The leading North American business-to-business (B2B) technology provider, delivering real money iGaming solutions and leading online betting operator, GAN, released its latest financial results Thursday. The company disclosed details regarding its financial performance for the first quarter of 2024 or the three months ended March 31, 2024. The recently released results, pointed to a decrease in revenue year-over-year, partially offset by decreases in operating expenses.
Overall, GAN reported total revenue of $30.7 million, a result that marked a 13% year-over-year decrease. The company explained that the notable decrease was the result of a dip in its business-to-consumer (B2C) operations.
B2B operations in Q1 this year recorded an increase of $1 million. For the same period in 2023, B2B revenue halted at $11.3 million, while in Q1 this year, it increased to $12.3 million, a growth primarily driven by GAN’s B2B expansion across Nevada.
In contrast to the growth in the B2B segment, as noted, the company’s B2C operations recorded a decrease during the latest trading period. In total, GAN’s B2C revenue halted at $18.3 million, a result that was nearly $5 million below the $23.9 million figure from the first quarter of the prior year.
In Q1, the Company Decreased Its Operating Expenses
On the bright side, GAN reported a decrease in operating expenses. In Q1 2023, the company’s operating expenses hit $31.0 million. For the corresponding period this year, those expenses halted at $24.6 million, a result that GAN attributed to its “overall reduction of compensation costs and reduced headcount realized as part of ongoing cost saving initiatives, as well as lower D&A as a result of intangible assets fully amortizing in the prior year period.”
“Our first quarter saw strong B2B revenue growth of nearly 10% as well as successful ongoing cost initiatives to reduce our overall operating expenses by 20%.“
Seamus McGill, CEO at GAN
Seamus McGill, GAN’s CEO, spoke about the latest results, revealing that the company was able to reduce its operating expenses during the most recent trading period by 20%. Additionally, he highlighted the exceptional performance of the company’s B2B segment which saw revenue increase of 10%.
Still, McGill spoke about the underperformance of GAN’s B2C operations. He explained: “Our B2C revenues were impacted by a lower sports margin, though we are excited about the pending rollout of new products such as pre-built parlay bets and the upcoming major events like the European Championship as well as Copa America – one of the largest soccer tournaments in Latin America where Coolbet is particularly strong.”
McGill spoke about the ongoing efforts of the company toward closing the merger with SegaSammy. The executive reiterated that the strategic merger received overwhelming approval earlier this year, adding that the company recently submitted the required application with the Committee on Foreign Investment in the US, as well as other relevant gambling regulatory bodies.
