Friday 18 October 2019

Smurfit Jr’s Gan considers sale, as revenue jumps 16pc

Dermot Smurfit Jnr
Dermot Smurfit Jnr
Ellie Donnelly

Ellie Donnelly

Dermot Smurfit Jr's Gan is undertaking a review of various "strategic alternatives" open to it, in order to maximize value for shareholders.

These alternatives include the potential sale of the group, as well as the possibility of seeking an investor to acquire a non-controlling stake in the gambling software company.

In a statement Gan also said it would consider the option of seeking a listing on a US stock exchange, in addition to or in replacement of the company's existing stock market quotations.

This came as the group reported a 16pc increase in revenue to £10m (€11.6m) in the 12 months to 31 December 2018.

Income increased 20pc to £49.2m (€57m), according to annual results from the group.

However, losses after tax at the company rose to £6m (€7m) from a loss of £3.5m (€4m) in 2017.

During the year the group signed a number of new contracts, as it benefited from the relaxation of gambling laws in the United States.

Describing 2018 as a "milestone period" for the group, Dermot Smurfit, CEO of Gan, said the company is "well positioned" for the coming year.

"The repeal of a 25 year-old Federal ban on sports betting in America in May 2018 cleared the path for Gan to launch internet sports betting just four months later following a complex re-allocation of our internal engineering resources in order to integrate the first sports betting application into our enterprise software platform," Mr Smurfit said.

"Additional engineering resources were acquired principally in the second half of 2018 in order to deliver a complete internet gambling solution to the market which reinforced Gan's position as a market leader."

However he added that this investment has resulted in Gan's performance so far in 2019 "exceeding expectations."

Gan’s partners and customers include Paddy Power Betfair, Parx Casino, and Choctaw Mississippi.

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