Galaxy Gaming has become the latest firm to document plunging financial results for the second quarter, an outcome anticipated earlier in the year with the firm asserting that casino shutdowns would have far reaching consequences in a plethora of Q2 reports.
This followed the developer and distributor of casino table games and systems for land-based casinos and igaming previously being buoyed by its 2019 performance, before the global pandemic forces closures worldwide.
“The second quarter of 2020 was painful for everyone in the global casino industry,” explained Todd Cravens, Galaxy’s president and CEO. “We earned virtually no revenue from our land-based clients, almost all of whom were shut for the entire quarter.
“We used the time to develop new games and technologies that we hope to introduce later this year. Our online gaming business continued to perform well, and we expect to close our acquisition of Progressive Games Partners later in August, which will allow us to work more closely with our igaming clients.”
For the quarter ending June 30, 2020, Galaxy Gaming saw revenue plummet 88 per cent from $5.39m to $663,972, as net loss reached $2.2m from an income of $1.05m in 2019 and adjusted EBITDA fell 159 per cent to negative $1.42m.
Group performance during the frst half of the year highlights a 52 per cent revenue drop from $10.74m to $5.15m, net loss plunging to $2.09m from an income of $1.51m reported a year earlier and adjusted EBITDA decreasing 98 per cent to $80,000.
“Our liquidity remained stable in Q2 as we drew down on our revolver and accessed funds through the PPP program,” stated Harry Hagerty, Galaxy’s CFO. “We have been current in payments of interest and principal on our debt obligations even as our revenues were significantly diminished.
“However, going forward, we expect that the second-quarter results will negatively affect our ability to meet one or more of the financial covenants in our bank debt, and we are pleased that Nevada State Bank has agreed to forbear enforcing certain of the covenants through the first quarter of 2021.”