Galaxy Gaming has stressed numerous points of optimism as increased guidance for the year is disclosed following a record quarter for the company across several financial segments.
This comes as the developer and distributor of casino table games and systems for land-based casinos and igaming stressed an overarching ambition of continuing to reduce its net leverage, which will enable Galaxy “to act when the bank market improves”.
Revenue through the second quarter of the year increased 33 per cent to $7.52m (2022: $5.67m), while adjusted EBITDA followed suit to close at $3.21m, up 36 per cent from $2.35m year-on-year. Net income is reported as $356,769, a swing from a loss of $1.11m in 2022.
The group’s performance through the year-to-date followed suit, with revenue and AEBITDA up 29 per cent and 25 per cent to $14.94m (2022: $11.59m) and $6.3m (2022: $5m), respectively. Net income of $467,463m through H1 is contrasted to a loss of $1.12m YoY.
“Q2 2023 was a record quarter for us in revenue, adjusted EBITDA and cash on hand,” explained Todd Cravens, President and CEO. “But Q2 was meaningful for more than just the numbers. We announced a ten-year agreement with Evolution, cementing the relationship with our largest customer well into the future.
“We also announced that, in September, we will become the exclusive distributor for EZ Baccarat in the US, Canada, the UK and online, an opportunity that we think can generate several million dollars in new revenue for us.
“And after the quarter, we saw the first installations of our GOS platform in the US and UK and we are very pleased with the results. It has been a very busy six months for us and I want to publicly thank all my fellow Galaxians for their loyalty and dedication.”
As a result of the above, Galaxy Gaming has also revealed that it has heightened its expectations through the full-year.
Revenue is now expected to reach $29m-$30m, versus its previously disclosed $27.5m-$28.5m, with AEBITDA guidance now set at the high end of a past forecast at $13m-$13.25m.
“We expect significantly reduced sales of perpetual licences in the second half of 2023, offset by increased revenue from our GOS installations as well as from EZ Baccarat placements,” stated Harry Hagerty, Galaxy CFO.
“This forecast assumes no impact to our business from the war in Ukraine, and no economic recession. Finally, the forecast is based on currency exchange rates that we experienced in the second quarter.”