Galaxy Gaming, the developer of casino table games and enhanced systems for land-based casinos and iGaming content, has reported its financial results for the second quarter of 2022.
There was an increase in revenue of 20% or $5.6m, while adjusted EBITDA increased 10% to $2.3m. The quarter ended in a net loss of $1.1m versus net income of $550,000 for the same period last year.
The year-over-year numbers displayed a revenue increase of 28% to $11.5m and adjusted EBITDA increased 31% to $5m. Cash increased 7% to $17m while total long-term debt decreased to $59m from $60.5m.
Galaxy’s CFO Harry Hagerty commented: "The second quarter of 2022 was a perfect storm of rates – foreign exchange rates, inflation rates and interest rates.
"The appreciation of the US Dollar against the Euro and the British Pound cost us $190k in revenue in the quarter (as compared to what we would have realized using the rates that applied in Q2 2021).
"We have seen very little benefit from the new rates on the expense side, as most of our expenses are denominated in dollars. The increase in inflation has affected us as we have seen significant increases in travel expenses and are having to offer increased salaries and wages to hire new employees and to retain existing ones."
President and CEO Todd Cravens added: "The external conditions that Harry described masked what was an excellent quarter and first half.
"On a constant currency basis, revenue increased by 24% in the quarter and 32% in the first half as compared to the same periods in 2021."
The company plans to release its online roulette and baccarat titles in the second half of 2022 to pair with the current blackjack titles offered.
Hagerty continued: "We had more than $17m in cash at quarter-end and were comfortably in compliance with the net leverage covenant in the Fortress Credit Agreement."
Headquartered in Las Vegas, Nevada, Galaxy Gaming Inc., plans to demonstrate its Triton 2.0 progressive platform at G2E in October.
