GAN reports full-year 2024 revenue increase as Sega Sammy deal nears completion
B2B and B2C firm sees Q4 revenue rise 3% year on year, as further regulatory and compliance steps checked off ahead of M&A transaction
GAN has posted a total revenue increase of 3% year on year (YoY) on the back of an improved performance in the firm’s B2C segment.
The operator saw total revenue come in at $31.7m (£24.5m), with GAN noting adjusted EBITDA was a nominal positive in Q4 compared to a loss of $3.9m the previous year.
B2C revenue rose from $18.9m to $22.7m due to increased played activity in Europe. However, this was offset by reduced player activity and an unfavourable exchange rate in Latam. GAN also reported a decline in active customers during Q4 as a part of limited customer acquisition in Latam.
While B2C revenue increased, B2B revenue fell from $11.8m to $9m on the back of a B2B partner exit during the quarter.
Operating expenses decreased to $23.4m from $29.5m, with GAN attributing the slip to an overall reduction in compensation costs and reduced headcount as part of company cost-saving initiatives.
There was also a net loss of $4.2m, compared to a $9.4m loss in Q4 2023, due to an increase in revenue and decrease in operating expenses.
For GAN’s full-year 2024 results, total revenue increased 4% YoY to $135m, driven by an increase in B2B revenue, up from $43.2m recorded for FY 2023 to $50.7m for 2024.
B2C segment revenue for the year fell from $86.3m in 2023 to $84.3m in 2024. As with B2C revenue for Q4, full-year results were also impacted by reduced player activity and unfavourable exchange rates in Latam offsetting growth in Europe.
Adjusted EBITDA in FY 2024 stood at $8.6m, after a loss of $8.4m the year prior, thanks to increased revenue and lower operating expenses.
Alongside the earnings release, GAN said its shareholders had approved the merger with Sega Sammy, along with the deal receiving clearance from the Committee on Foreign Investment in the US.
Those steps come after the Nevada Gaming Commission gave a green light to the deal progressing. The transaction is expected to close in Q2 2025.
Commenting on the results and the completion date of the $107.6m Sega Sammy merger, GAN CEO Seamus McGill said: “I’d like to thank our entire global team for continuing to execute and grow our business on a streamlined cost structure.
“This led to stronger financial performance in 2024, with growth in both the top and bottom line.
“We are simultaneously working diligently to close our merger with Sega Sammy. We continue to work through the remaining regulatory requirements and expect the merger to be successfully completed in the second quarter of 2025.”