GameAccount Network (GAN) has recorded a loss after tax of £2.9m for the six months ended 30 June.
A trading statement released before the results claimed the company “performed in line with market expectations."
Despite the loss after tax, GAN managed to increase gross income by 28% year-on-year to £23.8m and increase its group net revenue by 11% to £4.6m, with simulated gaming, Italian markets and New Jersey performing well.
None of the increases could prevent the company’s clean EBITDA loss of £467,000 or the basic loss per share of £0.04.
However, there are plenty positives to take away from the report and early trade statement.
Cash and cash equivalents nearly doubled from £2.7m on 31 December 2017 to £5.1m on 30 June 2018.
This was thanks to GAN raising gross proceeds of £7.5m from the subscription by new investors for 15 million new shares in the capital of the company.
Net sssets at 30 June also increased from £9m in H1 2017 to £12.3m in H1 2018.
Dermot Smurfit, CEO of GAN commented: “Regulatory delays will impact US real money gaming results in H2 2018, but we will continue to invest in resources to prepare for 2019 and beyond.
“By way of outlook on 2019, the recent launch of internet sports betting, the company’s current sales pipeline and existing contracted clients are projected to significantly enhance GANs revenue and EBITDA prospects.”
GAN currently has great opportunities for growth following the US Supreme Court’s decision to repeal PASPA in May.
Deals with Parx Casino in Pennsylvania, Ocean Resort Casino in New Jersey and from providing services to operator Paddy Power Betfair are all expected to help future revenues and growth.
Other avenues for growth include the launch of simulated gambling with the Mississippi Band of Choctaw Indians.