GAN has lauded continued momentum in leading the group to a strong start to the year, as the supplier also obtains the exclusive online rights to all current and future Ainsworth Game Technology online titles, for an undisclosed amount.
Total revenue for the first quarter, ending March 31, 2021, soared 263 per cent to $27.8m (2020: $7.7m), with B2B, driven by real money internet gaming, up 76 per cent to $13.5m (2020: $7.6m), and B2C, derived from its Coolbet acquisition which closed in January 2021, coming in at $14.3m.
Net loss for the period is reported at $4.5m versus income of $700,000 one year earlier, due to increased amortisation related to acquired intangibles from the Coolbet acquisition ($2.9m), increased share-based compensation ($1.2m), and operating expenses related to marketing, organisational expansion to meet market and customer demand, and costs related to regulatory requirements.
A decrease in adjusted EBITDA to $1.7m versus 2020’s $2.5m was driven by increased operating costs in the current year related to regulatory requirements, and organisational expansion to meet market and customer demand.
Karen Flores, CFO of GAN, said of the group’s updated outlook for the year, added: “Our first quarter financial results exceeded our expectations, and the outlook remains positive for the balance of 2021. We are increasing our full year revenue guidance to a range of $103m to $108m.
“As we gain scale, become more efficient, and move through a period of significant investment for growth, we anticipate to drive improved profitability. These factors will yield better operating leverage across the business over the long-term and further bolster our strong financial position as we execute our growth strategy, support new and existing customer launches and launch the B2C sportsbook technology later this year.”
Furthermore, the company has also rolled-out a multi-year partnership alongside Ainsworth, which has seen GAN secure more than 70 active gaming titles, with the portfolio anticipated to grow to nearly 200 over the term.
This will provide the group’s platform and RGS clients’ with an exclusive portfolio of online casino games, with Ainsworth to only utilise the aforementioned means to distribute its igaming library in the US.
Jeff Berman, CCO of GAN, explained: “Today’s announcement recognises the benefit of marrying our distribution to Ainsworth’s content and is an important step toward disrupting existing distribution channels in the US online gaming space.
“This agreement ensures that GAN possesses differentiated and exclusive access to what we believe will be an ever-growing focus on recognised retail gaming content naturally sought-after by Americans engaged in playing online casino games.
“Our goal is to continue to build a leading portfolio of US casino games to benefit our diverse clients and establish ourselves as exclusive providers of premier US content. We are excited to extend our long-standing relationship with Ainsworth, as they have built a global reputation for developing award-winning games for both the online and land-based channels.”
Jason Lim, general manager of online of Ainsworth, added: “Our agreement with GAN is a testament to their leading online distribution across the US igaming states as well as our industry-leading collection of slot games and emphasizes the importance of exclusive gaming content in a competitive industry.
“Games such the QuickSpin brand of wheel games, Pan Chang, Lucky Break and Kanga Cash offer exciting and unique experiences for our players around the world. We are thrilled to be partnering with GAN to further solidify each of our leading positions in the industry.”
