GAN reported a mixed second quarter, with top-line growth of 2%.
Overall, the company generated $35 million in revenue, a slight increase from the previous year’s $34.4 million. This increase is largely due to GAN’s B2B segment, which generated $14.2m, a 36% increase year on year.
The company attributed this to an increase in development services, as well as hardware sales and organic growth in US real-money iGaming more broadly.
However, GAN’s B2B performance was offset by a decline in B2C. This latter area generated $20.8 million in revenue in the second quarter, down from $24 million.
This drop was caused by a 7.1% drop in the sports margin, as well as a $2.4 million hit from the “unfavorable impact of foreign currency fluctuation.”
Nonetheless, GAN’s gross profit increased year on year, rising from $24 million to $24.5 million, but despite this slight increase, the company’s net loss widened.
GAN’s net loss increased from $3.8 million to $38.3 million in the second quarter of last year. In GAN’s Q2 earnings call, Karen Flores, the company’s CFO, stated that this included a $28.9 million non-cash impairment charge related to the acquisition of Coolbet.
Furthermore, the company’s adjusted EBITDA fell from $3.5 million to $1.3 million year on year. “Our deliberate, focused efforts to improve our profitability are bearing fruit in the midst of the difficult macroeconomic and inflationary environment, as evidenced by our adjusted EBITDA in the quarter,” Flores said.
“All of our cost-cutting initiatives have been carried out without jeopardizing our longer-term strategy or ability to accelerate future growth.”
On a half-year basis, revenue increased from $62.2 million to $72.5 million.
However, GAN now expects to generate between $142.5m and $152.5m in total revenue for 2022, a decrease from previous full-year guidance.