Record igaming receipts help Galaxy Gaming return to profit in 2021
This is a rise of 95.3% year-on-year compared to Covid-hit 2020, when revenue was $10.2m.
Operations in North America and the Caribbean accounted for $10m of the revenue, while operations in Europe, the Middle East and Africa brought in $9.9m.
Online gaming accounted for $8.1m of the overall revenue total.
Expenses for the year came to $15.6m, up by 25.2% from 2020. Selling, general and administrative costs made up $10.6m of this, up by 18.7%. Depreciation and amortisation costs came in second at $2.8m, rising by 28.6% year-on-year.
The remaining $2.1m was made up of ancillary product costs, research and development expenses and share-based compensation.
After considering expenses, the total profit from operations was $4.3m, an increase of $6.6m year-on-year after a $2.2m loss the year before.
Other expenses, consisting mostly of interest expenses at $1.5m, came to $2.1m.
This brought the profit before income taxes to $2.1m, $4.9m more than in 2020 when the business reported a $2.8m loss.
Following income taxes of $48,637, and a foreign currency translation adjustment at $184,884, the total net income for the period was $1.9m, amounting to a year-on-year increase of $4.0m.
For Galaxy’s fourth quarter, revenue came to $5.6m – a rise of 73%. Online gaming made up $2.1m of the revenue.
The total net income was $598,000, almost half that of the year before, though Q4 income in 2020 was boosted by the forgiveness of a government loan provided through the Paycheck Protection Programme for Covid-19 relief.
Todd Cravens, president and CEO of Galaxy Gaming, praised how the business performed in the fourth quarter amid the Covid-19 pandemic.
“We finished 2021 with positive momentum,” said Cravens. “Even with some of our clients’ properties still affected by Covid-19, we delivered gross revenue of $6.1 million in the fourth quarter, a record.
“Our igaming business performed very well, with igaming gross revenues of $8.1m in 2021, also a record. We believe, as the impacts of the Covid-19 pandemic continue to subside for our clients, we will experience a strong recovery in our GG Core business (felt and electronics) and continued growth in our igaming business.”
Looking ahead to 2022, Harry Hagerty, the company’s CFO, expects increases across the board.
“Our financial position is strong,” said Hagerty. “We have significant cash balances and modest debt maturities this year.
“For fiscal 2022, we are forecasting revenue (net of igaming royalties) in a range of $23.5m to $25.0m, and adjusted EBITDA in a range of $11.5m to $12.5m.”
Mark Lipparelli, chair of the Galaxy board, also spoke of the company’s settlement payment to Triangulum Partners and its former chairman and CEO, Robert Saucier.
The settlement came about after Triangulum sued Galaxy, stating that Galaxy had tried to force Triangulum to sell its shares following a regulatory disagreement.
“We also, through substantial efforts of our collective team, set the Saucier litigation and related refinancing in our rear-view mirror in the midst of the tough operating environment of our customers which, in some cases, included complete closures,” said Liparelli.