The Irish online gambling software provider Game Account Network (GAN) has posted a GBP 2.6 million pre-tax loss for 2014 despite a rise in underlying net revenue of 20 percent to GBP 6.5 million.
CEO Dermot Smurfit revealed that GAN has focused much of its expansion on securing a foothold in the United States as it gears up for the legalisation of online gambling in that country, partnering with a number of land casinos in Connecticut and New York to provide ‘simulated gaming systems’ to allow customers to experience the products without being able to wager real money bets using them.
The GAN system is used for real-money action in the legalised New Jersey market by Betfair, which has partnered with the Tropicana land casino in Atlantic City to go online in the state .
The company has also signed a deal in Australia.
Smurfit said that the company remains committed to positioning itself to capture growth in online gambling markets.
“Real-money internet gaming in New Jersey and the pace of regulation in the US market has been slower than expected but we are confident in the long-term prospects for real-money gaming in the years ahead,” he said.
Highlights from the GAN report include:
* Net Revenue down at GBP 7.5 million (2013: GBP 12.3 million);
* Underlying Net Revenue up 20 percent to GBP 6.5 million (2013: GBP 5.4 million) excluding system sales of GBP 1 million (2013: GBP 6.9 million);
* Clean Ebitda loss of GBP 1.4 million (2013: Earnings of GBP 4.1 million);
* Loss before tax of GBP 2.6 million (2013: Profit before tax of GBP 1.6 million);
* Loss per share of 5p (2013 EPS 4p);
* Cash and cash equivalents at the end of the year of GBP 10.8 million (2013: GBP 16.9 million);
* Net Assets at the end of the year of GBP 15.2 million (2013: GBP 17.7 million)
The company listed the following strategic develkopment during the year:
* Launched Simulated Gaming in the US and signed three new US casino clients;
* Post period end signed two further Simulated Gaming clients in the US and launched Simulated Gaming for Parx Casino Pennsylvania and in Australia with a consortium of clubs;
* Internet gaming platform delivered for Betfair in New Jersey;
* Strategic patent awarded in support of Simulated Gaming;
* Launched new iSight Back Office in US and Europe;
* Invested in US and UK infrastructure: technical, licensing, people and patents;
Smurfit said that the State of Pennsylvania appears to be in the process of regulating Internet gaming with a number of legislative bills under active consideration.
“GameAccount Network has been selected as the exclusive platform for both Simulated Gaming and regulated real-money Internet gaming by Parx Casino, the leading casino operator in Pennsylvania, and is positioned in 2016 for substantial growth in regulated real-money Internet gaming in Pennsylvania should suitable legislation be enacted in 2015,” he said, adding that Simulated Gaming represents a US market opportunity estimated at $250 million in 2015.
Smurfit confirmed that full year revenue from gaming system sales was down year-on-year, but said that the company was actively engaging with multiple potential system buyers and remains confident in its ability to continue to deliver on sales of gaming systems to casino equipment manufacturers, although the timing of such sales remains uncertain.