Galaxy Gaming has stressed pleasure at its performance across the first three months of the year, as the group also reveals a slight heightening of guidance expectations for the full-year.
This comes after the developer and distributor of casino table games and enhanced systems for land-based casinos and igaming firms encountered a number of headwinds from exchange, interest and inflation rates during 2022.
Revenue through January to March recorded a 25 per cent uptick to $7.42m (2022: $5.91m), as net income swung to $111,000 from a loss of $14,000 that was disclosed one year earlier. Elsewhere, adjusted EBITDA through the first quarter of the year increased 15 per cent from $2.67m to $3.08m.
Todd Cravens, President, and CEO, explained: “Our revenues, which were a record, include approximately $1.3m of perpetual licence purchases from a large customer in GG Core, and we expect more of these purchases in the second quarter.
“Without these purchases in Q1 23, our GG Core revenues were $3.9m vs $3.8m in Q1 22. In our GG Digital business revenues (net) were $2.3m vs $2.1m in Q1 22. We anticipate that Q1 23 will be the last quarter in which year-over-year comparisons are adversely affected by exchange rates.
“In April, our GOS platform was approved by the testing lab, and we are now receiving the necessary approvals to sell GOS in jurisdictions where such approval is required.”
As a result of the above, Harry Hagerty, CFO, has disclosed an increase in expectations for the year, with revenue now aiming to reach $27.5m-$28.5m, from $26m-$27m, with AEBITDA up to $13m-$13.23m, from $12m-$13m.
This, said the company, assumes that no further impact is felt from the war in Ukraine and a lack of economic recession. This is also based on currency exchange rates experienced during Q1.
“We paid down $733K of principal on the Fortress loan in Q1, and net leverage was 3.9x at the end of the quarter, comfortably below the 6.0x maximum” added Hagerty.
“We saw an increase in receivables from some of our largest customers and a decrease in payables to one of our largest vendors, with the result that we saw a decrease in cash in the quarter. We believe that our liquidity will remain strong through the balance of the year, and we continue to target a refinancing of our debt in late 2023.”
