Online gaming platform GAN has reported revenue of $34.6m (£25.0m/€29.3m) in its Q2 results ended 30 June, a rise of 316.0% year-on-year.
The increase came after the Q2 2020 period was affected by the novel coronavirus (Covid-19) pandemic.
Most of this revenue – $14.1m – was generated in Europe, a rise of $12.9m compared to Q2 2020. A total of $10.2m came from Latin America operations, which did not have comparative figures available for Q2 2020. The United States accumulated $8.6m, up 22.2%. The rest of the world made up $1.5m.
A total of $10.4m of the revenue was accumulated from its B2B operations, a rise of 27.9% year-on-year. This increase may be partly due to GAN’s B2B tribal and commercial operator launches, which took place in Pennsylvania, Colorado, Indiana, West Virginia, Arizona and New York.
There were no yearly comparison figures available for B2C, which generated $23.9m of the revenue. This revenue came from operator Coolbet, which GAN acquired in January.
However, operating costs exceeded revenue. General and administrative expenses were the largest cost, at $12.3m. The cost generated by revenue totaled at $10.3m, while sales and marketing expenses amounted to $5.4m. The remaining expenses were made up by product and technology and depreciation and amortization costs.
In total, the operating costs came to $35.3m, an increase of 108.5% compared to Q2 2020. This left operating profit at a loss of $1.7m, down by $7.3m from a $5.6m profit the year before.
Following income tax of $992,000, the total net loss for the quarter came to $2.7m.
“We continue to emphasize the importance of possessing exclusive content and an industry-leading library of the most recognizable and popular retail games,” said Dermot Smurfit, CEO of GAN.
“Our business momentum accelerated through the first half of 2021, as we continue to scale the business and build significant brand awareness across our key business-to-business (B2B) and consumer facing (B2C) end-markets.”
On GAN’s earnings call, Smurfit also spoke about the challenges of vertical integration, arguing that it would prove difficult for many businesses, meaning GAN would still have a place as a dedicated supplier.
“Some who tried will ultimately fail, as they have again and again throughout Europe, which must serve as a cautionary tale for all who underestimate the challenges here in the U.S, which remain(s) the high watermark of online regulatory technical complexity anywhere in the world,” he said.
Following these Q2 results, Karen Flores, CFO of GAN, announced the company’s intention to raise its full-year projections.
“Our strong second quarter financial results were in-line with our preannounced expectations in early July and support our confidence behind the decision to raise our full-year revenue outlook to between $125 million and $135 million,” said Flores.
“We remain in a strong financial position as we support new and existing customer launches, pursue our content acquisition strategy, grow our team and evaluate new geographies.”
Last month, Treasure Island Hotel and Casino in Las Vegas entered into a partnership with GAN to launch an online gaming platform for patrons.