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Trading Statement

31 January, 2020
LONDON STOCK EXCHANGE (LSE): GAN
 
Trading Statement
 
GAN Expected to Post 2019 Year-End Financial Results Ahead of Expectations,
Company to File Registration Statement on Form F-1 as Part of U.S. Listing Process
 
London | January 31, 2020: GAN plc (“GAN” or the “Company”), an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today provided a trading update ahead of its preliminary results for the year ended December 31, 2019 (FY 2019).
 
2019 Financial Highlights
Trading for FY 2019 is expected to be ahead of market expectations with year-over-year revenue growth in the range of between 115% and 120% and year-over-year EBITDA1 margin in the range of between 30% and 35%, which compares to prior-year EBITDA1 margin of -14%. GAN ended FY 2019 with a strong, debt-free balance sheet and positive cash flow for the year.   
 
Trading was ahead of expectations as a result of the following factors:
  • Higher-than-expected demand for Internet gambling in both New Jersey and Pennsylvania following commencement of the National Football League (“NFL”) season on September 5, 2019;
  • Higher-than-expected cross-selling of Internet sports bettors to Internet casino gaming in both New Jersey and Pennsylvania;
  • Performance-related payments received relating to the launch of Pennsylvanian Internet sports betting for certain clients;
  • Faster-than-expected ramp in Pennsylvanian sports bettors, relative to the prior-year launch of Internet sports betting in New Jersey;
  • Launch of Internet sports betting in the State of Indiana in October 2019; and
  • Certain revenue derived from the Overseas Internet Casino delivered by GAN to the Chickasaw Nation of Oklahoma in selected European markets.
 
2020 Outlook
Later today, being January 31, 2020, GAN plc expects to file the required F-1 filing to the U.S. Securities Exchange Commission (“SEC”), formally initiating the U.S. listing process and ultimately seeking admission to trading on NASDAQ as a Foreign Private Issuer as soon as reasonably practical. As a result of this U.S. listing process, and associated SEC compliance obligations relating to forward-looking statements, no outlook can be provided at this time.
 
Management Commentary
Dermot Smurfit, CEO of GAN commented:
 
"We are delighted with our full year performance in 2019, which proved the long-theorized margin opportunity available to GAN as a specialized 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. Our recent new client announcements, continued focus on acquiring additional new clients and expectations for further real money Internet gambling legislation to pass in new States in the U.S. set the stage for 2020 to be yet another very exciting year.”
 
1 Clean EBITDA is a non-GAAP Company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expenses and other items which the directors consider to be non-recurring and one time in nature.
 
GAN: Overview
GAN is a leading business-to-business (“B2B”) supplier of internet gambling software-as-a-service solutions (“SaaS”) to the US land-based casino industry. The Company has developed a proprietary internet gambling enterprise software system, GameSTACK™, which it licenses principally to land-based US casino operators as a turnkey technology solution for regulated real-money internet gambling, encompassing internet gaming, internet sports gaming and virtual Simulated Gaming. 
 
GAN is listed on the London Stock Exchange (LSE: GAN).
 
This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.
 
For more information please visit www.GAN.com.
 
 
 
For further information please contact:
 
GAN US Investors: The Equity Group
Jack Wielebinski Adam Prior
Head of Investor Relations aprior@equityny.com
+1 214 799 4660 212.371.8660
jwielebinski@GAN.com  
Carolyne Sohn
csohn@equityny.com
415.568.2255
 
  UK & Ireland Investors: Newgate Communications
  Adam Lloyd
Giles Croot
  GAN@Newgatecomms.com
  +44 (0) 20 3757 6880
 
  Davy (Nominated Adviser and Joint Broker)  
  John Frain / Barry Murphy  
  +353 1 679 6363  
   
Liberum (Joint Broker)
 
  Neil Patel / Cameron Duncan  
  +44 (0) 20 3100 2000  
 
 

Recent News

30 March, 2020
GAN Reports February 2020 Internet Gambling Growth For Pennsylvania

 

London | March 30, 2020: GAN plc (“GAN” or the “Company”), an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today updated the market following the publication on March 18, 2020, by the Pennsylvania Gaming Control Board (“PGCB”) of Internet gaming and Internet sports betting financial information for the calendar month of February 2020 in Pennsylvania. 

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27 March, 2020
GAN Confirms Internet Gambling in the State of Michigan

London | March 27, 2020: GAN plc (“GAN” or the “Company”), an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today provides more information on the previously confirmed closure of certain market access arrangements with the Sault Tribe of Chippewa Indians (“Tribe”) in the State of Michigan, following the December 23, 2019, passage into Michigan law HB 4311, a bill that includes provisions for the legalization of full real money Internet casino gaming in the State of Michigan as well as Internet sports betting.

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25 March, 2020
Public Filing of Registration Statement on Form F-1 for U.S. Listing on the Nasdaq

London | March 25, 2020: GAN plc (“GAN” or the “Company”), an award-winning developer and supplier of enterprise-level B2B Internet gambling software, services and online gaming content in the United States, today provided a market update including an update in light of the recent developments regarding COVID-19. 
 
The Company maintains online only gaming operations, and the successful implementation of “Work from Home” was completed on March 13. As a wholly digital business, GAN has not experienced any interruption in technical development, and/or technical operations conducted to support its clients. Furthermore, early indications of a material shift from retail gambling to online gambling is anticipated to be positive for GAN’s overall revenue opportunity during this time.

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