GAN has praised its continued momentum in guiding the company to a successful start to the year, as the supplier has also acquired the exclusive online rights to all existing and potential Ainsworth Game Technology online titles for an undisclosed amount.
Total revenue for the first quarter ended March 31, 2021 increased 263 percent to $27.8 million (2020: $7.7 million), with B2B revenue up 76 percent to $13.5 million (2020: $7.6 million), and B2C revenue of $14.3 million, derived from its Coolbet acquisition that closed in January 2021.
Owing to increased amortisation related to acquired intangibles from the Coolbet transaction ($2.9m), increased share-based compensation ($1.2m), and operational expenses related to promotion, organisational growth to meet industry and consumer demand, and costs related to regulatory requirements, the net loss for the period was $4.5 million, compared to $700,000 a year ago.
Increased operating costs in the current year due to regulatory requirements, as well as organisational growth to meet business and consumer demand, drove a decline in adjusted EBITDA to $1.7 million from $2.5 million in 2020.
Karen Flores, GAN’s CFO, said of the company’s revised forecast for the year: “Our first quarter financial results exceeded our expectations, and the outlook remains positive for the balance of 2021. We are increasing our full year revenue guidance to a range of $103m to $108m.
“As we gain scale, become more efficient, and move through a period of significant investment for growth, we anticipate to drive improved profitability. These factors will yield better operating leverage across the business over the long-term and further bolster our strong financial position as we execute our growth strategy, support new and existing customer launches and launch the B2C sportsbook technology later this year.”
70+ active game titles
Furthermore, GAN has entered into a multi-year relationship with Ainsworth, which has resulted in the acquisition of more than 70 active gaming titles, with the portfolio expected to expand to nearly 200 in the future.
This will give the group’s platform and RGS clients access to an exclusive portfolio of online casino games, with Ainsworth distributing its igaming library exclusively via the aforementioned channels in the United States.
GAN’s CCO, Jeff Berman, explained: “Today’s announcement recognises the benefit of marrying our distribution to Ainsworth’s content and is an important step toward disrupting existing distribution channels in the US online gaming space.
“This agreement ensures that GAN possesses differentiated and exclusive access to what we believe will be an ever-growing focus on recognised retail gaming content naturally sought-after by Americans engaged in playing online casino games.
“Our goal is to continue to build a leading portfolio of US casino games to benefit our diverse clients and establish ourselves as exclusive providers of premier US content. We are excited to extend our long-standing relationship with Ainsworth, as they have built a global reputation for developing award-winning games for both the online and land-based channels.”
Online distribution across the US igaming states
Ainsworth’s general manager of online, Jason Lim, added: “Our agreement with GAN is a testament to their leading online distribution across the US igaming states as well as our industry-leading collection of slot games and emphasises the importance of exclusive gaming content in a competitive industry.
“Games such the QuickSpin brand of wheel games, Pan Chang, Lucky Break and Kanga Cash offer exciting and unique experiences for our players around the world. We are thrilled to be partnering with GAN to further solidify each of our leading positions in the industry.”