GAN has reported total revenue of $29.4m (£22.3m) for Q1 2025, marking a 4% year-on-year (YoY) decline, as a major slide in B2B revenue hit the company.
The operator has attributed the fall in its topline figure to an underperformance within its B2B segment, which saw its revenue fall just over 140% YoY, decreasing to $5.1m from Q1 2024’s total of $12.3m.
The slump was, according to bosses, due to the expiration of a multistate B2B commercial contract.
The contract’s expiration sparked a dramatic fall in B2B gross operator revenue, which fell from $632m in the opening quarter of last year to $144.6m in Q1 2025.
In contrast, revenue generated by GAN’s B2C division rose 32% YoY, climbing from $18.3m in 2024 to $24.3m this time around, thanks in large part to achieving growth in both the European and Latam regions.
The segment also reported an improvement in its number of active customers, which totalled 235,000 for the three months ending 31 March, up from 222,000 in the same period last year.
Breaking GAN’s group-wide revenue down by region, Europe contributed the lion’s share with $15.5m, followed by its Latam segment in second place with $8.4m.
Its US arm, however, posted $4.7m in revenue, a notable slump from the $9.1m generated in Q1 2024, while remaining international operations amassed $751,000, failing to match last year’s total of $3m.
GAN also reported an adjusted EBITDA loss of $1.5m, a worse performance when pitted against the $569,000 loss recorded in the same period last year.
The operator posted a net loss of $6.8m, falling further from last year’s $4.2m loss.
Bosses said the decline came amid the slump in B2B revenue, which offset a higher B2C segment contribution and lower operating expenses of $23.7m ($24.6m in Q1 2024), thanks to a headcount reduction and less compensation costs.
The company also issued an update on the $107.6m Sega Sammy transaction, which is expected to close in the second quarter of the year.
GAN said: “The closing of the merger remains subject to remaining regulatory requirements and other customary closing conditions, and [GAN] anticipates the closing of the merger will occur in the second quarter of 2025.”
Seamus McGill, GAN CEO, added: “I’m pleased with the continued progress during the first quarter as we continue to execute on our business plan while refining our cost structure.
“Our B2C results were particularly strong and underscore the strength of our market position in European and Latin American markets.
“We are nearing the conclusion of the regulatory requirements to close our merger with Sega Sammy, which we expect to be successfully completed in the second quarter of 2025.”
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Company’s improved performance in Europe and Latam B2C fail to inspire topline growth, while Sega Sammy merger remains on course for Q2 close
The post GAN Q1 revenue falls 4% YoY as B2B struggles offset B2C gains first appeared on EGR Intel.