongside Cordish Gaming Group, Route 66 Casino and Penn National Gaming.
Revenue in Q2 grew 99 per cent to $8.32m (2019: $4.17m), driven primarily by customer launches including Parx Casino and FanDuel real money internet gaming in Pennsylvania and New Jersey.
The US accounted for 85 per cent of revenue with $7.04m, with Italy contributing $1.23m (2019: $1.03m) and the UK, contributed from WinStar Casino which withdrew from the collaboration effective December 31, 2019 added $33m. The ‘rest of the world’ segment dropped from $16m to $11m.
Gross profit increased significantly to finish the quarter at $5.45m (2019: $976m), net loss widened from $1.78m to $8.61m and adjusted EBITDA increased to $1.9m compared to a loss of $200,000 in the prior year’s quarter.
Active player days and average revenue per daily active user increased 18 per cent and 100 per cent, respectively, primarily attributable to the continued expansion of existing US customers and business, as well as the result of new states passing legislation.
For the first half of the year revenue increased 16.1 per cent to $15.9m (2019: $13.7m), gross profit rose 57.7 per cent to $10.5m (2019: $6.68m) and net loss swung to $7.99m from a profit of $619m.
Dermot Smurfit, CEO of GAN, explained: “We were pleased to achieve revenues of $8.3m during the second quarter of 2020, a period during which nearly all of our land-based casino customers were forced to close their physical operations and when most major sporting events were cancelled as a result of the global pandemic.
“Our business has proven resilient to these outside forces in recent weeks, and we believe GAN can greatly contribute to both our customers’ success and the accelerated secular shift to igaming as casino operators continue to be impacted by the pandemic.
“The substantial growth in our business is a result of our ability to deliver results for clients, such as Parx Casino, whose Pennsylvania online casino gross gaming revenues reached $19.3m in Q2 including an all-time monthly high of $7.6m from their online casino for the month of May, according to regulatory reports and Eilers & Krejcik.
“We achieved record KPIs during the second quarter of 2020, and our operational model continues to demonstrate strength, particularly in the current market environment.”
Anticipating a consistently strong online casino showing throughout the remainder of the year, GAN asserts that it has secured significant new customers that will enter Michigan on the firm’s platform in Q4.
The company also says that it continues to be the exclusive online gaming provider of FanDuel’s online casino operations throughout the US, and anticipates launching in both West Virginia and Michigan in the immediate term.
GAN did, however, acknowledge once significant loss with the firm saying that it “does not anticipate sports gaming revenues from FanDuel after August 31, 2020”. This, it is said, is due to FanDuel deploying their proprietary digital wallet for its sports gaming business.
“Last week we launched Cordish Gaming Group’s new ‘PlayLive!’ branded Internet gambling business in the Commonwealth of Pennsylvania, a particularly notable achievement as we launched just 72 days after contract signing,” Smurfit continued.
“Additionally, yesterday we activated simulated gaming for Penn National Gaming, one of the largest casino operators in the United States. We are anticipating activation of the Michigan market early in the fourth quarter, and are currently preparing to launch three operator clients, which we believe will drive significant market share.”