Losses persist at Game Account Network
News on 1 Oct 2016
News on 1 Oct 2016
On Friday Dermot Smurfit’s GameAccount Network (GAN) business posted its H1-2016 numbers, reporting a net pre-tax loss of GBP 2.3 million – an improvement on the GBP 2.6 million it lost in the same period last year.
On the brighter side, the company’s social casino operations produced a 75 percent rise to GBP 1.4 million in revenue thanks to some solid deals in the US for its Simulated Gaming social casino product.
Other highlights from GAN’s half-year included:
* Gross income of GBP 15.9 million;
* Net revenue of GBP 3.9 million – up 35 percent y-o-y;
* Online gambling revenue from real-money operations rose 21 percent to GBP 2.5 million. These activities are generating cash from the UK, Italy, Spain and New Jersey in the USA, where a legalised online gambling market is available;
* Two thirds of revenue came from US operations, vindicating Smurfit’s decision to focus strongly on tribal and other land casino markets with his Simulated Gaming product, although US take-up has been slower than he would like;
* Cash on hand down significantly at GBP 4 million (H1-2015: GBP 7.6 million), although a post-period fund raising drive has delivered another GBP 1.8 million to the company treasury.
