Software supplier GAN is undertaking a strategic review as it considers a potential sale, listing on a US stock exchange or attracting investment through a non-controlling stake.
News of the review, which is being assisted by boutique investment bank Union Gaming, arrived as results showed GAN increased its net revenue by 16 per cent in 2018.
Gross income of £49.2m was an increase of 20 per cent on 2017’s £41.1m, Net revenue was up to £10.6m (£9.1m). The clean EBITDA loss was £1.5m (profit £0.5m) and losses after tax amounted to £6m (£3.5m).
Last year, GAN launched online sports betting for PaddyPower Betfair’s FanDuel in New Jersey and continued delivery of the firm’s New Jersey online casino business BetfairCasino.com through its platform.
In January 2019, GAN expanded its relationship with PaddyPower Betfair for the delivery of online sports betting and casino in Pennsylvania and West Virginia, while in February the firm expanded its relationship with Parx Casino to deliver online sports betting and casino into New Jersey.
Dermot Smurfit, CEO of GAN, said: “GAN has continued to position its business to capture growth in emerging online gambling markets in the US. 2018 saw significant progress with the launch of Internet sports betting together with the launch of just one single new client of Simulated Gaming as real money gambling initiatives drove our strategic decision-making.
“A number of significant commercial and strategic developments occurred in 2018 and early 2019. The most significant of these was the launch of Internet sports betting but the second most significant was the licensure of GAN's US Patent to PaddyPower Betfair's US subsidiary. Management believes that the recognition of GAN's US Patent significantly underpins GAN's intangible asset value and could potentially lead to further client partnerships and US Patent licensing revenue opportunities.”
GAN has also announced the retirement of Roger Kendrick as a non-executive director of the company.
