10.5 C
Monday, May 20, 2024

Dermot Smurfit Jr’s gaming software business recently posted a huge net loss of nearly $200million


- Advertisement -

GAN, helmed by Dermot Smurfit Jr, suffered a staggering $200m (€182m) loss in 2022, and they’ve warned that further losses could reduce their liquidity, forcing them to seek additional capital. This was accompanied by a non-cash impairment of $166m.

The company acquired Coolbet, a firm based in Estonia, for €149m in early 2021. They had previously raised $105m for that purchase the preceding December.

In 2020, GAN was listed on the Nasdaq, raising $62m.

Their shares have since plummeted, now trading at $1.48 compared to the $5.50 of a year ago. Just after their listing, the stock had gone as high as $28.

Dermot Desmond, Dermot Snr (Dermot Jr’s father), Michael Smurfit (Dermot Jr’s uncle), and Andrew Black (Betfair founder) were all early investors in GAN.

GAN provides internet gambling software to land-based casinos in the US, and their 2022 revenue was $141.5m – up from $124.1m the previous year.

A downward revision to their 2023 budget and long-term plan, caused by a reduction in their B2B cash flows, a decision to not pursue original content, and a change in their B2C growth strategy, led to a 2023 impairment of $166m. Without that, they still lost $31.5m.

At the end of 2022, GAN had an accumulated deficit of $151m, and they warned that further losses could reduce investor confidence and drive down their share price. They also noted that they can no longer indefinitely reinvest foreign earnings.

- Advertisement -

Related Articles

Aiden is a skilled writer who has found his calling as a journalist 2 years ago. With a passion for storytelling and a keen eye for detail, he has quickly made a name for himself in the industry. Aiden's articles are well-written and informative, and he takes great pride in his work. He has a knack for finding the most interesting angles on any story, and his writing is always engaging and thought-provoking. In his free time, Aiden enjoys reading, hiking, and spending time with his family.

Share post:



More like this

Ronan Group Challenges Dublin Council on Citigroup Redevelopment

The clash between Ronan Group Real Estate and Dublin...

Save Money and Boost Home Energy Efficiency

Enhancing home energy efficiency is not just about reducing...

EU Launches Probe Into Facebook’s Child Safety

The recent probe by the EU into Facebook's child...

Guinness Brews Green Future With Massive Investment

Guinness, a leading name in the brewing industry, is...