GAN gallops ahead in strong first-half update

Shares in gambling software provider GAN (LON:GAN) surged 21.38% to 88p (as of 14:05 BST) after it posted a 145% increase in net revenues for the six months ended 30th June. The company also moved into a pre-tax profit, as opposed to the loss for the same period of last year.

CEO Desmond Smurfitt commented: “The first half of 2019 saw rapid growth in revenues driven by real money Internet gambling in the U.S. and the accelerating adoption of Internet sports betting by numerous states. We were pleased to deliver real money Internet gambling across four websites (and counterpart mobile apps), to end users in two U.S. States operated by three clients reliant on our technology Platform for powering their Internet gambling business activities.

“We have also substantially improved GAN’s balance sheet as the Group transitioned to positive cashflow from ordinary activities with GBP 9.1M cash as on June 30 2019 and zero debt. The capital available on the balance sheet will be used to selectively grow development resources in Sofia, Bulgaria and Las Vegas, NV to capture substantial incremental revenue opportunities available from Internet gaming and sports betting in other U.S. States expected to regulate internet gambling in the near future.

“We have an incredibly positive outlook for the remainder of 2019, as the recent launch of Internet sports betting and casino gaming in Pennsylvania, the Company’s current sales pipeline and existing contracted clients are projected to significantly enhance GAN’s revenue and EBITDA prospects“.