Gambling tech company GAN increases revenue 30%
Firm run by Dermot Smurfit junior also saw operating costs rise 12%
Dermot Smurfit, CEO of GAN, and Desmond Glass, chief financial officer of GAN
GAN, the gambling technology provider run by Dermot Smurfit jnr, recorded a 30 per cent increase in revenue last year, new figures show.
The company, formerly known as GameAccountNetwork, published its full year results for the 12 months ended December 31st, 2016, on Tuesday.
It said net revenue totalled £7.8 million (€8.9m), which was up from £6 million in 2015. Operating costs grew 12 per cent. In addition, GAN recorded an Ebitda (earnings before interest, taxes, depreciation and amortisation) loss of £900,000, which was a 70 per cent reduction on the £3 million in 2015.
Losses before tax totalled £5.2 million, which were down from £5.6 million in 2015. After tax, losses were £3.8 million compared to £5 million in 2015.
A Davy analyst said GAN’s earnings announcement was “in line with expectations” with the group’s losses narrowing year-on-year as its simulated and real-money gaming business in the US continued to grow.
“This positive operational gearing should continue in 2017 with the benefits of greater scale, such that the group is aiming to be free cash-flow positive by the end of this year,” he said.
“In the first instance, that target is the priority; any potential move by Pennsylvania to regulate online gaming would obviously provide a fillip to the investment thesis given that the group is well positioned in that state, however, there is a way to go yet before such legislation is passed into law.”
GAN chief executive Dermot Smurfit said the company “remains confident” in terms of its prospects for 2017 and beyond.