Dermot Smurfit, the long-standing head of GAN, the online gaming enterprise, has resigned from his position. He has been at the helm for over two decades, since the beginning of the new millennium. The company is exploring a consulting position for Smurfit, who remains a significant shareholder.
Seamus McGill, who has served as the chairman of GAN since 2014, is now the temporary chief executive. He possesses extensive experience in the gambling sector, having worked at firms such as Joingo, Aristocrat Technologies, Cyberview Technology, and WMS Gaming.
GAN is still examining various approaches to enhance the company’s performance and generate greater returns for its investors. They are considering a range of possibilities, and the situation remains uncertain.
GAN is contemplating the sale of its entire operation or a portion of it.
The enterprise has been engaged in discussions with numerous prospective purchasers during the second quarter, although no accords have been established. There is no predetermined schedule for the transaction to be finalized.
GAN affirmed that no definitive agreements are currently in place. The company also emphasized that it cannot provide assurance that a transaction will materialize, nor can it specify a timeframe for any potential deal to be concluded.
GAN’s income experienced a decrease in the second quarter, but its losses narrowed.
GAN’s revenue diminished by 3.4% to $33.8 million in the second quarter.
The reduction in revenue was primarily attributed to a decline in B2B business revenue, which fell by 30.3% to $9.9 million. B2B revenue encompassed $7.2 million in platform and content licensing fees and $2.7 million in development services and other sources.
Operating expenses amounted to $42.3 million, representing a 41.6% decrease from the corresponding period in the previous year. This reduction was primarily due to the inclusion of a $28.9 million impairment charge in the previous year, which was not present in the second quarter of the current year.
Consequently, the net loss was $18.4 million, compared to $38.3 million in the previous year. However, adjusted EBITDA decreased to negative $2 million from positive $1.3 million due to the decline in the B2B business.
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