NYX Gaming hails M&A strategy as finances rocket in Q3

NYX Gaming Group has cited the impact of its ongoing merger and acquisitions strategy as the main reason for significant financial growth during the three months to September 30.

Revenue came in at $54.4 million (€50.7 million) in the third quarter, around 300% more than in the corresponding period last year.

NYX said the acquisitions of Chartwell and Cryptologic in July 2015 helped to boost revenue, as did a full-quarter contribution from OpenBet, which it took ownership of in May of this year.

Gross profit hiked 340% year-on-year to $49.1 million, with a heighted gross profit percentage of 90%, as a result of an increase in revenue from the firm’s underlying core casino business and revenue impact from acquisitions.

In addition, net income tax benefit was up from $200,000 to $2.7 million, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) climbed from $1.1 million to $14.5 million.

As a result of the impressive third-quarter performance, NYX’s revenue for the year-to-date, through to the end of September, stands at $75.3 million, 221.9% more than at the same point last year.

Gross profit in the nine-month period jumped by 231.7% to $96.1 million, while net income tax benefit increased to $3.2 million and adjusted EBITDA climbed to $29.8 million.

Matt Davey, chief executive of NYX, said: “NYX continues to deliver strong organic growth across all product verticals.

“Through our M&A activity, we have built the foundations of a world-class digital gaming software supplier that focuses on regulated markets.

“The team has made significant progress against a number of key objectives that position us at the forefront of the industry opportunity.

“We are entering phase two of our journey now to unlock the true value of our operations and we continue to see market-leading demand for our products and services.”

Related article: NYX secures licensing agreement with OEG