GAN, a leading developer and supplier of enterprise-level B2B gaming software and online gaming content, saw gross income increase by 21% to £15.9m in the six months to the end of June.
Net revenue rose to £3.9m (H1 2015: £2.9m), an increase of 35%, of which 64% originated from the United States.
Net revenue attributable to Simulated Gaming™ increased by 75% to £1.4m (H1 2015: £0.8m).
Net revenue attributable to real money Regulated Gaming increased by 21% to £2.5m (H1 2015: £2.1m).
Clean Ebitda loss narrowed to £0.5m (H1 2015: loss of £1.5m).
Loss before tax of £2.3m (H1 2015: Loss before tax of £2.6m) and loss per share of £0.04 (H1 2015: loss per share £0.05).
- Cash and cash equivalents at 30 June 2016 of £4.0m
- Net Assets at 30 June 2016 of £10.5m
- Successfully completed share placings raising gross proceeds of £2.6m in Q2 2016 and a further £1.8m in Q3 2016, positioning the Group for further growth
Chief executive Dermot Smurfit said: "The first half of 2016 has necessarily continued the period of investment for GAN in acquiring US market share for both Simulated Gaming and real money Regulated Gaming, and continuous improvements in the product offering. The performance is in line with management expectations.
"We have continued to focus on building a substantial recurring revenue base to offset this investment and achieve future profitability. In particular, Simulated GamingTM revenues have grown substantially year on year driven by new client launches and phasing in of marketing investment by existing clients of Simulated Gaming.
"In addition, we have seen encouraging growth in sustainable market revenues in both New Jersey and Italy. The rapid growth in Simulated Gaming revenues is particularly important as we believe over time they will substantially compensate for the slower than expected pace of the development of real-money Internet gaming in the US.
"We remain encouraged by the growth characteristics of Simulated Gaming and have already seen a major uplift in player activity as we begin to experience the onset of the seasonally strong Autumn/Fall period and the commencement of scale acquisition marketing for selected casino clients.
"In addition we have experienced further growth in our sustainable real money gaming markets both in New Jersey in the US and in Italy in our European market. New Jersey out-performed growth expectations due to underlying improvements in the New Jersey market’s payment processing infrastructure. This growth is expected to continue for the rest of the year.