Gaming software provider GAN recorded revenue figures of $27.8m (£19.6m/€22.8m) for the first quarter of 2021, marking a significant 263.0% increase on the same period last year, thanks to B2C growth after acquiring operator Coolbet.
$13.5m of the total revenue came from B2B operations (up 76.0% from 2020). Of this total, the $9.2m generated from platform and content fees was a 55.9% improvement on last year, and development services brought in $4.3m – up from $1.7m in 2020.
The acquisition of sports betting operator Coolbet in January proved to be a lucrative investment, helping GAN make $14.3m from B2C.
The United States and Europe were the two most successful regions in terms of revenue, bringing in $11.4m and $11.1m respectively. Latin America brought in $3.6m, whilst the rest of the world generated $1.7m.
As with revenue, operating costs and expenses also saw a large increase in the first quarter – up 364.7% to $31.6m.
Cost of revenue was $8.7m, while general and administrative costs reached $10.0m. Sales and marketing amounted to $4.1m, product and technology costs were $4.9m, and depreciation and amortization totaled $4.0m.
Operating losses amounted to $3.8m, down 548.6% from the $839,000 operating profit generated last year. After $661,000 income tax, the net loss for the business was $4.5m.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was also down 32% to $1.7m.
GAN CEO Dermot Smurfit said: “We started the new year on a strong note with 263% top-line growth year-over-year, fueled by both organic growth as well as the Coolbet acquisition. We are thrilled with Coolbet’s strong contribution this quarter and how seamlessly we’ve been able to integrate the team.
“We completed a record five RMiG partner launches during the first quarter, highlighted by our groundbreaking launch and strong results in Michigan, plus our exciting new partnerships with Wynn and Churchill Downs.
“We carried that momentum into the second quarter, with now 10 launches year-to-date, exceeding all of 2020. Looking ahead, our pipeline continues to expand with new opportunities for our industry-leading B2B offering here in the U.S.”
GAN also announced that it has reached an agreement with Ainsworth Game Technology to obtain the exclusive online rights to all current and future Ainsworth online games.