StockMarketWire.com - Gan reported wider losses profits as higher investment spend raised costs offsetting an uptick in revenue, though the company touted material growth in gaming in the current year.

For 2018, losses before tax widened to £6.7m from £4.2m and revenue gained 16% to £10.6m from a year earlier. That was in-line above expectations for revenue between £10.5 and £11.3m for the year.

The group reported total operating costs for the year ended 31 December 2018 of £16.9m, up 28% from year, driven by higher distribution and administrative expenses.

Clean earnings (EBITDA) – the group's preferred measure of profits – swung to a loss of £1.5m from a gain of gain of £0.5m in 2017.

The uptick in costs comes as the company made inroads in the US market following the The repeal of a 25 year-old Federal ban on sports betting in America in May 2018.

This cleared the path for GAN to launch Internet sports betting just four months later following 'a complex re-allocation of our internal engineering resources in order to integrate the first sports betting application into our enterprise software platform,' the company said.

'GAN continued to prepare for Pennsylvania Internet gambling, now expected to commence in Summer 2019 following a multi-month regulatory delay,' said Dermot Smurfit, CEO of GAN. 'GAN's client in Pennsylvania, Parx Casino, is the largest single casino property by market share in Pennsylvania. GAN will also be launching PaddyPower Betfair's 'FanDuel' Internet sports betting and casino gaming in 2019.'

Smurfit also touted brighter prospect lie ahead for the current year.

'For 2019, we forecast material growth of Internet sports betting, Simulated Gaming and real money Internet gaming undertaken for US clients in New Jersey, Pennsylvania and Europe's diverse regulated markets principally via http://casino.winstar.com. Our US Patent licensing program which commenced in 2017 will also represent a new source of patent licensing revenues for GAN in 2019 and beyond.'



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