Online gambling technology provider GAN saw its social casino revenue rise three-quarters in H1 2016 but the company continued to post seven-figure losses.
Figures released Friday show the UK-listed GAN generating gross income of £15.9m and net revenue of £3.9m in the six months ending June 30. GAN reported a net loss before tax of £2.3m, £300k less than it lost in H1 2015.
The net revenue figure is 35% higher than the same period last year, driven by contributions from its Simulated Gaming social casino product, which saw revenue jump 75% to £1.4m. GAN’s real-money online gambling revenue was up 21% to £2.5m.
Nearly two-thirds of the company’s revenue was generated in the United States, reflecting the string of Simulated Gaming deals with leading commercial and tribal casino operators. GAN says its social gaming business has been a godsend by helping to offset the slower than expected rollout of US intrastate online gambling markets.
GAN’s real-money activity is based in the UK, Italy, Spain and New Jersey, and GAN says its New Jersey business “out-performed growth expectations” thanks to improved payment processing options. GAN expects this growth to continue for the rest of 2016. Since June 30, GAN inked another unidentified New Jersey real-money client that expects to launch in Q1 2017.
GAN also offered slightly more detail on its deal with an existing US Simulated Gaming casino client to launch a European-facing real-money online gambling site. GAN says the site will launch in H1 2017, pending regulatory approval. GAN plans to merge its existing MoneyGaming.com B2C business with the mystery client’s new online casino. GAN’s B2C revenue accounted for a mere £200k in H1.
GAN says it its cash on hand has dwindled to £4m from £7.6m at the end of H1 2015, meaning it can’t go on posting seven-figure net losses too much longer. The company undertook share placings that raised £2.6m in Q2 and a further £1.8m in Q3, which should help to keep the lights for a while.