Online gambling software provider and Coolbet owner, GAN Limited, has announced its unaudited financial results for Q2 2022 revealing a revenue increase of 2% from $34.4 million (€33.9 million) in Q1 to $35 million (€34.5 million) in Q2.
According to the press release announcing the results, the increase in revenue was primarily driven by the company’s growth in the B2B segment. B2B revenues for the period totaled $14.2 million (€14 million), an increase of 36% on the $10.4 million (€10.2 million) reported in the previous quarter.
However, the increase in B2B revenues was partially offset by a decrease in B2C revenues as a result of lower sports margins and foreign currency fluctuation. B2C revenues for Q2 from the company’s Coolbet product totaled $20.8 million (€20.5 million) a drop of 13.3% on the $24 million (€23.6 million) reported in the previous quarter. This was despite an increase of 8% in wagering through Coolbet as the sports margin dropped to 7.1%. Meanwhile, the company also reported a $2.4 million (€2.3 million) impact as a direct result of the unfavorable impact of foreign currency fluctuation.
Gross profits for the period came to $24.5 million (€24.1 million), a 2% increase on the $24 million (€23.6 million) reported in Q1.
Dermot Smurfit, CEO of GAN stated:
“We continue to make strong progress toward the launch of GAMESTACK 2.0 and GAN Sports in U.S. markets as we position GAN for improved performance in the face of a difficult macroeconomic environment. Our cost saving initiatives and other productivity measures are working and will enhance our long-term profitability profile. Both our B2B and B2C segments continue to demonstrate unique technology and capabilities, as customer adoption and new launches remain on a positive trend. GAN is now licensed in 16 U.S. states, Canada, and has begun the initial stages of entering the Mexican market.”
“We are excited about the momentum behind our key initiatives, such as Super RGS, and the customer feedback surrounding the uniqueness and value of our exclusive gaming content has been highly encouraging and validating. We expect a robust launch schedule for GAN Sports throughout the U.S. in 2023, which will further our position as a leading provider of a true omnichannel gaming experience. We are excited about the prospect of a stronger second half of the year, supported by the FIFA World Cup.”
Karen Flores, CFO of GAN added:
“Our deliberate, focused efforts to improve our profitability are bearing results in the midst of the difficult macroeconomic and inflationary environment, as seen through our Adjusted EBITDA in the quarter. All of our cost savings actions have been executed without hindering our longer-term strategy or ability to accelerate future growth. During the quarter, we were also able to repurchase roughly $1 million (€0.98 million) of our stock in the open market and completed a $30 million (€29.6 million) term loan to facilitate our investment in our strategic initiatives.
Our balance sheet and financial profile remain strong, and will be supported by a much improved path toward increased profitability and scale. However, it has become clear that a difficult foreign exchange environment and European headwinds will temporarily impact our results in the second half of the year. As a result, we are lowering our full year revenue expectation to $142.5 million (€140.6 million) to $152.5 million (€150.4 million), and Adjusted EBITDA expectations to be in the range of $10 million (€9.8 million) to $15 million (€14.8 million) for the full year.”
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.