GAN shares slip as Q4 revenue drops 17%
B2B and B2C firm also reports full-year EBITDA losses as senior management make no commentary on financial performance for the reporting period
GAN has reported a 17% year-on-year (YoY) slip in Q4 revenue which has sent the firm’s share price falling by more than 7%.
The B2C and B2B company announced revenue for the final three months of the year landed at $30.7m, a $6.2m decrease on Q4 2022.
Of that revenue, B2B operations fell from $14.1m to $11.8m as GAN pointed to a decrease in contractual revenue rates following the expirations of an exclusivity period with a B2B partner.
GAN’s B2C revenue slipped from $22.8m to $18.9m as the operator pointed towards tough comparisons against Q4 2022’s World Cup boost.
In turn, adjusted EBITDA during Q4 fell to a $3.9m loss from a previous $400,000 loss, with the firm noting the downturn was primarily related to falling revenue.
GAN added that the adjusted EBITDA losses had been somewhat stymied by cost savings, including a reduction in headcount.
Operating expenses dropped from $172.4m to $29.5m on the back of a $137.1m non-impairment charge during Q4 2022.
GAN noted that sales, marketing, product, tech and general expenditure all decreased compared to the same time last year.
Net losses fell to $9.4m from $147.7m, with the firm once again pointing to the non-impairment charge.
The downturn in Q4 performance subsequently led to GAN’s full-year 2023 revenue dipping 9% to $129.4m, while adjusted EBITDA amounted to an $8.4m loss against 2022’s earnings of $6m.
GAN did not provide any commentary from senior management when releasing its results, nor did the business host a conference call following the publication.
On the upcoming Sega Sammy transaction, GAN said it expects the merger to complete in late 2024 or early 2025 based on certain standard and regulatory conditions.