LONDON (Alliance News) - GAN PLC on Tuesday said it performed in line with expectations in the second half of 2016 and has entered 2017 with a positive outlook.
The gaming software and content supplier, formerly known as GameAccount Network, said cost management and favourable movements in foreign exchange rates helped it to generate positive clean earnings before interest, tax, depreciation and amortisation in the fourth quarter of 2016.
In its real-money Regulated Gaming business, GAN continued to enjoy favourable market conditions in New Jersey where it performed strongly in 2016, the company said, while net revenue growth in Italy continued in the second half as it benefited from a seasonally strong fourth quarter.
Meanwhile, GAN's US-facing Simulated Gaming business continued to benefit from the launch of major new casino operator clients in the second half, GAN said. GAN anticipates operating Simulated Gaming for 12 major US casinos by the end of the first half of 2017.
On a more negative note, GAN said it will no longer be servicing Borgata Hotel Casino & Spa's real-money Regulated Gaming business, after Borgata failed to meet certain conditions as a result of "third-party circumstances". GAN said it remains in commercial discussions with Borgata regarding other opportunities to participate in its Regulated Gaming business.
GAN will, however, continue working on the launch of Borgata's Simulated Gaming online business, which is expected to occur in the first quarter of 2017.
GAN added that further cost management actions and the expansion of engineering resources into the lower cost Bulgarian market will deliver positive financial benefits in 2017.
The company will release its full-year results on April 26.
Shares in GAN were trading up 1.4% at 36.00 pence on Tuesday morning.
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