GAN expects to beat expectations on heightened demand

(Sharecast News) - Internet gambling firm GAN expects to post full-year results ahead of market expectations thanks to higher-than-expected demand for its products.
GAN said on Friday that revenues were expected to have grown 115-120% year-on-year in the year ended 31 December, while EBITDA margins were set to have improved to 30-35%.

The AIM-listed group said its solid performance was a result of higher-than-expected demand for internet gambling in both New Jersey and Pennsylvania after the National Football League season kicked off on 5 September 2019, as well as some stronger than anticipated cross-selling of internet sports bettors to casino gaming platforms.

GAN added that it ended the year with a strong, debt-free balance sheet and positive cash flow.

Chief executive Dermot Smurfit said: "We are delighted with our full-year performance in 2019, which proved the long-theorised margin opportunity available to GAN as a specialised enterprise software provider and provides a solid foundation for 2020 and beyond.

"Our intellectual property and technical expertise put us at the forefront of the Internet sports betting and casino gaming market as demonstrated by our diverse and expanding client base."

Separately, GAN announced that it had secured a contract to supply its simulated gaming software to the Snoqualmie Indian Tribe in Washington.

As of 1330 GMT, GAN shares were up 4.71% at 164.40p.