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Galaxy Gaming raises full-year guidance after record Q2

| By Robert Fletcher
Galaxy Gaming has increased full-year revenue guidance for its 2023 financial year after a record performance in the second quarter.
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The supplier reported new quarterly highs for revenue and adjusted EBITDA during the six months to 30 June. Revenue reached $7.5m (£5.9m/€6.9m), which was 32.6% higher than in the previous year.

Galaxy, which provides casino table games and systems, said this was driven by growth in both its land-based and igaming businesses. The supplier also noted growth across its core Americas operations as well as in Europe, the Middle East and Africa. 

In addition, CEO and president Todd Cravens picked out a number of major new deals agreed in Q2. He said these will support further growth in Q3 and beyond, with Galaxy raising full-year guidance to reflect these expectations.

“Q2 was meaningful for more than just the numbers,” Cravens said. “We announced a 10-year agreement with Evolution, cementing the relationship with our largest customer well into future. 

“We also announced that, in September, we will become the exclusive distributor for EZ Baccarat in the US, Canada, the UK and online, an opportunity that we think can generate several million dollars in new revenue for us. 

“And, after the quarter, we saw the first installations of our GOS platform in the US and UK and we are very pleased with the results.”

Land-based and digital growth at Galaxy

Galaxy’s land-based operations remained its primary source of revenue, with the GG Core segment generating $5.3m. This was up 43.1%, primarily due to the shipment of perpetual right to use gaming systems to a single customer.

The supplier also noted growth within its GG Digital segment, which provides solutions to the igaming sector. Here, revenue increased by 12.4% year-on-year to $2.2m.

Galaxy put GG Digital growth down to customer growth in their traditional markets, as well as their entry into new areas.

Breaking down geographical performance, revenue in the Americas jumped 58.1% to $4.9m. As for Europe, the Middle East and Africa (EMEA), revenue was 3.9% higher at $2.7m in Q2.

Returning to net profit in Q2

Looking at spending and operating costs were 8.5% higher at $5.1m while net other costs, primarily interest expenses, stood at $2.1m. As such, pre-tax profit reached $373,446, in contrast to a $920,664 loss last year.

Galaxy paid $16,677 in income tax and accounted for $25,280 in negative foreign currency translation adjustment. This left a net profit of $331,489, compared to a $1.2m loss in Q2 of 2022.

In addition, adjusted EBITDA jumped 33.3% year-on-year to $3.2m.

Galaxy growth continues throughout H1

As for how Galaxy performed in the first half, the six months to 30 June followed a similar pattern as Q2. Revenue was 28.9% higher at $14.9m, with growth across both land-based and igaming.

GG Core land-based revenue climbed 39.1% to $10.5m, while GG Digital igaming revenue was up 9.9% to $4.4m. In geographical terms, Americas revenue hiked 52.5% to $9.3m and EMEA 1.8% to $5.6m.

Operating costs increased 12.1% to $10.2m and net other costs amounted to $4.2m. This resulted in a pre-tax profit of $489,715, compared to last year’s $1.1m loss.

Income tax payments totalled $22,252 and negative foreign currency translation adjustment was $8,643. As such, net profit for the half stood at $458,820, in contrast to a $1.3m loss at the same point in 2023.

Galaxy also noted a 26.0% increase in adjusted EBITDA to $6.3m.

Full-year guidance increased

Based on its performance during Q2 and H1, Galaxy raised its revenue guidance. For the 12 months to 31 December 2023, revenue is now set to reach between $29.0m and $30.0m. This is higher than initial estimates of $27.5m to $28.5m.

Galaxy also said adjusted EBITDA is expected to reach the upper end of a previously stated guidance range of between $13.0m and $13.3m.

“It has been a very busy six months for us and I want to publicly thank all my fellow Galaxians for their loyalty and dedication,” Cravens said.

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