GAN reports 5% revenue decrease for Q4 driven by low sports hold

GAN Limited has reported $30.5m in revenue for Q4 2021, down from $32.3m for the third quarter, a decrease driven by “abnormally low sports hold.”

GAN finance reports q4 2021 gi web image

While handle was up 12% on healthy organic demand for GAN’s Coolbet product offering, Q4 saw its overall B2C revenue decline based on a meagre 4.6% hold.  

All-in-all, the company’s B2C revenue amounted to $19.2m, down from Q3’s $21.3m. This slump also saw GAN’s adjusted EBITDA loss broaden on a quarter-over-quarter basis. For Q3, the company posted an adjusted EBITDA loss of $800,000, but for Q4, its loss had risen to $5m.

However, while Q4’s low sports hold hit GAN’s bottom line, the company’s quarterly performance wasn’t all bad. Handle amounted to $633m, while active customers and deposits all continued to grow.

GAN’s B2B segment also had a better Q4. Revenue for this area amounted to $11.3m, a modest increase from Q3’s $11.2m.

On a whole year basis, the company’s performance was also much more impressive. Driven by the acquisition of Coolbet, overall revenue was up 257%, going from $35.2m for 2020 to $125.4m for 2021.

However, GAN’s full-year net loss widened to nearly $25m, in large part prompted by higher operating costs resulting from the company’s acquisition of Coolbet.

“Our fourth quarter financial results were adversely affected by the volatile sports margin in our B2C segment consistent with other international operators, which was partially offset by continued strong new customer growth,” remarked GAN’s CEO Dermot Smurfit.

He added: “We have not lost sight of the fact that we delivered incredibly strong revenue growth in 2021, made numerous strategic steps toward solidifying our future and are projecting another year of very strong revenue growth as well as much improved profitability as we achieve better scale.”


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