Positive earnings recorded at Smurfit Jr’s firm as income increases by 30pc
GAN, the gaming software company headed up by Dermot Smurfit Jr, has posted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of £0.5m (€0.57m) for 2017, a turnaround on the £0.9m loss recorded in 2016.
Gross income for 2017 was £41.1m, a 30pc increase on the previous year, according to the company’s annual results released today.
The performance was driven by the launch of five new clients of Simulated Gaming in the US, together with a number of significant commercial and strategic developments, according to Mr Smurfit Jr, CEO of the company.
Mr Smurfit went on to say that one of the most significant developments was the passage of legislation permitting almost 13 million Pennsylvanian residents to play real money Internet casino games starting in second half of 2018.
- Read more: GAN reports strong growth in US market
GAN's client of Simulated Gaming in Pennsylvania, Parx Casino, is the largest single casino property by market share in Pennsylvania.
Overall the company reported a loss after tax of £3.5m, down marginally on the £3.8m loss recorded in 2016. Meanwhile cash and cash equivalents at the end of the year were £2.7m, down on the £3.2m held in 2016.
"2017 saw GAN deliver its first full year of positive EBITDA since 2013 following a lengthy investment cycle to position GAN as a market leader in the US casino industry delivering internet gaming solutions for real money Regulated Gaming and Simulated Gaming which is deployed in advance of regulation," Mr Smurfit said.
During the year the company, which signed two US casino clients for real money regulated gaming in New Jersey and European markets, raised £2m through an unsecured 9pc convertible loan note.
In addition, the company’s internet gaming platform, content and supporting services continued to support Betfair's fast-growing New Jersey internet casino business.
Looking forwards, Mr Smurfit said that the company’s performance to date in 2018 is “in line with our expectations.”