Tuesday 20 February 2018

Revenues rise but losses at Smurfit Jr’s iGaming company top €2m

GAN chief Dermot Smurfit Jr Picture: Richard Eaton
GAN chief Dermot Smurfit Jr Picture: Richard Eaton
Ellie Donnelly

Ellie Donnelly

GAN, the gaming software company headed up by Dermot Smurfit Jr, has posted a loss after tax of £2m (€2.28m) for the six months to 30 June.

This is down marginally on the £2.3m loss it recorded for the same period last year.

The company, which provides gaming technology to casinos and online operators, saw its gross income increase 17pc to £18.6m.

Net revenue at the group also increased, up 6pc to £4.1m, according to the company’s half year report.

The growth was driven by recurring revenues driven by the launch of five new clients of simulated gaming and strong growth in real money regulated gaming markets in the US and Europe in the first half of 2017, a statement from the company said.

Earnings before interest, taxation, depreciation, and amortisation (EBITDA) at the company were £24,000, up from a loss of £0.5m in the same period last year.

Mr Smurfit said that the company anticipates this favourable EBITDA trend to continue throughout the second half of 2017.

The US and Italy accounted for 63pc and 31pc of net revenue respectively.

As at 30 June the company held cash and cash equivalents of £3.3m.

GAN products include both real money gambling and "simulated gaming", where players buy virtual currency to gamble for entertainment and not profit.

Earlier this year the company completed its first debt issuance, raising gross proceeds of £2m which will position the group for further growth.

"GAN's overseas internet casino for one of the largest casino operating groups in the US represents the culmination of GAN's long-term mission to move land-based US casinos online in domestic US intra-State markets or selected international regulated markets.

This represents an exciting new B2B business for GAN, which will benefit greatly from the client's material marketing investment," Mr Smurfit said.

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