GAN Expected to Post 2019 Year-End Financial Results Ahead of Expectations, Company to File Registration Statement on Form F-1 as Part of U.S. Listing Process
LONDON--(BUSINESS WIRE)--GAN plc (“GAN” or the “Company”), an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today provided a trading update ahead of its preliminary results for the year ended December 31, 2019 (FY 2019).
2019 Financial Highlights
Trading for FY 2019 is expected to be ahead of market expectations with year-over-year revenue growth in the range of between 115% and 120% and year-over-year EBITDA1 margin in the range of between 30% and 35%, which compares to prior-year EBITDA1 margin of -14%. GAN ended FY 2019 with a strong, debt-free balance sheet and positive cash flow for the year.
Trading was ahead of expectations as a result of the following factors:
- Higher-than-expected demand for Internet gambling in both New Jersey and Pennsylvania following commencement of the National Football League (“NFL”) season on September 5, 2019;
- Higher-than-expected cross-selling of Internet sports bettors to Internet casino gaming in both New Jersey and Pennsylvania;
- Performance-related payments received relating to the launch of Pennsylvanian Internet sports betting for certain clients;
- Faster-than-expected ramp in Pennsylvanian sports bettors, relative to the prior-year launch of Internet sports betting in New Jersey;
- Launch of Internet sports betting in the State of Indiana in October 2019; and
- Certain revenue derived from the Overseas Internet Casino delivered by GAN to the Chickasaw Nation of Oklahoma in selected European markets.
Later today, being January 31, 2020, GAN plc expects to file the required F-1 filing to the U.S. Securities Exchange Commission (“SEC”), formally initiating the U.S. listing process and ultimately seeking admission to trading on NASDAQ as a Foreign Private Issuer as soon as reasonably practical. As a result of this U.S. listing process, and associated SEC compliance obligations relating to forward-looking statements, no outlook can be provided at this time.
Dermot Smurfit, CEO of GAN commented:
"We are delighted with our full year performance in 2019, which proved the long-theorized margin opportunity available to GAN as a specialized enterprise software provider and provides a solid foundation for 2020 and beyond. Our intellectual property and technical expertise put us at the forefront of the Internet sports betting and casino gaming market as demonstrated by our diverse and expanding client base. Our recent new client announcements, continued focus on acquiring additional new clients and expectations for further real money Internet gambling legislation to pass in new States in the U.S. set the stage for 2020 to be yet another very exciting year.”
1 Clean EBITDA is a non-GAAP Company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expenses and other items which the directors consider to be non-recurring and one time in nature.
GAN is a leading business-to-business (“B2B”) supplier of internet gambling software-as-a-service solutions (“SaaS”) to the US land-based casino industry. The Company has developed a proprietary internet gambling enterprise software system, GameSTACK™, which it licenses principally to land-based US casino operators as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming and virtual Simulated Gaming.
GAN is listed on the London Stock Exchange (LSE: GAN).
This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.
For more information please visit www.GAN.com.
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