Galaxy Gaming reports a threefold increase in revenue
Galaxy Gaming, a land-based supplier, has tripled its revenue to $5.3 million in Q3 of 2021, increasing 194.4 percent from the same period the previous year.
Licensing fees accounted for the entirety of the quarter’s earnings. Africa, Europe, and the Middle East contributed $2.8 million (up 157.7% from 2020), while North America and the Caribbean contributed $2.3 million (up 250.0%).
Galaxy’s costs went up to $4.1 million from last year’s $2.7 million. With $2.7 million, in general, and administrative expenses, depreciation and amortisation was $722,475, share-based compensation was $449,565, and research and development expenses were $156,768.
Todd Cravens, president and CEO at Galaxy, stated:
“The Company revealed the effectiveness we have been striving for since early 2020 in Q3 of 2021. Even though a significant number of our UK land-based clients stayed closed in the period, earnings, Adjusted EBITDA, and Adjusted EBITDA Margin all hit new highs. We anticipate our land-based company to rebound from the Covid-19 shutdown, while our internet company in Europe and North America continues to develop.”
Operating profit was $1.2 million, opposed to a loss of $898,303 in 2020. Net income for the quarter was $874,236 after $195,482 in share redemption considerations, $129,422 in interest payments, $33,781 in foreign currency losses, and $21,186 in income taxes, up from $1.3 million in losses the previous year. For the quarter, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $2.5 million, up 6844.4 percent from 2020.
Harry Hagerty, Galaxy’s CFO, mentioned:
“Our brick-and-mortar company is continuing to revive, and we are benefiting from success in the internet sector. As a consequence, our cash flow has improved. We expect these patterns to continue through the rest of 2021 and into 2022.”
Galaxy also stated that it has completed its deal with Triangulum Partners, accounting software provider, and its former chairman and CEO Robert Saucier. This was accomplished by engaging into a $60 million term loan credit agreement with Fortress Credit Corp. Triangulum filed a lawsuit against Galaxy after the company tried to force Triangulum — a big Galaxy stakeholder – to sell its stock due to a regulatory issue.
Cravens talked about the deal:
“The Fortress acquisition, as well as the fulfilment of the Settlement Agreement that resulted from it, is a significant milestone for Galaxy. The Triangulum litigation’s cost and uncertainties are now behind us, enabling us to concentrate all of our attention on clients, services, and corporate development. We value Fortress’s faith in us, and we look forward to a long and fruitful partnership. Finally, we appreciate Nevada State Bank’s assistance over the course of our three-plus-year lending connection, and we look forward to extending our treasury partnership with them.”