Strong performances in Latin America and Europe, as well as Coolbet, GAN Limited’s new B2C sector, enhanced the company’s Q2 financials.
The company updated investors on strong preliminary results, predicting revenue of $34 million to $35 million in the second quarter, with adjusted EBITDA of $3 million to $7 million.
The higher-than-expected income will more than compensate for strategic investments in talent and technology, according to GAN. The company is also raising its full-year revenue forecast to a range of $125 million to $135 million.
Better than expected performance
In its update, the company stated that its B2C offering in Latin America and Northern Europe performed better than expected, with sports results benefiting from a higher-than-expected sports betting margin of 9.7 percent in Q2 versus 6.8 percent in the first quarter, while also maintaining marketing spend efficiency.
Due to two significant international sporting events, GAN’s revenue growth surged in the second half of the quarter.
CEO Dermot Smurfit had this to say: “Momentum has carried through the second quarter and driven continued sequential top-line growth for the business. The B2B business is performing in-line with our expectations and continuing to win new clients here in the US while the B2C business is capitalizing on the Latin American market opportunity, equipped with a highly social sports offering delivering viral customer acquisition.
“Looking back, we identified and acquired a business at the outset of this year that is now performing significantly ahead of plan. We are very pleased with where we stand halfway through the year on both our segments and look forward to providing more detail next month.”