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GALAXY GAMING REPORTS Q1 2024 FINANCIAL RESULTS

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GALAXY GAMING REPORTS Q1 2024 FINANCIAL RESULTS

 

Galaxy Gaming, Inc., a developer and distributor of casino table games and enhanced systems for land-based casinos and iGaming content, announced its financial results for the quarter ended March 31, 2024.

Financial Highlights

Q1 2024 vs. Q1 2023

  • Revenue (net) increased 8% to $8,001K, a record
    • Revenue (gross) increased 18% to $9,660K, a record
  • Net income increased 89% to $209K
  • EBITDA increased 7% to $3,009K
    • Adjusted EBITDA increased 3% to $3,171K

Balance Sheet Changes (vs. December 31, 2023)

  • Cash increased 5% to $17,487K
  • Total long-term debt1 (gross) decreased to $58,187K from $58,431K
  • Stockholders’ deficit decreased to $(17,899)K from $(18,243)K

Executive Comments

“The first quarter of 2024 showed continued growth at the top and bottom lines,” said Matt Reback, President and CEO. “Both gross and net revenue were records, and by significant margins.   And our Adjusted EBITDA was just shy of the record achieved in Q2 23, when we had $1.6 million in perpetual license sales as compared to $805 thousand in Q1 24. While sales of perpetual licenses were higher than we had planned in Q1 24, they were lower than last year and we remain principally reliant on recurring license revenue, which was 92% of gross revenue in Q1 24 as compared to 85% in Q1 23.

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“In the Core sector of our business, Gross Revenue for the quarter was up $1.0 million (20%) and Net Revenue grew by $225 thousand (+4%). Our distribution of EZ Baccarat¼, which commenced in September 2023, accounted for the bulk of the increase in recurring license revenue in our Core sector. Also, our GOS product continues to gain momentum with over 100 installations, and development of GOS 2.0 continues on schedule for release later this year. In our iGaming sector, revenues were up 14% on a gross basis and 16% after netting out royalties.

“We have been hard at work on product development under the leadership of Michael Ratner, and I expect that we will have some interesting product innovation news to announce in the coming months.” concluded Reback. “This has been a principal area of focus for me since I joined Galaxy late last year and I am proud of the momentum our entire product team is gaining.”

“We were cash flow positive in the quarter and ended with $17.5 million in cash,” added CFO Harry Hagerty. “Our loan from Fortress Credit Corp. requires our net leverage not to exceed 5.0x at any of the quarter-ends in 2024, and at the end of Q1 we were at 3.8x, comfortably in compliance. It remains our intention to reduce our net leverage by focusing on both EBITDA growth and debt reduction and to pursue sensible refinancing opportunities.

“Our Q1 2024 results strongly support the guidance that was given when we released our Q4 2023 earnings. However, we will wait until we have Q2 results in hand and better visibility into the second half of the year before considering whether any changes to guidance would be appropriate. As stated previously, our guidance assumes no impact to our business from the wars in Ukraine and the Middle East, no economic recession or pandemic, and is a Forward-Looking Statement subject to our safe harbor language below. Finally, the forecast is based on currency exchange rates that we experienced in the fourth quarter of last year.”

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QTech Games recruits David Camacho to take the lead for LatAm markets

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QTech Games recruits David Camacho to take the lead for LatAm markets

QTech Games, the leading games distributor for all emerging markets, has appointed David Camacho to the new role of Account Manager for LatAm Markets.

Camacho arrives at QTech Games after a successful and long-serving spell at Tabella, a global powerhouse across varied igaming verticals, where he proved himself across a range of senior roles focusing on the LatAm markets. At QTech Games, David will drive sales and its existing presence across Central and South America, growing its global footprint in more Spanish and Portuguese-speaking territories.

QTech Games commented: “We’re delighted that David is now part of the QTech team. His extensive experience and network in the industry are second to none, after over two decades in the sector. So, he will prove a true asset to both QTech Games and all our clients, as we will deepen our existing influence across Hispanic markets in Central and South America.

“Recruiting the best localised talent and expertise has always been a central pillar of our strategy. Therefore, we’re naturally thrilled to have David on board.

David Camacho added: “I’m excited to be joining QTech Games, a company with the most remarkable content suite across varied igaming verticals, all delivered via a stellar platform built on bleeding-edge technology. I can’t wait to get started by deploying my business connections and contacts across a region I know so well at such a crucial point in its maturation.

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“Of course, when it comes to LatAm, everyone’s talking about the unfolding scene in Brazil, but I’ll also be concentrating our efforts in more mature countries such as Colombia and Mexico, alongside some other opportunities in Peru, another promising territory with one of the most operator-friendly regulations in recent times. Argentina and Chile will also be interesting in due course. Apart from the strong growth in this region, I believe we will be able to fuel it further with our new QTech Hybrid product that fits perfectly in all these markets!”

QTech Hybrid – get in touch to find out more!

QTech Hybrid will next be showcased at the upcoming SBWA+ show in Ghana in August, where QTech Games delegates will be on site to unpack its breakout technology and salient applications for joining up the retail and digital-mobile experience. QTech Hybrid offers a retail solution that can be transferred seamlessly to mobile in any emerging market, enabling the customer to continue playing after leaving the retail environment. QTech Hybrid allows players to access the full game library of QTech Games, while the retail solution also contains a state-of-the-art Agent Management System. It’s also an instant win for efficient payments. 

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BETBY AND PIXBET ENTER LONG-TERM BRAZILIAN SPORTS BETTING PARTNERSHIP

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BETBY AND PIXBET ENTER LONG-TERM BRAZILIAN SPORTS BETTING PARTNERSHIP

 

BETBY strengthens its Latin American position with agreement to power leading Brazilian brand Pixbet

BETBY, the premium sports betting supplier, has signed a long-term sports betting agreement with Pixbet. The partnership will see Pixbet leverage Betby’s award-winning sports betting solution and services to upgrade its current sportsbook, offering Brazilians a best-in-class online betting experience.

Pixbet a leading Brazilian bookmaker present throughout the national territory, is well known for its bold marketing strategy, having earlier this year been announced as the new shirt sponsor for Brazilian soccer club Flamengo under a lucrative two-year deal.

Chris Nikolopoulos, Chief Commercial Officer at Betby, said: “It is a pleasure to have put pen to paper on this agreement with Pixbet, an operator whose management team boasts clear expertise and a passion for sports betting that mirrors our own.

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“This agreement further bolsters Betby’s impressive range of partners throughout Brazil and Latin America, and we are excited to capitalise on the rich promise this partnership holds.”

Ernildo Junior, owner of Pixbet, said: “We are very pleased to have signed with Betby as we look to further deliver on our sports betting ambitions to become the leading betting brand in Brazil.

“Betby has a proven track record in Latin America and its suite of high-performance sportsbook technology will provide our players with a superior sports betting experience whilst providing us with cutting-edge risk management tools.”

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Press Releases

Arizona Department of Gaming Releases May Sports Betting Figures

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Bettors in Arizona wagered approximately $568.5 million on sports in May of 2024, according to a new report by the Arizona Department of Gaming. This represents an approximate 25.9% increase when compared to May of 2023.

The state collected approximately $4.3 million in privilege fees in the month.

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