GAN hails NJ sports betting impact as client revenue grows
GAN saw its share price climb more than 5% on Tuesday morning after the company announced strong growth in client revenue in the second and third quarters of its 2018 financial year.
While the supplier has not provided in-depth figures on its performance since releasing its half-year report for the six months ended June 30th, it has released a number of key performance indicators to update the market on its performance in the second and third quarter.
This includes gross operator revenue, which the supplier says reflects the strength of its clients' performance. For Q2, gross operator revenue climbed 32% year-on-year to $24m, then jumped 40% to $26.7m in Q3. The third quarter results were boosted by the launch of its sports betting partner FanDuel in the New Jersey market, as well as the roll-out of online and simulated gaming for Atlantic City's newly-opened Ocean Resort Casino.
Reflecting on the results, CEO Dermot Smurfit (pictured) said: "GAN traded at record levels during these past two quarters with significant growth in Q3 driven by the launch of our second New Jersey client of regulated gaming accelerated by the first month of US internet sports betting in September.”
The company’s strong momentum was further demonstrated by 8.6% quarter-on-quarter growth in active player days in Q3, to more than 3.4 million, while average revenue per daily active user grew 2.5% sequentially to $7.85 for the same period.
GAN did not release revenue or earnings figures for the two quarters. In its H1 figures, published in September, GAN reported an 11% increase in revenue, though also posted a post-tax loss of £2.9m for the six month period.
At the time, Smurfit said the company’s potential for growth was dependent on regulatory progress in the US, adding “we will continue to invest in resources to prepare for 2019 and beyond.”
GAN now has 14 casino operators as clients of simulated gaming coast-to-coast across the US and internationally. It has two real money clients in New Jersey and 10 in Europe.
In July, GAN announced its partnership with Parx Casino, Pennsylvania’s biggest casino venue, had been expanded to launch real-money gaming alongside its simulated gaming product, once the market opens. GAN said that plans to launch iGaming in the state are progressing, but noted that it expects to launch during the first half of 2019.