Gan Share Discussion Threads

[rivaldo] 29/3/2018 09:10

Cheers Noujay, will take a look at the presentation.

I don't have access to Davy's new note in full, but here's their summary for today:



"FY results in line as group turns EBITDA positive; US regulatory changes key to future growth
March 29 2018

DAVY VIEW

GAN’s full year results contain few surprises with numbers in line at the revenue, EBITDA and net income level. Revenues grew 17% in 2017, while the group was EBITDA positive. Key from here are regulatory developments in the US; GAN expects to go live with real-money gaming in Pennsylvania in H2 this year and has also put in place a strategic relationship with SBTECH that may facilitate the group offering sports-betting technology in the event that PASPA is repealed. In the meantime, GAN says that it is monitoring its financing options with an eye to potential further investment in the US."

[noujay] 29/3/2018 07:51

Well noted Riv you are right it's a significant acceleration in H2. Starting to get some decent fundamentals in what could be a high growth market.That such a large proportion of revenues are recurring as well is very positive.There is a very good presentation on the website as well which will form the basis of the 11am call.

[rivaldo] 29/3/2018 07:44

Worth noting that GAN made almost £0.5m clean EBITDA in H2 alone (H1 was just above break-even).

On that basis this year could see an annualised £1m EBITDA, and likely considerably more with simulated gaming improving all the time and Pennsylvania benefiting H2'18.

Then there's the PASPA repeal, as well as other US states potentially allowing online gaming this year or going forward.

Interesting times. Almost £3m in the bank hopefully allows them flexibility for financing the potential growth from non-dilutive sources (banks etc).

[noujay] 29/3/2018 07:31

This is shaping up very nicely and if PASPA repeals will not only fly but likely be a take out target IMO

[molatovkid] 29/3/2018 07:27

All sounds very positive....I get the sense GAN are on the cusp of things really moving.

Someone like GVC Holdings will try and take these out I reckon...

[rivaldo] 28/3/2018 11:35

Pennsylvania are marching ahead, setting a June 4th licensing date for online casino system providers.

GAN get mentioned as one of four likely gambling system providers:



"The PGCB announcement adds another piece to the puzzle, and brings the state closer to a fully operational online gambling industry. Here are some pertinent upcoming dates:
•April 2: Gaming manufacturers can apply for approval
•April 4: Additional temporary regulations will be issued, possibly including a decision on skins
•April 16: Brick-and-mortar casinos may apply for an iGaming certificate
•June 4: Software platform providers may apply for licensing
•July 16: Operators may buy slots, table games or poker permits separately
•November 16: Our estimated launch date for PA online casinos"

[mr doughnut1] 28/3/2018 07:05

Good news, Key performance indicators Q4 saw the sixth successive quarter of growth in active players to 3,066,920, an increase of 2.3%.
More importantly - there was a 5.1%, quarter on quarter, increase in average revenue per daily active user to $6.68. This reflected strong growth in real money gaming.
I don't know if there is any seasonal element in GAN's trading, ie people have more time on there hands over Christmas, but this seems to be pointing in the right direction.
I any one has time - conference call tomorrow 4pm UK time you can log in to a presentation of tomorrows results. GLA

[noujay] 20/3/2018 09:46

Looking at all these small trades, does anybody ever actually buy any?! Just a few days until the update now

[noujay] 05/3/2018 12:20

Many thanks rivaldo

[rivaldo] 05/3/2018 10:47

FYI Allenby Capital have today updated on GAN as follows:

"GAN plc (GAN.L, 28p/£18.7m)
Meeting with management: Simulated growth (01.03.18)

 Meeting with management of the B2B supplier of Internet gaming enterprise SaaS to the US land-based casino industry, on the back of the recent trading statement (23.01) and Q4 KPIs (26.01).
 GAN has performed in line with management expectations during H2 in both its real money Regulated Gaming and Simulated Gaming activities due to the launch of several new clients, including winstar.com, a European casino run by the Chickasaw Nation, a major Native American US casino operator. The company reported its
maiden positive EBITDA (£24k) on net revenue of £4.1m in H1.
 Regulated Gaming - Continued Net Revenue growth in Italy in H2 including a seasonally strong Q4. In New Jersey, GAN signed its second client - AC Ocean Walk LLC, the owner operator of Ocean Resort Casino (formerly TEN/Revel Casino) - for Internet casino and sports betting integrated with its on-property rewards
programme. Parx Casino, an existing Simulated Gaming customer, is expected to offer Regulated Gaming following the regulation of Internet gaming in Pennsylvania last October, the fourth state to regulate.
 Simulated Gaming - trading benefited from several new US casino operators going live in 2017 including Ocean Resort Casino, WinStar World Casino, MGM's The Borgata, and Oneida Nation's Turning Stone and Station Casinos. GAN now operates Simulated Gaming for 12 US casinos and one Australian consortium.
 FY results are scheduled for March 29th.

Allenby Capital comment: Internet gambling has been much slower to come through than expected with only four states regulating since 2013. This was central to the initial GAN investment case but the company has successfully built up its Simulated Gaming business.

This can be a prelude for Regulated Gaming - as in the case of Parx Casino - but Simulated Gaming represents an attractive revenue stream in its own right. It is an additional high margin revenue stream for casinos as there is no cash payout and consumers have demonstrated a willingness to use real cash to purchase virtual gambling chips. It can also be used to build up customer loyalty for physical gambling. Spending cash to purchase virtual chips that cannot be cashed out might seem illogical but we would draw the parallel to the various online games where consumers purchase virtual goods/skins etc. Potential investors may be put off by the current low share liquidity but GAN is trading at a substantial discount to other US-oriented SaaS players."

[noujay] 28/2/2018 10:54

You could die of boredom holding this thing and by the odd trade some presumably already are, but I am expecting solid results at the end of next month and hopefully the update will give some more info on other areas too

[alan@bj] 19/2/2018 12:55

Perhaps there'll be no news now until the December 2017 year end results are announced on March 29th.

[busterdog2] 19/2/2018 10:37

So perhaps things aren't happening quite as fast as anticipated?

[rivaldo] 19/2/2018 10:12

Interesting summary of the current state of play in Pennsylvania following the recent news - with mention of GAN's partnership with Parx Casinos and with "Pennsylvania’s legal online gambling sites expected to launch sometime in 2018’s second half":

[jon123] 08/2/2018 08:39

i'm guessing that 100k was a buy a sell of that size would have knocked the price

[phowdo] 08/2/2018 08:29

Some larger trades gone through now, so probably dropped to clear a line of stock

[mr doughnut1] 07/2/2018 18:04

I bought in this morning following yesterdays slightly irrational price drop.
Have been watching since last Sept and missed the rise on the back of the Pennsylvania decision.
I agree with both bookbroker and Noujay, post 590/591. But I think this company could just be in the place at the right time.

[noujay] 07/2/2018 17:11

Results in a few weeks should give better clarity and we are slowly moving towards decision time for US sports betting. It would be nice if they could announce some new customers though in the meantime

[bookbroker] 07/2/2018 16:31

Think it needs to close a gap from late October, seems odd the share price moves in the few days, small company beneath the radar, big moves for no specific reason, trading statement adequate despite slowing growth in active player days, KPI’s always vague, too much can be read unto them!

[debno] 07/2/2018 16:25

All buys today and the price does not move, strange, very strange....

[noujay] 06/2/2018 16:30

Very dramatic on such tiny volumes but then it can move quickly the other way too. Took a few more as I want expecting an opportunity to buy again at these levels, albeit it wasn't necessarily one I'd wanted!

[bookbroker] 06/2/2018 16:16

Ridiculous, thin market and MMs being pathetic!

[jon123] 06/2/2018 15:24

if someone bought 5 k's worth i can't see it going back up 14 %

[phowdo] 06/2/2018 15:17

Blimey, not even 5 grands worth of sells and its off 14%.

[rivaldo] 02/2/2018 08:57

More detail on the new internet gaming contract in the USA:



"GameAccount Network to power Ocean Resort Casino online offerings
By World Casino Directory
Posted on January 30, 2018

After last week inking a strategic partnership for the United States with sportsbetting solutions innovator SBTech, British online gaming software supplier GameAccount Network has now revealed the signing of a multi-year deal with the new owner of the coming Ocean Resort Casino.

Previously known as TEN Atlantic City until it was sold for $200 million earlier this month to an entity known as AC Ocean Walk LLC and renamed, the 1,399-room Ocean Resort Casino expects to re-open for business in the summer complete with a casino featuring some 2,000 slots as well as approximately 100 gaming tables.

To complement this casino, the Atlantic City property additionally intends to offer real-money online gaming and sportsbetting utilizing the New Jersey-licensed platform from GameAccount Network while moreover integrating these propositions with its on-site rewards program via the London-based firm’s Patent3 innovation.

“This new Internet gaming destination is currently expected to launch in [the first half of] 2018 and will contribute materially to GameAccount Network’s revenues and earnings in [the second half of] 2018,” read a Tuesday statement from GameAccount Network. “Ocean Resort Casino in Atlantic City, New Jersey, is the substantial casino property formerly known as TEN Atlantic City/Revel Casino Hotel Atlantic City.”