GAN Reports Second Quarter 2024 Financial Results

Business Wire
12 min read

Growth in B2B revenues coupled with continued cost rationalization leads to improved results

Expected timeline for completion of merger with SEGASAMMY remains on track for late 2024 or early 2025

IRVINE, Calif., August 09, 2024--(BUSINESS WIRE)--GAN Limited (NASDAQ: GAN) (the "Company" or "GAN"), a leading North American B2B technology provider of real money internet gaming solutions and a leading International B2C operator of Internet sports betting, today reported its unaudited financial results for the second quarter ended June 30, 2024.

Seamus McGill, GAN’s Chief Executive Officer, said, "I’m very pleased with the continued operational progress the team is delivering. We achieved top-line revenue growth in the second quarter while reducing our operating expenses. We continue to operate the business more efficiently with a focus on improved profitability.

Mr. McGill added, "Looking ahead, our focus remains unchanged. We will continue to optimize our overall cost structure and roll-out product enhancements. We continue to work through the gaming regulatory requirements for our planned merger with SEGASAMMY and anticipate a successful closing in late 2024 or early 2025."

Second Quarter 2024 Compared to Second Quarter 2023

  • Total revenue of $35.6 million increased 5% driven by an increase in the B2B segment.

  • B2B segment revenue was $13.0 million versus $9.9 million. The increase was primarily due to an expansion of our B2B offerings in the state of Nevada and the recognition of revenue related to the exit of a B2B partner in Michigan.

  • B2C segment revenue was $22.6 million versus $23.9 million. Growth in European markets driven by increased player activity was offset by reduced player activity in Latin America and lower margins resulting from unfavorable event outcomes.

  • Operating expenses were $25.1 million versus $32.8 million. The decrease was primarily attributable to the Company's overall reduction of compensation costs and reduced headcount realized as part of ongoing cost saving initiatives, as well as lower depreciation and amortization expenses as a result of intangible assets fully amortizing in the prior year.

  • Net loss of $1.7 million versus $18.4 million, which was primarily due to increased revenues and decreased operating expenses. Additionally, the prior period included a loss on debt extinguishment of $8.8 million.

  • Total segment contribution was $25.3 million versus $24.3 million, which was driven by increased revenue in the B2B segment.

  • Adjusted EBITDA was $3.7 million versus $(2.0) million. The increase was driven by increased revenues and lower operating expenses resulting from the aforementioned factors.

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