Shares in B2B gambling software provider GAN (GAN:AIM) rocketed 27% higher to 92.5p today after the company said it would seek a US listing instead of hawking itself around for sale and reported a 145% growth in first half revenues to £11.3m.
In March the company announced that it would conduct a strategic review after receiving ‘multiple bids’ from interested parties.
The board has decided to terminate the formal sale process, after concluding that it was unlikely to produce the most attractive outcome for shareholders.
In addition the company provided a trading update for the eight months up to and including 31 August 2019, saying that trading was ‘significantly ahead’ of the board’s expectations.
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GAN reported a profit before tax of £0.7m compared with a loss of £3m last year and earnings before interest, tax, depreciation and amortisation (EBITDA) of £3m.
Chief executive Dermot Smurfitt commented: ‘We have an incredibly positive outlook for the remainder of 2019, as the recent launch of Internet sports betting and casino gaming in Pennsylvania, the company's current sales pipeline and existing contracted clients are projected to significantly enhance GAN's revenue and EBITDA prospects’.
GAN provides gaming software to Flutter Entertainment (FLTR), formerly PaddyPowerBetfair, which has the largest presence in the US through its ownership of FanDuel.
The company has extended its service contract for the provision of a multi-year contract as well as additional services in New Jersey, West Virginia and Pennsylvania.
GAN launched internet casino gaming in Pennsylvania on 15 July for the states’ largest land-based casino Parx Casino.
Following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in May last year, the company is well positioned to licence out its platform technology as other US states legalise gambling.
To give an idea of the current momentum in New Jersey, the first Sunday of the NFL saw 10 times more online gamblers than 2018, which was 1.4 times more gamblers online for the Superbowl on 3 February.
GAN is currently in additional patent licence discussions with major US land-based casino operators. The company has indicated that it will seek an US listing sometime in 2020.