Galaxy Gaming, a prominent developer of casino table games, has released its financial results for the quarter ending on September 30, 2023. The company reported an increase in revenue, but also stated that its net loss had doubled.

During the third quarter of 2023, Galaxy Gaming saw a 3% increase in revenue, amounting to $6.1 million. However, the company’s Adjusted EBITDA declined by 36% to $1.5 million.

The company also reported a net loss of $1.45 million for the quarter, which was significantly higher than the $699,000 loss recorded in the third quarter of 2022.

On a year-to-date basis, Galaxy Gaming’s revenue for the first nine months of 2023 totaled $21 million, marking a 20% increase compared to the previous year. The Adjusted EBITDA for the same period also saw a modest increase of 6% to $7.8 million.

Despite the increase in overall net loss for the nine-month period, the company’s net loss was still lower than that of the same period in 2022.

Galaxy Gaming also reported a 13% decrease in cash, with the total long-term debt decreasing slightly from $59.6 million to $58.7 million. However, the stockholders’ deficit increased from $17.8 million to $18 million.

Looking ahead, the company anticipates fourth-quarter revenue of approximately $7-$7.5 million, with adjusted EBITDA expected to range from $2.8-$3.2 million, assuming no impact from the ongoing wars in Ukraine and the Middle East.

Despite the setbacks, Todd Cravens, the president and CEO of Galaxy Gaming, expressed optimism about the results. He acknowledged the challenges faced in the third quarter, attributing the decline to lower sales of perpetual licenses. Cravens emphasized the company’s commitment to pursuing such sales, despite the potential impact on quarterly results.

Cravens also cited increased expenses, including costs of sales, compensation, and legal and regulatory expenses, as contributing factors to the decline in performance. He noted that the company’s cash position declined as a result of purchasing over $1 million in equipment to meet the demand for its products.

Additionally, Cravens highlighted the company’s successful participation in the G2E show, positioning Galaxy Gaming for increased revenue in 2024. He also mentioned the company’s partnership with Carnival Corporation to offer progressive jackpots on their ships, powered by Galaxy Gaming’s technology. Furthermore, Galaxy Gaming became the distributor for EZ Baccarat, a move that could potentially boost the company’s annual EBITDA by over $3 million.

By admin