Smurfit-backed gaming and gaming technology company Gan, listed on the Nasdaq, has announced it has cut 55 jobs since the beginning of the year in response to “market dynamics”.
The company, which counts Dermot Smurfit Jnr as chief executive, said it made the job cuts during talks with analysts as part of its second-quarter results.
It showed that revenue for the quarter had reached nearly $35 million, compared to nearly $37.5 million in the previous quarter.
Karen Flores, Gan’s chief financial officer, told analysts that it is introducing “operational changes” in response to the current market.
“First, on the spending side, our biggest expense is labor,” she said. “We have implemented some headcount reductions and our headcount was 675 in June compared to 730 earlier this year.”
She added that it’s now “slowing down” its recruitment ramp.
Smurfit said Gan has lowered its revenue guidance to $142.5-152.5 million and adjusted Ebitda guidance to $10-15 million.
Flores said his previous guidance for adjusted Ebitda was between $15 million and $20 million.
“Although our results this quarter fell short of the expectations we set ourselves, the business remains very healthy and on a strong path, as reflected in our B2B (business to business) results and strong underlying performance metrics in B2C -Area (business to consumer) despite operational headwinds.
“There is a lot to look forward to in the second half of the year including the launch of Gan Sports and the Fifa World Cup.”
Gan also posted a net loss of $38.3 million. This included a non-cash goodwill impairment of $28.9 million, which was recorded during the quarter.
As valuations across the gaming technology sector have fallen since the completion of the Coolbet acquisition in January 2021, Flores said the writedown of its goodwill is related to the decline in its stock market cap. At the time of writing, Gan shares are valued at $3.17, having peaked around $30 in February 2021.
https://www.independent.ie/business/irish/smurfits-gan-cuts-over-50-jobs-41939545.html Smurfit’s Gan cuts over 50 jobs