Smurfit-backed gambling and gaming technology firm Gan, which is listed on Nasdaq, has revealed it has cut 55 jobs since the start of the year in response to “market dynamics”.
he company, which counts Dermot Smurfit Jnr as its chief executive, shared it had made the job cuts during a call with analysts as part of its second-quarter results.
It revealed revenue in the quarter had hit nearly $35m, down from almost $37.5m over its previous quarter.
Karen Flores, Gan’s chief financial officer, told analysts it was implementing “operational changes” in response to the current market.
“First, on the expense side, our biggest expense item is labour,” she said. “We have implemented some headcount reductionism, and our ending headcount in June was 675 as compared to 730 at the start of this year.”
She added that it was now “slowing” its hiring ramp.
Smurfit shared Gan had lowered its revenue expectation to between $142.5m to $152.5m and Adjusted Ebitda expectation to between $10m to $15m.
Flores said its prior guidance on adjusted Ebitda was between $15m to $20m.
“While our results this quarter were below the expectations we set for ourselves, the business remains very healthy and on a strong trajectory, which was evident in our B2B (business to business) results and the strong underlying key performance indicators in B2C (business to consumer) despite operational headwinds.
“There is a lot to look forward to in the back half of the year, including the launch of Gan Sports and the Fifa World Cup.”
Gan also recorded a net loss of $38.3m. It included a $28.9m non-cash goodwill impairment charge recorded over the quarter.
With valuations across the broader gaming technology sector having declined since it completed the acquisition of Coolbet in January 2021, Flores said the write-down of its goodwill was related to the decline in its equity market cap. At the time of writing, Gan shares were valued at $3.17, with a high recorded in February 2021 of around $30.
