Browse articles by topic

Galaxy Gaming revenue drops 52% in 2020

News

Casino supplier Galaxy Gaming has released its financial results for the fourth quarter and full year 2020, showing a decline in revenue of 52% for the 12 months to 31 December, 2020.

The supplier brought in a total of $10.2m in revenue for the year, leaving adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.4m, down 84%.

This figure excludes around $652,000 in legal and other expenses related to the company’s litigation with Triangulum Partners LLC.

After expenses, the supplier made a net loss of $2.2m for the period, compared to a net income of $2.9m in 2019.

For the fourth quarter, Galaxy brought in a total of $3.3m in revenue, down 37% year-on-year, leaving adjusted EBITDA of $1.3m, down 41%.

After a gain of $840,243 relating to the forgiveness of its Paycheck Protection Program Loan, the supplier made a net income for the quarter of $1.2m, compared to $848,000 in Q4 2019.

“2020 imposed great stresses on our industry, and Galaxy was not immune,” said Todd Cravens, the company’s president and chief executive.

“From a product perspective, we used the downtime to develop new games and a new technology platform, and we will be launching these in 2021 as they are approved by our regulators.”

“Finally, and most significantly, our acquisition of PGP [Progressive Game Partners] in August made iGaming a much more important part of our business. We expect iGaming to be one of the major growth areas going forward, and we are well-positioned to benefit from those trends,” Cravens concluded.

Galaxy agreed to acquire PGP in February last year, in a deal worth $12.4m. The supplier acquired 100% of the equity interests in PGP, which owns the exclusive global online rights to a range of proprietary casino table games.

The company said the acquisition would allow it to exploit more opportunities in the US online casino market.