GAN expects earnings to beat market expectations

GAN, the online gaming software company formerly known as Game Account Network, expects trading for 2019 to be ahead of market expectations with earnings anticipated to be in the range of £7 million to £8 million, a trading update from the company suggested.

The Dermot Smurfit led business told the stock exchange that it will likely post revenue growth of between 115 per cent and 120 per cent over the previous year, implying revenue in the range of £22.7 million and £23.3 million. Earnings will rise by between 30 per cent and 35 per cent, it said.

GAN, which supplies internet gambling software and licences its proprietary software system principally to land-based US casino operators, said the better than anticipated results follow higher than expected demand for internet gambling in both New Jersey and Pennsylvania and a launch of internet sports betting in the US state of Indiana in October, amongst other factors.

GAN, which on Friday will formally initiate its plans for a US stock exchange listing, also announced that it had signed up a new client for its simulated gaming software, the Snoqualmie Indian Tribe, which owns and operates the Snoqualmie Casino based about 25 miles east of Seattle.

Company broker Davy noted that revenues and profits at the company have progressed strongly with the latter “substantially ahead of our forecast”.

Nasdaq listing

As for the coming year, GAN was light on detail where trading is concerned but flagged its plan to trade on the Nasdaq “as soon as reasonably practical”. “As a result of this US listing process, and associated SEC compliance obligations relating to forward looking statements, no outlook can be provided at this time,” it said.

But chief executive Dermot Smurfit suggested that the coming financial year will be “yet another very exciting year” for GAN with its “recent new client announcements, continued focus on acquiring additional new clients and expectations for further real money internet gambling legislation to pass in new states in the US”.

Davy analysts Michael Mitchell and Jack O’Halloran commented that the company “appears in good stead as we enter another important year for the US market”.