Game Account Network celebrated organisational flexibility in the face of COVID mandated casino closures, as the organization announced strong growth in the second quarter of the year.
The solid result caps a good week for the company after a series of announcements made alongside Cordish Gaming Group, Route 66 Casino and Penn National Gaming, reiterating full-year 2020 revenue guidance of between $37 m and $39 m;
Revenue in Q2 rose 99 percent to $8.32 m (2019: $4.17 m), powered largely by market launches including real money online gaming in Pennsylvania and New Jersey at Parx Casino and FanDuel.
At $7.04 m, the US accounted for 85% of sales, at Italy contributing $1.23 m (2019: $1.03 m) and the UK contributing $33 m from WinStar Casino, which withdrew from the partnership as of December 31 , 2019. The category ‘Rest of the World’ dropped from $16 m to $11 m.
Gross profit improved dramatically to end the quarter at $5.45 million (2019: $976 million), net loss grew from $1.78 million to $8.61 million and adjusted EBITDA improved to $1.9 million compared to a loss of $200,000 in the period previous to the year.
Active player days and average sales per daily active user grew 18 percent and 100 percent , respectively, largely due to the continued growth of existing US users and companies, as well as the result of the passage of new laws by new states.
In the first half of the year, sales increased by 16.1 percent to $15.9 million (2019: $13.7 million), gross income increased by 57.7 percent to $10.5 million (2019: $6.68 million), and net loss swung to $7.99 million from an income of $619 million.
Dermot Smurfit, GAN executive director, explained: “We were pleased to achieve revenues of $8.3m during the second quarter of 2020, a period during which nearly all of our land-based casino customers were forced to close their physical operations and when most major sporting events were cancelled as a result of the global pandemic.
“Our business has proven resilient to these outside forces in recent weeks, and we believe GAN can greatly contribute to both our customers’ success and the accelerated secular shift to igaming as casino operators continue to be impacted by the pandemic.
“The substantial growth in our business is a result of our ability to deliver results for clients, such as Parx Casino, whose Pennsylvania online casino gross gaming revenues reached $19.3m in Q2 including an all-time monthly high of $7.6m from their online casino for the month of May, according to regulatory reports and Eilers & Krejcik.
“We achieved record KPIs during the second quarter of 2020, and our operational model continues to demonstrate strength, particularly in the current market environment.”
GAN claims to have won substantial new customers who will join Michigan on the firm’s platform in Q4, expecting a consistently good online casino showing for the rest of the year.
The company also says it continues to be the exclusive online gaming provider of FanDuel’s online casino operations across the US, and anticipates immediate launch in both West Virginia and Michigan.
Nevertheless, GAN also admitted a substantial loss with the company saying it “does not anticipate sports gaming revenues from FanDuel after August 31, 2020”. That’s because FanDuel is deploying its patented digital wallet for its sports gaming business, it’s said.
“Last week we launched Cordish Gaming Group’s new ‘PlayLive!’ branded Internet gambling business in the Commonwealth of Pennsylvania, a particularly notable achievement as we launched just 72 days after contract signing,” Smurfit continued.
“Additionally, yesterday we activated simulated gaming for Penn National Gaming, one of the largest casino operators in the United States. We are anticipating activation of the Michigan market early in the fourth quarter, and are currently preparing to launch three operator clients, which we believe will drive significant market share.”
