Virtual reality gaming company see 21% revenue growth
Companies: GAN Plc
British B2B game developer GAN plc (LSE: GAN) announced strong H1 results this morning, reporting gross income of £15.9m (a 21% increase year-on-year), net revenue of £3.9m (+25% YoY), and loss before tax of £2.3m (-£2.6m H115).
The group has cash and cash equivalents of £4m at 30 June, with net assets of £10.5m.
According to today's update, the Group continued to focus on building substantial recurring revenues whilst maintaining tight control over the underlying cost base of the business:
"Revenues from both Simulated GamingTM in the US market and real money Regulated Gaming in the sustainable markets of Italy and New Jersey have shown material growth."
Revenues from platform development have increased significantly, primarily due to new customer development fees in advance of commercial launch.
The Group said it had invested heavily in the underlying Internet Gaming System and product offering during the period and would continue to do so, aiming to meet the ongoing market demand and ensuring that it continues to be in a position to capitalise on the immediate opportunities in the US market.
Operationally, the group performed well, signing four new clients and boosting US active players of its products to 3m (an increase of 177% year-on-year). The company launched its first B2B Virtual Reality casino app for Empire City Casino, extending its products from web and mobile into the PC VR market.
CEO Dermot Smurfit said the first half of the year had seen further investment for GAN in acquiring US market share for both Simulated Gaming™ and real money Regulated Gaming:
"The performance is in line with management expectations.
We have continued to focus on building a substantial recurring revenue base to offset this investment and achieve future profitability...
As the numbers illustrate our investment in the business continues. Our financial results continue to be impacted by factors outside of our control including delays in further intra-State regulation of real money Internet gaming together with continued delays in securing additional system sales on commercially attractive terms."