GAN PLC Trading Statement (7346T)
10 January 2017 - 6:00PM
UK Regulatory
TIDMGAN
RNS Number : 7346T
GAN PLC
10 January 2017
LONDON STOCK EXCHANGE (LSE): GAN | IRISH STOCK EXCHANGE (ISE):
GAME
GAN
Trading Statement
GAN plc ("GAN" or the "Company") provides an update on trading
for the year ended December 31, 2016.
GAN performed in line with expectations during the second half
of 2016 in both its real money Regulated Gaming and Simulated
Gaming activities and the outlook for 2017 is positive. The Company
benefited from cost management and foreign exchange movements and
generated positive clean EBITDA(1) in Q4 2016.
In real money Regulated Gaming, GAN's New Jersey business
continues to enjoy favourable market conditions and performed
strongly in 2016. Net Revenue growth in Italy has continued in H2
where the Company has benefitted from the seasonally strong Q4
period.
GAN's US-facing Simulated Gaming business continued to benefit
from the launch of major new US casino operator clients in H2 2016
including Isle of Capri, JACK Entertainment and Twin River with
Chickasaw Nation, Borgata and TurningStone all scheduled for launch
before the end of Q1 2017 followed by Station Casinos in Q2 2017.
By the end of H1 2017 GAN anticipates operating Simulated Gaming
for twelve (12) major US casinos coast-to-coast together
representing in excess of $8bn in annual land-based gaming
revenues.
Regulation of real money Internet gaming in Pennsylvania remains
on the legislative agenda and GAN notes the filing and publication
of Pennsylvanian Senator Jay Costa's memo(2) on January 2, 2016
stating an intention to introduce legislation based on HB 1887 in
the near future, which may result in the regulation of Internet
gaming in Pennsylvania. GAN currently serves Simulated Gaming to
Pennsylvania's market-leading land-based US casino Parx Casino with
provision to supply real money Regulated Gaming in the event
suitable enabling legislation is enacted.
GAN previously announced that it had signed an agreement with
Borgata Hotel Casino & Spa ("Borgata") for the launch of
Borgata's Simulated Gaming online experience, which is currently
expected to launch in Q1 2017 and which will contribute materially
to GAN's revenue and earnings. In addition, the agreement also
provided GAN the opportunity to service Borgata's real money
Regulated Gaming business, subject to certain conditions being met
by Borgata. The Company has now received formal notification from
Borgata that such conditions have not been met as a result of third
party circumstances outside of GAN's control and despite the
delivery by GAN of a best-in-class Internet gaming platform
fully-integrated with Borgata's rewards program and certified by
the Division of Gaming Enforcement to the most recent and highest
standards of regulatory compliance in New Jersey. The Company
remains in commercial discussions with Borgata regarding other
opportunities for GAN to participate in Borgata's real money
Regulated Gaming business.
Further cost management actions and the expansion of engineering
resources into the lower cost Bulgarian market will deliver
positive financial benefits to GAN in 2017.
The Company will release its results for the year ended December
31, 2016 on April 26(th) 2017.
(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.
(2)
http://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20170&cosponId=21686
For further information please contact:
GAN
Dermot Smurfit
Chief Executive Officer
+44 (0) 20 7292 6262
dsmurfit@GAN.com
The Equity Group NY
Adam Prior
Senior Vice President
+1 212 836 9606
aprior@equityny.com
Davy
John Frain / Roland French
+353 1 679 6363
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLIFIILVIILID
(END) Dow Jones Newswires
January 10, 2017 02:00 ET (07:00 GMT)
GAN (NASDAQ:GAN)
Historical Stock Chart
From Apr 2024 to May 2024
GAN (NASDAQ:GAN)
Historical Stock Chart
From May 2023 to May 2024