Key points:
- Full-year 2024 revenue increased 4% year-on-year to $135m, with B2B revenue up 17% and B2C revenue down 2%
- Operating expenses fell 19% to $98.2m, contributing to a net loss reduction of 77% from $34.4m in 2023 to $8m in 2024
- GAN expects to finalise its merger with Sega Sammy in Q2 2025, pending regulatory approvals
GAN has announced its financial results for Q4 and full-year 2024, reporting continued revenue growth and improved profitability amid ongoing cost-cutting measures.
For the full year, total revenue increased by 4% year-on-year to $135m, primarily driven by a 17% increase in B2B revenue, which reached $50.7m. This growth was attributed to expanded offerings in Nevada and revenue recognition from a partner exit in Michigan.
The B2C segment, however, saw a 2% decline, with revenue falling to $84.3m in 2024. While player activity in Europe increased, it was offset by a drop in Latin American player activity and unfavourable exchange rate fluctuations.
Operating expenses were reduced by 19% to $98.2m in 2024. The reduction was primarily driven by a 23% decrease in compensation costs and lower depreciation expenses due to fully amortised assets. This contributed to a 77% reduction in net loss, which fell to $8m in 2024.
Adjusted EBITDA improved significantly, turning positive at $8.6m compared to a loss of $8.4m in 2023. The company’s cash balance also improved by 6%, increasing to $38.7m at the end of the year, supported by a payment received from a partner exit.
Q4 2024 sees 3% revenue growth, driven by B2C expansion
GAN reported Q4 2024 revenue of $31.7m, a 3% increase. The B2C segment grew by 20%, reaching $22.7m. Growth in European markets contributed to this increase, despite lower activity in Latin America.
Conversely, the B2B segment declined by 24%, with revenue falling to $9m in Q4 2024. This drop was attributed to the exit of a B2B partner.
B2B Gross Operator Revenue, however, saw a sharp increase of 69%, reaching $651.2m in Q4 2024. Growth in Pennsylvania, New Jersey, Ontario and Connecticut was reportedly the key driver behind this increase.
Operating expenses for Q4 declined by 21%, to $23.4m. This cost reduction helped improve net loss by 55%, reducing it to $4.2m in Q4 2024. Adjusted EBITDA also showed significant improvement, reaching breakeven compared to a $3.9m loss in the prior-year quarter.
Despite these positive trends, B2C Active Customers declined due to limited acquisition efforts in Latin America, an area the company will need to address to sustain future growth.
Comparison to Q3 2024 performance
GAN’s Q3 2024 performance showed even stronger growth, with revenue increasing by 24% to $37.1m. Net income for Q3 was $2.1m, a significant turnaround from an $8.2m net loss in Q3 2023.
The B2B segment was the key driver in Q3, with revenue increasing by 60.8% to $16.4m. The B2C segment also posted gains, rising 5.6% to $20.7m.
Operating expenses were reduced by 9% in Q3, falling by over $2.5m from the prior-year period. Adjusted EBITDA also improved, reaching $5.4m compared to a $2.5m loss in Q3 2023.
Sega Sammy merger on track for Q2 2025 completion
GAN is progressing towards completing its merger with Sega Sammy, which is expected to close in Q2 2025. The deal has already secured approvals from GAN shareholders, the Committee on Foreign Investment in the US (CFIUS) and several gaming regulators, including the Nevada Gaming Commission.
GAN CEO Seamus McGill stated: “We continue to work through the remaining regulatory requirements and expect the merger to be successfully completed in the second quarter of 2025.”
Future outlook and strategic priorities
GAN remains focused on leveraging its improved financial position to expand its B2B segment, particularly in North America. The company also aims to stabilise player activity in its B2C business by addressing customer acquisition challenges in Latin America.
With a 19% reduction in operating expenses and improved adjusted EBITDA, GAN expects further profitability improvements in 2025. However, the successful completion of its merger with Sega Sammy and its ability to sustain growth in both segments will be key determinants of its future financial trajectory.
