Game Account eyes US growth for 2015
Published 17/04/2015 | 02:30
Game Account Network (GAN), the online gambling software firm headed by Dermot Smurfit Jnr, has posted a £2.6m (€3.6m) pre-tax loss for 2014.
But underlying net revenue at the company, which develops and supplies gaming software and content, rose 20pc to £6.5m (€9m).
The loss reported by the company was lower than was expected by analysts.
GAN has focused much of its expansion on securing a foothold in the United States as it gears up for the legalisation of online gambling in the country.
It has partnered with a number of casinos in states such as Connecticut and New York to provide simulated gaming systems to allow customers to experience the products without being able to wager real money bets using them.
New Jersey has already legalised online gambling, with other states expected to eventually follow suit. A GAN system is used by UK betting group Betfair in New Jersey.
The company also signed a deal in Australia.
Mr Smurfit said that GAN has continued to position its business to capture growth in online gambling markets.
"Real-money internet gaming in New Jersey and the pace of regulation in the US market has been slower than expected but we are confident in the long-term prospects for real-money gaming in the years ahead," he said.
He added that the opportunities to deploy simulated gaming systems in the US this year will compensate for the slower than expected pace of the development of real money internet gaming.
GAN is backed by investors including Mr Smurfit's father, Dermot, as well as Michael Smurfit and financier Dermot Desmond.
David Jennings of Davy Stockbrokers said that the key goal for GAN remains building volume.
Davy expects GAN to generate earnings before interest, tax, depreciation and amortisation of £5.7m this year. £5m of that relates to a system sale.