Galaxy Gaming delivers financial growth in Q1

Galaxy Gaming has reported year-on-year growth across various key financials in the opening quarter of 2018.

Revenue in the three months to March 31 amounted to $4.4m (€3.7m), up 25% on the corresponding period last year.

Excluding the effect of accounting charge, revenue increased 20% year-on-year to $4.2m.

Pre-tax income rocketed by 184% year-on-year to $682,000, while net income was also up 231% to $537,000.

Galaxy also noted that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped by 28% to $1.6m.

Todd Cravens, president and chief executive of Galaxy, said: “We maintained revenue growth in the 20% range in Q1 2018; however, the increases in operating expenses that we made last year have moderated in Q1 2018, allowing us to deliver growth in EBITDA that exceeded the growth in revenue, and we expect that trend to continue throughout 2018.”

Harry Hagerty, chief financial officer at Galaxy, added: “Revenue as reported for Q1 2018 included $207,000 from our adoption of ASC 606 effective beginning this year.

“Cash decreased slightly in the quarter due to our payment in January 2018 of amounts owed to a strategic partner; excluding that payment, cash would have increased 16%.

“Interest expense decreased in the quarter due to lower debt balances, and we expect further decreases in 2018 as a result of the refinancing we announced last month.

“Finally, our effective tax rate was 21.2%, reflecting the new tax rates enacted late last year.”

Related article: Galaxy Gaming hit by losses in 2017