Golden Nugget Online Gaming Q2 revenue up 28% as US expansion pays dividends
Soon-to-be DraftKings subsidiary reports widening net losses but 110% rise in active first-time depositor numbers
Golden Nugget Online Gaming (GNOG) has posted Q2 2021 year on year revenue growth of 28%, with revenue hitting $24.8m.
Company adjusted EBITDA dropped to a loss of $3.8m compared to a prior EBITDA figure of $8.5m achieved during Q2 2020, a decline which the company attributed to “growth investments” in the Michigan market.
In tandem with this loss, GNOG reported net losses for Q2 of $1.6m, down in comparison to the net income of $100,000 reported 12 months prior.
Active first-time depositors (AFTDs) increased by 110% in Q2 2021, while the first half of the year saw AFTDs rocket 313%.
In H1 2021, company revenue increased by 39% year on year to $58.4m, up substantially from the $42.2m generated during the same period last year.
Net income for H1 amounted to $68.1m, while adjusted EBITDA over the same period fell to a negative adjusted EBITDA figure of $7.4m.
GNOG president Thomas Winter referenced continuance of GNOG’s “strong” growth trajectory during H1.
“In Michigan, we more than tripled our market share since launch which validates our steady, ROI-focused growth investments. In the second quarter we grew GGR, 99% over the first quarter while the rest of the market only grew 35%,” Winter explained.
“In July, the positive trend continued with GGR over $5.3m, a 32% increase over the monthly average in the second quarter, making GNOG the fifth largest igaming operator in the state, with a market share of 5.7%.
“In New Jersey, where market revenues had been boosted by the pandemic last year, we were still able to grow net revenues by 8.9% in the first six months of 2021 compared to the prior year period,” the GNOG president added.
On the technology front, the company said the GNOG app was live in the Google Play Store across New Jersey and Michigan, while the 1,800 sq ft expansion of its live dealer studio housed in its Atlantic City property, which will boost capacity from 18 to 33 tables, is slated to be up and running by the end of Q3.
GNOG was also among the first wave of operators to launch live dealer games in Michigan on July 22.
Earlier this month, DraftKings agreed an acquisition worth approximately $1.56bn for the GNOG brand, a deal which is expected to close before the end of the year.
The purchase, which was on an all-stock basis, is aimed at providing DraftKings with a casino-first brand to target slots players and a cohort of customer disinterested in sports betting and DFS.
This week, GNOG agreed an exclusive partnership with Boom Entertainment which includes exclusive game content and access to the Ohio market through Boom’s network of local partners.