US-facing software, services and gaming content supplier GAN has reported full-year trading in 2019 is forecast to be ahead of market expectations, thanks to the strong performance of online gambling in New Jersey and Pennsylvania.
Ahead of reporting its preliminary results, GAN stated that revenue growth for FY 2019 is expected to be in the range of 115 per cent and 120 per cent and with year-over-year EBITDA margin between 30 per cent and 35 per cent, which compares to prior-year EBITDA margin of minus 14 per cent.
Factors at play included strong demand from the start of the NFL season; cross-selling of sports bettors to online casino; performance-related payments received relating to the launch of Pennsylvanian internet sports betting for certain clients; the faster-than-expected ramp in Pennsylvanian sports bettors; the launch of sports betting in Indiana; and revenue derived from overseas internet casino delivered by GAN to the Chickasaw Nation of Oklahoma in selected European markets.
Dermot Smurfit, CEO of GAN, said: "We are delighted with our full year performance in 2019, which proved the long-theorised margin opportunity available to GAN as a specialized enterprise software provider and provides a solid foundation for 2020 and beyond.
“Our intellectual property and technical expertise put us at the forefront of the Internet sports betting and casino gaming market as demonstrated by our diverse and expanding client base.
“Our recent new client announcements, continued focus on acquiring additional new clients and expectations for further real-money internet gambling legislation to pass in new states in the US set the stage for 2020 to be yet another very exciting year.”
