Gan stock price dip as they lose partnership with FanDuel

  • GAN released its Q2 revenue results and made an announcement that it would be losing FanDuel as a client by the end of the month.
  • The company saw a growth in revenue in the second quarter of the year but also incurred losses from a quarter affected heavily by the global pandemic.
  • Despite the losses the company has new business ventures that top officials believe will bring success and profit.

LONDON – GAN, the online gaming technology provider, reports it is still in a good position despite drops in stocks after announcing losing its client FanDuel on Thursday.

The company released its second-quarter revenue results along with the announcement of FanDuel sportsbook’s departure. The revenue in the last three months of Q2 ending June 30 has almost doubled from the same period in 2019.

The adjusted earnings made before taxes, interest, depreciation, and amortization (EBITDA), totaled $1.9 million which is a huge jump from the negative $200,000 reported last year.

GAN did take a net loss of $8.8 million on revenue of $8.3 million in the quarter, which is partly from the company’s initial United States public offering expenses made in May.

In announcing that the company “does not anticipate sports gaming revenues from FanDuel after August 31, 2020”, the release also highlighted how the COVID-19 pandemic made certainty and security of legal sports betting drop during this year.

Though GAN is dealing with the effects of the coronavirus pandemic and losing a top sports gaming platform, the officials still believe the company will see much success as the last half of the year begins.

“We were pleased to achieve revenues of $8.3 million during the second quarter of 2020, a period during which nearly all of our land-based casino customers were forced to close their physical operations and when most major sporting events were cancelled as a result of the global pandemic,” said Dermot Smurfit, CEO of GAN “Our business has proven resilient to these outside forces in recent weeks, and we believe GAN can greatly contribute to both our customers’ success and the accelerated secular shift to iGaming as casino operators continue to be impacted by the pandemic.”

GAN has plans to have Parx Casino launch a GAN-developed iOS app in New Jersey and to bring sports betting to three operators in Michigan by October.

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