Galaxy Gaming experienced a profitable third quarter in 2021, with earnings nearly tripling.
The land-based provider Galaxy Gaming generated $5.3 million in revenue during the third quarter of 2021, a significant increase of 194.4% compared to the same period in the previous year.
Galaxy Gaming achieved profitability in the third quarter of 2021, with revenue nearly tripling.
The total revenue for the quarter was solely derived from licensing fees. Of this amount, $2.8 million originated from Europe, Africa, and the Middle East (a 157.7% rise from 2020), while the remaining $2.3 million stemmed from North America and the Caribbean (a 250.0% increase).
Galaxy’s expenditures for the quarter amounted to $4.1 million, an increase from $2.7 million in the previous year. The largest expense was $2.7 million in general and administrative costs, followed by $722,475 in depreciation and amortization, $449,565 in stock-based compensation, and $156,768 in research and development expenses.
Operating income reached $1.2 million, a notable improvement compared to a loss of $898,303 in 2020. After accounting for a $195,482 stock redemption, $129,422 in interest expense, $33,781 in foreign exchange losses, and $21,186 in income taxes, the quarter’s net profit was $874,236, a significant turnaround from a loss of $1.3 million in the same period last year.
Adjusted EBITDA reached $2.5 million, a substantial increase of 6,844.4% from 2020.
Galaxy Corporation’s leader, Todd Cravens, declared that the organization achieved its objectives, which it had been striving for since the beginning of 2020, in the third quarter of 2021.
“Income, modified earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted EBITDA margin all established new highs, even though a substantial portion of our UK land-based customers remained closed during the period. We anticipate our land-based operations to continue to recover from COVID-related closures, while our online business continues to expand in Europe and North America.”
Galaxy’s chief financial officer, Harry Hagerty, added that the revival of the physical business is ongoing, and the company is benefiting from robust performance in the online realm. Consequently, liquidity is enhancing. Hagerty anticipates these trends to persist for the rest of 2021 and into 2022.
Galaxy also revealed that it had fully discharged the settlement amount to accounting equipment firm Triangulum Partners and the company’s former head and CEO Robert Saucier. This was accomplished through a short-term loan credit arrangement with Fortress Credit Corp, estimated at roughly $60 million.
Triangulum filed a lawsuit against Galaxy after the company divested its stake following a disagreement regarding regulatory issues. Triangulum was a significant stakeholder in Galaxy.
Concerning the settlement, Cravens stated, “The Fortress transaction and the resulting fulfillment of the settlement agreement are a notable achievement for Galaxy.”
The legal disputes have concluded, enabling us to concentrate on our clientele, offerings, and expanding our enterprise.
“We value Fortress’s faith in us and anticipate a mutually advantageous collaboration. We are also thankful to Nevada State Bank for their assistance over the past three years, and we anticipate continuing our financial association.”
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