GAN expects earnings to beat market expectations
Gambling software company anticipates earnings of between £7m and £8m
Dermot Smurfit suggested that 2020 would be “yet another very exciting year”. Photograph: iStock
GAN, the online gaming software company formerly known as Game Account Network, expects trading for 2019 to be ahead of market expectations with earnings anticipated to be in the range of £7 million to £8 million, a trading update from the company said.
The Dermot Smurfit-led business told the London Stock Exchange, where it is listed, that it will likely post revenue growth of between 115 per cent and 120 per cent over the previous year, implying revenue in the range of £22.7 million and £23.3 million. Earnings will rise by between 30 per cent and 35 per cent, it said.
GAN, which supplies internet gambling software and licences principally to land-based US casino operators, said the better-than-anticipated results follow higher-than-expected demand for internet gambling in both New Jersey and Pennsylvania, and a launch of internet sports betting in Indiana in October, amongst other factors.
GAN, which on Friday formally initiated plans for a US stock exchange listing, also announced that it had signed up a new client for its simulated gaming software, the Snoqualmie Tribe, which owns and operates a casino near Seattle.
Company broker Davy noted that revenues and profits had progressed strongly with the latter “substantially ahead of our forecast”.
GAN also flagged its plan to trade on the Nasdaq “as soon as reasonably practical”.
“As a result of this US listing process, and associated SEC compliance obligations relating to forward looking statements, no outlook can be provided at this time,” it said.
But Mr Smurfit suggested that 2020 would be “yet another very exciting year” for GAN with its “recent new client announcements, continued focus on acquiring additional new clients and expectations for further real money internet gambling legislation to pass in new states in the US”.
Davy analysts Michael Mitchell and Jack O’Halloran said the company “appears in good stead as we enter another important year for the US market”.