GAN has announced its Q2 2023 financial results, showing a decrease in revenue from $35m in Q2 2022 to $33.8m in the current quarter.
When breaking down the revenue, B2B revenue dropped to $9.9m, down 30%. Meanwhile, B2C revenue increased by 15% to $23.9m.
However, the statement reveals that its decrease in B2B revenue was, “primarily attributable to a decrease in our contractual revenue rates pursuant to the agreement regarding an exclusivity period with a B2B customer.”
The company also announced that the increase in B2C revenue was, “primarily related to growth in both our European and Latin American operations that was driven by a higher sports and casino hold percentage.”
When split geographically, the Europe saw the greatest increase year-over-year, rising 19% to $12.1m. Meanwhile, the US saw the greatest drop of revenue of 38% down to $7.3m.
The graph shows the amount occured in revenue across different geographical locations.
Adjusted EBITDA went into the negative, going down to minus $2m versus the positive $1.3m year-over-year. The decline was primarily related to the decline in revenue in the B2B segment.
Net loss got better for the company, recovering from a loss of $38.3m in Q2 2022 and reducing it to $18.4m in Q2 2023. The net loss this quarter includes a loss on debt extinguishment of $8.8m as a result of the company entering into the Amended Credit Facility.
The supplier also managed to decrease its total operating costs and expenses down to $42.3m from $72.7m year-over-year. The decrease was primarily attributable to a $28.9m impairment charge in the prior-year quarter.
Subsequent to the quarter end, GAN launched its B2B sports betting technology and trading solution, GAN Sports with WynnBet in six states: Indiana, Tennessee, Arizona, Louisiana, Virginia and Colorado.
Dermot Smurfit, CEO of GAN, stated, "Our second quarter saw solid execution and progression of our business plan. We continued to see strength in international markets for B2C, expanded our roll-out of GAN Sports and made significant progress on the new GameSTACK 2.0 version of our technology platform.
“With GAN Sports now live in nine U.S. states and the encouraging momentum we are seeing in our international markets, we would expect our top-line performance to improve over the coming quarters and into 2024."
