Smurfit Exits GAN’s Leadership Role
Dermot Smurfit has stepped down from his position as chief executive of GAN, the online gaming solutions provider. Seamus McGill has been named as the temporary replacement.
Smurfit has been at the helm of GAN for over two decades, taking the reins in September 2002. The company’s board accepted his resignation this week, and he officially departed on September 26.
GAN is currently exploring a consulting agreement with Smurfit, who remains a substantial stakeholder in the company.
The company has swiftly appointed McGill as the interim CEO, effective immediately.
McGill has served as GAN’s non-executive chairman since January 2014, previously holding the position of president at Joingo. He has also held leadership roles at Aristocrat Technologies, Cyberview Technology, and WMS Gaming.
Strategic Review Continues
GAN stated that McGill will assume leadership responsibilities for all executive functions, including overseeing the ongoing strategic review. The company initiated a comprehensive evaluation in the first quarter, exploring various strategic options to enhance shareholder value. A special committee composed of non-executive directors is assessing these options for the business.
Providing an update on the strategic review, GAN confirmed that it is ongoing and all options remain under consideration.
GAN is contemplating the sale of its entire enterprise or a portion thereof.
GAN stated that during the second quarter, the firm engaged in discussions with numerous entities but did not arrive at any agreements. The company has not established a deadline for the conclusion of this process.
GAN declared: “At this juncture, there are no definitive agreements for any transaction.” “There is no guarantee that a transaction will materialize, and there is no projected timeline.”
GAN’s revenue for the second quarter experienced a decrease, but its losses narrowed.
For the entirety of the second quarter, GAN’s revenue decreased by 3.4% to $33.8 million.
The reduction in revenue was attributed to a decline in B2B revenue, which fell by 30.3% to $9.9 million. B2B revenue encompassed $7.2 million in platform and content licensing fees and $2.7 million in development services and other sources.
Operating expenses reached $42.3 million, representing a 41.6% decrease from the previous year. This was primarily due to the fact that the figures from the previous year included a $28.9 million impairment charge, which did not occur in the second quarter of this year.
Consequently, the net loss amounted to $18.4 million, compared to $38.3 million in the previous year. However, owing to the decline in the B2B business, adjusted EBITDA decreased from a positive $1.3 million to a negative $2 million.
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