Malta-registered sports betting operator Coolbet has ‘outperformed expectations’ according to GAN Plc’s Q1 2021 financial update, delivering $14.3 million in revenue.
GAN closed its acquisition of Coolbet in January 2021, integrating the firm’s sports betting technology and operations, with the long-term goal of leveraging the Estonian operator’s capabilities and experience to enhance its position in the US market.
Under the terms of a ‘definitive agreement’ signed with Coolbet’s operating company Vincent Group Malta in November 2020, GAN paid a total consideration of €149 million for the Baltic markets sportsbook.
NASDAQ-listed GAN branded Coolbet as one of the fastest growing European operators to its investors upon securing the takeover.
The acquisition followed a series of successful trading years for Coolbet, recording 12 month revenue of €26 million and a 46% revenue CAGR from 2018 to 2020.
“We started the new year on a strong note with 263% top-line growth year-over-year, fuelled by both organic growth as well as the Coolbet acquisition,” said Dermot Smurfit, CEO of GAN.
“We completed a record five RMiG partner launches during the first quarter, highlighted by our groundbreaking launch and strong results in Michigan, plus our exciting new partnerships with Wynn and Churchill Downs.
“We carried that momentum into the second quarter, with now 10 launches year-to-date, exceeding all of 2020.”
Coolbet’s $14.3 million contribution to GAN’s B2C segment drove a 263% increase in the company’s Q1 2021 revenue to $27.8 million, in comparison to £7.7 million generated 12 months prior, complementing addition growth in the firm’s B2B segment, which reached revenues of $5.8 million.
Additionally, the acquisition of the Estonian group boosted segment gross profit by 220% due to Coolbet’s $8.3 million contribution, with profit totalling $19.1 million as opposed to $6 million in Q1 2020.
However, a net loss of $4.5 million versus a net income of $0.7 million was also attributed to the purchase, relating to acquired intangibles of $2.9 million.