Gaming equipment supplier Galaxy Gaming has posted revenue figures of $4.3m (€3.5m/£3.0m) for the first quarter of 2021, which represents a 4.7% decrease on the same period last year.
Of this $4.3m, $2.5m was generated in North America and the Caribbean, while the remaining $1.8m came from Europe, Africa and the Middle East.
The company cited the impact of the Covid-19 pandemic as a major contributing factor to the drop in revenue and income; land-based casinos were closed for much of the quarter, and they were subject to heavy restrictions when they were able to open up again.
However, its new online product – facilitated by the acquisition of Progressive Games Partners – helped reduce this impact. The supplier did not break down how much of its revenue came from the online product, though.
Overall costs increased slightly by 2.6% to $3.9m. This was mainly due to an increase in both share-based compensation (up 100.9% to $316,640) and depreciation and amortization (increasing 52.7% to $717,254).
General and administrative costs fell to $2.7m from $3.0m, research & development costs decreased to $118,701, and the cost of ancillary products dropped to $14,304.
As a result, there was a drop in operating income, which was down 41.9% to $404,950. Interest income fell to $382, a significant 98.2% decrease from last year. Interest expenses totaled $180,910, share redemption considerations amounted to $195,482, and foreign currency exchange losses cost $8,975.
Income before tax came to $69,787, with an additional $18,950 coming from income tax benefit
Net income was down on the whole, decreasing 23.9% to $88,737. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was up however, rising 13.3% to $1.7m.
Galaxy CEO and president Todd Cravens said: “The COVID pandemic continued to affect our business in Q1.
“Casinos in the UK, our largest brick-and-mortar market, were shuttered for the entire quarter, and we continued to see capacity limitations in other important markets. However, as was the case in Q4 2020, our igaming business made up most of the difference. iGaming went live in Michigan in February, and volumes were very strong.
“We expect additional increases in activity when our live dealer clients open up there. In addition to igaming, new installations of our games and progressives in new markets continue to add to the top line.”