Financial Results in the News — Weekly Round-up for June 02, 2017

By Brian Cullingworth, Last updated Jun 2, 2017

Mixed Bag Of FY2106 Results From GAN

Strong gains in net revenue and losses reduced

B2B software supplier, GAN (Formerly GameAccount Network), has reported gains in net revenue of 30 percent but losses persist the company showed in its 2016 Fiscal report for the twelve months ending December 31, 2016.

Key performance metrics for the period include:

–    Net Revenue of GBP 7.8 million (2015: GBP 6.0 million) an increase of 30 percent on 2015.

–    Clean EBITDA1 loss of GBP 0.9 million (2015: GBP 3.0 million) a reduction of 70 percent on 2015.

–    Loss before tax of GBP 5.2 million (2015: GBP 5.6 million) and loss per share of GBP 0.06 (2015: GBP 0.09)

–    Loss after tax of GBP 3.8 million (2015: £5.0m)

–    Cash and cash equivalents at the end of the year of GBP 3.2 million (2015: GBP 3.8 million)

–    Net Assets at the end of the year of GBP 10.9 million (2015: GBP 10.2 million)

–    Raised Gross Proceeds of GBP 4.4 million in 2016 from share placings and an additional GBP 2 million in April 2017 through an unsecured 9 percent convertible loan note positioning the Group for further growth

Dermot Smurfit, CEO of GAN commenting on the results, said:

“2016 has continued the period of investment for GAN, and, performance to date in 2017 is in line with our expectations.

“GAN has continued to position its business to capture growth in emerging online gaming markets in the US. 2016 saw significant progress with Simulated GamingTM, together with a number of significant commercial and strategic developments.

“Our investment in the business continues and we have grown our team and expanded our technical expertise, US infrastructure and gaming content portfolio throughout 2016.

“We remain confident in our prospects for 2017 and beyond.”

NYX Gaming Group Flying High

Stellar results boosted by Openbet and Betdigital acquisitions

NYX Gaming Group, in its first quarter report for the period ending March 31, 2017, delivered with revenues soaring almost 200 percent which it attributes to a number of factors including the results of operations from OpenBet and Betdigital, increased gaming revenues from existing customers, and new customer launches.

First Quarter 2017 Highlights include:

Revenue of CAD58.9 million, or growth of 199.8 percent year-over-year;

Organic revenue growth of 17.3 percent year-over-year, excluding the impact of OpenBet and Betdigital acquisitions during May 2016;

Royalty and license revenue of CAD30.9 million, or growth of 77.9 percent year-over-year;

Gross profit of CAD52.1 million, or 88.4 percent of revenue compared to 82.7 percent of revenue in Q1 2016;

Net income of CAD2.5 million (Q1/2016: CAD-9.1 million).

Adjusted EBITDA of CAD16.8 million, an increase of 250.1 percent over the prior year period;

“Our customer development pipeline remains strong, and we are focused on profitable growth through our product led strategy with targeted R&D investment in sportsbook, gaming, and content technologies,” Matt Davey, chief executive officer of NYX Gaming Group, said.

The company’s outlook for the next quarter is bullish as it holds commitments with a further 28 customers yet to be launched.

Mybet Delivers Disappointing First Quarter Performance

Negative declines in revenue continue

European sports betting operator mybet has delivered a worrying first quarter 2017 report in which it details a continuing decline in corporate revenues and earnings.

Key performance indicators include:

–    A 29 percent decline in revenues to Euro 8.9 million (Q1/2016: Euro 12.5 million) attributed to the temporary closure of its online casino product due to regulatory concerns.

–    EBITDA of minus Euro 2.2 million (Q1/2016: minus Euro 800,000), a result the company said had been significantly impacted by the high number of customer-friendly sports betting results accumulated during February and March.

–    Correspondingly EBIT was minus Euro 2.6 million (Q1/2016: minus Euro 1 million).

Markus Peuler, chief executive officer of mybet, said:

“In the first quarter the existing trend in the development of the business basically continued, since we had put our new platform into operation by the end of the quarter.

“However the sports results and the high number of won bets by customers connected with them formed an additional burden which we had never experienced this way during the last years.

“But in total the quarter clearly shows why we did not forecast a large growth in revenue for the financial year 2017 despite the new platform. We firstly have to break the downward trend.”

The full integration of mybet’s new platform, which has been developed in-house over the past two years, together with an out of court settlement with Westdeutsche Lottery GmbH & Co. for Euro 11.8 million, has prompted mybet to adjust operational plans and raise its earnings and liquidity forecast for the full year 2017.

The company forecasts revenue of between Euro 44.5 and Euro 47 million, EBIT of between Euro 4.5 and 5.5 million and a cash position at the end of the year of Euro 1 to 2 million.

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