The provider has seen its total revenue decrease from the second quarter’s $34.6m figure, which it attributes to sports seasonality and lower sports betting margins, despite an increase in active customers. This decline was partially offset by organic growth in casino and poker revenues, but these were not enough to mitigate an overall slide in B2C revenue.
Bringing in $21.1m, this segment experienced a $2.9m decrease from the $24m reported for Q2. However, GAN’s revenue from its B2B segment rose on the back of a bump in hardware sales, climbing by 5% from $10.6m to $11.2m.
“Our third quarter financial results were in line with our expectations as our B2B segment revenues rose 5% compared to the prior quarter, while our B2C revenues experienced seasonality following a record second quarter,” remarked Dermot Smurfit, GAN’s CEO.
Lower sports betting margins also drove an increase in net loss, which went from $2.7m in Q2 to $7.9m in the third quarter. Also affecting this rise was a total of $1.5m in adverse impact due to an additional tax provision expense, foreign currency effects and a purchase accounting adjustment related to the company’s acquisition of Coolbet.
GAN’s cash also declined by $1.8m, leaving it with $50.3m available, which was primarily caused by payments to obtain exclusive rights for online gaming content.
Despite the company’s revenue decrease in the third quarter, Smurfit remained optimistic, commenting: “We continue to make exciting progress in each of our business segments and initiatives and are well-positioned going forward.”
