Dual business model fuels GAN’s strong preliminary Q2 results

GAN announced its preliminary second quarter results for 2021 on July 7, reporting better-than-expected performances across both its B2B and B2C segments.

The global gaming solutions provider expects to report Q2 revenue of $34m to $35m, and increased its full-year revenue expectations to between $125m and $135m.

GAN also expects positive adjusted EBITDA in the range of $3m to $7m, which will more than offset its strategic investments in talent and technology, most notably Coolbet, which it acquired in late 2020.

The market responded well to the news, with GAN’s stock up approximately 13% in pre-market trading on July 8.

“Momentum has carried through the second quarter and driven continued sequential top-line growth for the business,” said GAN CEO Dermot Smurfit.

“The B2B business is performing in line with our expectations and continuing to win new clients here in the US while the B2C business is capitalizing on the Latin American market opportunity, equipped with a highly social sports offering delivering viral customer acquisition.”

GAN’s dual business model has proven a successful driver of the Q2 growth. The firm’s B2B segment in the US, which counts Churchill Downs and Wynn among its clients, has seen steady growth thanks to the continued rollout of sports betting and igaming stateside.

Its B2C segment in Europe and Latam, meanwhile, has been buoyed by the acquisition of Coolbet, a leading online sportsbook operator that has customers in both regions and recently expanded into Canada and Peru.

“Looking back, we identified and acquired a business at the outset of this year that is now performing significantly ahead of plan,” Smurfit said of Coolbet.

“We are very pleased with where we stand halfway through the year on both our segments and look forward to providing more detail next month.”

GAN is set to provide a more detailed Q2 performance update, along with its 2021 fiscal year guidance, on August 16.