GAN turns in positive EBITDA thanks to record Q1 revenues

1st May 2019 08:32

(Sharecast News) - Gambling software firm GAN reported record revenues and a return to positive EBITDA in the first quarter of its trading year, driven by higher -than-expected sports betting growth in New Jersey and some strong cross-selling.GAN generated record revenues of £4.6m during the three months ended March 31, up 122% year-over-year, and approximately £200,000 ahead of expectations.On the earnings side of things, GAN generated a positive EBITDA of £600,000, returning the AIM-listed outfit to the green following a strategic investment cycle aimed at expanding its engineering resources.GAN was debt-free at the end of April and held £8.6m in cash and equivalents.Looking forward, GAN told investors its outlook for 2019 continued to remain "highly positive" as it continues to witness rapid growth in real money gaming in the US markets as well abroad.Elsewhere, GAN said growth in regulated sports betting markets was still higher than expected, something it believes will lead it to a record year.Chief executive Dermot Smurfit said: "We are very pleased with our performance through the first three months of 2019 with a record top-line figure and return to a positive EBITDA. We knew that the initiatives set in place throughout 2018 positioned the company for a strong first quarter and fiscal year 2019."We remain focused on landing new clients, and expanding upon existing contracts with clients, in addition to preparing ourselves for a rapidly expanding market due to an acceleration in sports betting-led online gambling regulation in the United States."As of 0830 BST, GAN shares were up 1.69% at 60p.