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GAN trading ahead of expectations after US expansions
5th Nov 2019 15:42
(Sharecast News) - Internet gambing software developer and supplier GAN updated the market on its trading for the four months ended 31 October on Tuesday, and updated its outlook for the full year ending 31 December.
The AIM-traded firm said trading was ahead of expectations, as a result of a number of factors, with gross operator revenue in the four-month period rising 222% year-on-year to $121.5m.
It said gross operator revenue of $40.6m was delivered to clients in the month of October, which was up 269% from $11.0m in October last year.
GAN said it saw higher-than-expected demand for internet gambling in both New Jersey and Pennsylvania, following the start of the National Football League (NFL) season on 5 September, and added that it saw higher-than-expected cross-selling of internet sports bettors to casino gaming in both of those US states.
Performance-related payments were received during the period, relating to the launch of Pennsylvanian internet sports betting for certain clients, with the company also describing a "faster-than-expected" ramp in Pennsylvanian sports bettors, relative to the prior-year launch of internet sports betting in New Jersey.
GAN noted that it launched internet sports betting in the state of Indiana in October, and said certain revenue derived from the overseas internet casino was delivered by GAN to the Chickasaw Nation of Oklahoma in selected European markets.
Looking ahead, GAN said the outlook for 2019 continued to remain "highly positive" for the company, adding that it now expected to see year-on-year revenue growth of more than 100% for the full financial year, up from £10.6m a year earlier.
"We are pleased that the ramp-up in real money internet gambling is accelerating ahead of our budgeted expectations in Pennsylvania and New Jersey, particularly since the start of the American football season in early September," said chief executive officer Dermot Smurfit.
"Our clients are among the leading operators of US internet gambling, leveraging GAN's proven technology Platform optimized in New Jersey over several years to convert our clients' marketing dollars into more first time online gamblers."
Smurfit said its clients' competitors remained "locked" in the "multi-year optimisation journey" that he said had already been completed by GAN, granting its clients a "significant and sustainable" competitive advantage.
"Given the rapid increase in the total addressable market for US internet gambling operators and their infrastructure providers such as GAN, we expect to see continued and rapid growth."
As at 1400 GMT, shares in GAN were up 10.43% at 127p.
The AIM-traded firm said trading was ahead of expectations, as a result of a number of factors, with gross operator revenue in the four-month period rising 222% year-on-year to $121.5m.
It said gross operator revenue of $40.6m was delivered to clients in the month of October, which was up 269% from $11.0m in October last year.
GAN said it saw higher-than-expected demand for internet gambling in both New Jersey and Pennsylvania, following the start of the National Football League (NFL) season on 5 September, and added that it saw higher-than-expected cross-selling of internet sports bettors to casino gaming in both of those US states.
Performance-related payments were received during the period, relating to the launch of Pennsylvanian internet sports betting for certain clients, with the company also describing a "faster-than-expected" ramp in Pennsylvanian sports bettors, relative to the prior-year launch of internet sports betting in New Jersey.
GAN noted that it launched internet sports betting in the state of Indiana in October, and said certain revenue derived from the overseas internet casino was delivered by GAN to the Chickasaw Nation of Oklahoma in selected European markets.
Looking ahead, GAN said the outlook for 2019 continued to remain "highly positive" for the company, adding that it now expected to see year-on-year revenue growth of more than 100% for the full financial year, up from £10.6m a year earlier.
"We are pleased that the ramp-up in real money internet gambling is accelerating ahead of our budgeted expectations in Pennsylvania and New Jersey, particularly since the start of the American football season in early September," said chief executive officer Dermot Smurfit.
"Our clients are among the leading operators of US internet gambling, leveraging GAN's proven technology Platform optimized in New Jersey over several years to convert our clients' marketing dollars into more first time online gamblers."
Smurfit said its clients' competitors remained "locked" in the "multi-year optimisation journey" that he said had already been completed by GAN, granting its clients a "significant and sustainable" competitive advantage.
"Given the rapid increase in the total addressable market for US internet gambling operators and their infrastructure providers such as GAN, we expect to see continued and rapid growth."
As at 1400 GMT, shares in GAN were up 10.43% at 127p.