GAN has reported a mixed second quarter led by 2% top-line growth.
All-in-all, the company generated $35m in revenue, a modest rise from last year’s $34.4m. This increase is largely attributable to GAN’s B2B segment, which produced $14.2m, up 36% year-on-year.
The company credited this to an increase in development services, as well as hardware sales and organic growth more broadly in US real-money iGaming.
However, the performance of GAN’s B2B segment was offset by a B2C decline. This latter area generated $20.8m in second quarter revenue, down from $24m.
Behind this slump was a decrease in the sports margin to 7.1%, alongside a $2.4m hit from the “unfavourable impact of foreign currency fluctuation.”
Nevertheless, GAN’s gross profit rose on a year-over-year basis, climbing from $24m to $24.5m, but despite this slight increase, the company’s net loss widened.
When compared to Q2 of last year, GAN’s net loss went from $3.8m to $38.3m. Karen Flores, the company’s CFO, said in GAN’s Q2 earnings call that this included a $28.9m non-cash impairment charge related to the acquisition of Coolbet.
Moreover, the company’s adjusted EBITDA shrank year-on-year, falling from $3.5m to $1.3m. Flores commented: “Our deliberate, focused efforts to improve our profitability are bearing results in the midst of the difficult macroeconomic and inflationary environment, as seen through our adjusted EBITDA in the quarter.
“All of our cost savings actions have been executed without hindering our longer-term strategy or ability to accelerate future growth.”
On a half-year basis, the company’s revenue is up year-on-year, going from $62.2m to $72.5m.
However, GAN now expects to generate between $142.5m and $152.5m for 2022 as a whole, a decrease when compared to previous full year guidance.