LONDON (Alliance News) - Internet gaming services supplier GAN PLC on Friday reported a widened loss for 2018 despite increased revenue, as the group puts itself up for sale as part of a strategic review.
GAN has started a formal sale process while it considers strategic alternatives, in particular for the group's US assets.
Alternatives include GAN listing on a US stock exchange either in addition to or replacing its current stock market quotations. It also could seek funding by means of an investor acquiring a non-controlling stake in the group.
Advisory firm Union Gaming has been appointed by GAN as its financial adviser for the review. Currently GAN is not in any discussions for a potential sale, it said.
Shares in GAN were down 2.0% at 50.00 pence on Friday morning.
For the recent year, GAN posted a widened pretax loss of GBP6.7 million from GBP4.2 million in 2017, despite revenue increasing to 16% to GBP10.6 million from GBP9.1 million.
The widened loss was due to higher costs, with distribution costs rising to GBP9.7 million from GBP8.0 million the prior year, while administrative expenses climbed up to GBP7.3 million from GBP5.5 million.
Revenue growth was fostered through GAN's further expansion into the US market, as well as the contribution of revenue from clients in Italy.
Currently the US stands as the core strategic market of the group, accounting for 62% of total revenue.
Segmentally, Real Money Gaming revenue rose 25% to GBP6.3 million from GBP5.0 million the year before, while Simulated Gaming revenue edged up by 4.9% to GBP4.3 million from GBP4.1 million.
Looking ahead, GAN said it remains confident in its prospects for 2019, with the group's performance in the year-to-date exceeding management expectations.
In a separate announcement, GAN said Non-Executive Director Roger Kendrick retired from his role with immediate effect after 11 years since 2008.
"2018 was a milestone period for GAN as we continued to adapt to positive changes in our online gaming market and as a result feel that the Company is well positioned for the coming year," said Chief Executive Officer Dermot Smurfit.
"As a direct consequence of our short term investment cycle undertaken and completed principally in the second half of 2018, GAN's performance to date in 2019 is exceeding our expectations," Smurfit added.
