GAN(US:GAN)2021-08-15 16:00Financial Performance - Revenues for the three months ended June 30, 2021, were $34,628,000, representing a 24.4% increase from $27,842,000 in the previous quarter[153]. - The net loss for the three months ended June 30, 2021, was $(2,730,000), a 38.8% improvement from $(4,464,000) in the previous quarter[153]. - Total revenues for the three months ended June 30, 2021, were $34.6 million, an increase of $26.3 million or 316.1% compared to $8.3 million for the same period in 2020[163]. - Total revenues for the six months ended June 30, 2021, increased to $62.47 million, a 290.6% increase from $15.99 million in the same period of 2020[176]. - The net loss for the three months ended June 30, 2021, was $2.7 million, a decrease of $6.9 million or 71.8% compared to a net loss of $9.7 million for the same period in 2020[163]. Operating Costs and Expenses - Operating costs increased by 14.9% to $36,366,000 for the three months ended June 30, 2021, compared to $31,644,000 in the previous quarter[153]. - Operating expenses rose by $7.1 million, largely due to the inclusion of B2C segment expenses following the Coolbet acquisition[180]. - General and administrative expenses increased by $12.2 million, with $6.4 million attributed to the B2C segment and additional costs related to compliance and integration projects[182]. - Operating costs and expenses for the three months ended June 30, 2021, totaled $36.4 million, an increase of $18.9 million or 108.5% compared to $17.4 million for the same period in 2020[163]. Revenue Segmentation - The B2C segment generated $23.98 million in revenue for the three months ended June 30, 2021, marking a 67.6% increase from $14.31 million in the previous quarter[189]. - The B2B segment reported revenues of $10.65 million for the three months ended June 30, 2021, a decrease of 21.3% from $13.53 million in the prior quarter[189]. - Revenue from the United States increased by $6.8 million to $20.08 million, representing a 51.0% growth, driven by patent licensing and expanded sports betting legalization[178]. - European revenues surged by $22.58 million to $25.26 million, a significant increase attributed to the inclusion of B2C revenues in Northern Europe[178]. Acquisition and Strategic Initiatives - The acquisition of Coolbet on January 1, 2021, is expected to enhance profitability through increased revenues and margin expansion from integrating its technology[136][137]. - The company expects to roll out new product offerings and expand its B2C business in existing and new jurisdictions, leveraging Coolbet's platform[138]. - The company holds a strategic U.S. patent for linking on-property reward cards to Internet gambling accounts, with plans to license it to additional operators[139]. - The B2B segment focuses on providing technology solutions for casino operators to extend their online presence, including simulated gambling solutions[140]. Cash Flow and Liquidity - As of June 30, 2021, the company had cash of $52.1 million and accounts receivable of $12.0 million, indicating strong liquidity[224]. - Net cash from operating activities increased by $2.6 million, a 151.5% increase compared to the prior year[228]. - Net cash used in investing activities increased by $101.3 million, primarily due to a $92.4 million cash payment for the acquisition of Coolbet[229]. - The net increase in cash for the six months ended June 30, 2021, was a decrease of $100.6 million, representing a 287.0% decline compared to the previous year[227]. Taxation - The effective tax rate for the three months ended June 30, 2021, was (57.1)%, compared to (1.8)% for the same period in 2020[173]. - The company recorded an income tax expense of $1.0 million for the three months ended June 30, 2021, compared to $0.2 million for the same period in 2020[173]. - The effective tax rate for the six months ended June 30, 2021, was 29.8%, compared to 3.6% in the same period of 2020[185]. Future Outlook - The company anticipates additional states will allow real money iGaming (RMiG) operations in 2021, expanding its total addressable market in the U.S.[135]. - The company expects capital expenditures to increase as it expands gaming content development and integrates Coolbet's technology[222]. - There are no arrangements in place for future financing, and the company cannot assure the availability or terms of any required financing[231].