Delivering a trading update on its full-year 2018 results, GAN, which supplies online gaming services to the land-based gambling sector in the US, said revenue will be “ahead of market expectations” at £10.5m to £11.3m.
The increase, against £9.3m in 2017, was primarily driven by its real-money internet gambling which increased H2 2018 revenue by more than 40 per cent compared with H1.
GAN said it ended the period, to December 31, 2018, with a strong debt-free balance sheet, while EBITDA losses for the year are expected to be between £1m and £15m. The company said these losses are due to costs associated with the launch of the new igaming services for clients in West Virginia, Pennsylvania and New Jersey in H1 2019.
The outlook remains highly positive due to continued and rapid growth in real-money internet gambling delivered for clients in both the US and European markets, GAN said in the update.
With momentum carrying into 2019, the company said it expects “mid-to-high double-digit percentage year-on-year revenue growth” in FY 2019 and full-year positive EBITDA, based on the current fixed cost base.
Dermot Smurfit, CEO of GAN, added: “Our recent contract announcements and expectation for further legislation to pass in new states in the US means that 2019 is set to be a very exciting year.
“We exceeded market expectations for revenue growth in 2018, having successfully launched internet sports-betting in New Jersey. Our successful £7.5m fundraising has enabled us to rapidly deliver for our clients and repay £2m in short term debt.
“Going into 2019, we are strategically well placed to deliver profitable growth.”
