GAN 2021 revenue skyrockets 257% thanks to Coolbet and B2B gains
Technology supplier reports full year rises across all operational segments despite rising net losses
GAN has reported a 257% year-on-year (YoY) revenue increase in its 2021 revenue, rising to $125.4 (94.8m) from a prior 2020 high of $35.2m.
Delivering its financial report for the period, the Nasdaq-listed supplier attributed the rise to gains driven by its $177m acquisition of Coolbet in November 2020 and “strong growth” in its B2B segment.
At a divisional level, B2B revenue rose to $46.8m during 2021 from a prior high of $35.2m, an increase of $10.7m derived from platform and content fees accrued during the period.
This included new RMiG (Real Money Internet Gaming) revenue from new states including Michigan, as well as West Virginia and Connecticut.
B2B gross operator revenue rose by 69% during 2021 to a whopping $921.1m, growth spurred by a combination of client launches in Pennsylvania and Michigan as well as organic growth.
B2C segment revenue amounted to $78.6m on a pro forma basis, a YoY increase of 133% and driven by what GAN labelled as “robust growth” in active customers.
GAN’s adjusted EBITDA losses narrowed from a 2020 loss of $2.3m to just $100,000, thanks to the full integration of the Coolbet business and B2B revenue growth.
The firm’s net losses during 2021 grew by 23% YoY to a 2021 high of $24.9m, with losses increasing due to higher operating costs across the wider GAN business caused by its growth.
At a Q4 2021 level, GAN’s total revenue rose 242% YoY to $30.5m from a Q4 2020 low of just $8.9m.
B2B revenue rose 26% YoY during Q4 2021 to $11.2m from a 2020 figure of just $8.9m, while B2C revenue amounted to $19.2m in the same period.
GAN has confirmed its expectation to achieve full-year 2022 revenue of between $155 and $165m, or a year over year growth rate of 28%.
Company adjusted EBITDA is expected to be within a range of $15m to $20m, based on GAN’s expectation of the effects of better scaling on its operational leverage.
“Our focus in 2022 is placing additional emphasis on our path to profitability and ensuring we capture the margin profile we are capable of attaining,” GAN chief financial officer Karen Flores said.
GAN CEO Dermot Smurfit welcomed the strong results, coming despite quarter-on-quarter declines in its B2C division.
“Our fourth quarter financial results were adversely affected by the volatile sports margin in our B2C segment consistent with other International operators, which was partially offset by continued strong new customer growth,” Smurfit explained.
“However, our fourth quarter was highlighted by strategically important wins for GAN, along with new state launches for clients such as FanDuel in Connecticut and our entrance into Ontario when igaming and online sports betting officially goes live.
“We have not lost sight of the fact that we delivered incredibly strong revenue growth in 2021, made numerous strategic steps toward solidifying our future and are projecting another year of very strong revenue growth, as well as much improved profitability as we achieve better scale,” the GAN CEO added.