Developer and supplier of gaming and betting solutions for the international gambling industry NYX Gaming Group today announced its financial results for the second quarter of the year as well as the six months ended June 30, 2016. Quarterly group revenue increased 230% year-on-year to C$35.2 million.
Half-year revenue amounted to C$54.9 million, up 165.9% as compared to the figure reported last year. The substantial growth was mainly attributed to the acquisition of leading sports betting supplier OpenBet for a total consideration of £270 million. Organic revenue, excluding transactions, amounted to C$13.7 million for the three months ended June 30, 2016, up 28% year-on-year. Royalty and license revenue for the period totaled C$20.8 million.
The company reported quarterly gross profit of C$30.8 million, up 238.3% year-on-year. Gross margin for the period in review stood at 87.3% compared to gross margin of 85% posted for the same three months of the previous year. Gross profit for the six months ended June 30, 2016 was up 163.2% to reach C$47 million. Gross margin stood at 85.7% compared to 86.5% reported for the same period of 2015.
Quarterly adjusted EBITDA increased 313.2% year-on-year to C$10.5 million. Adjusted EBITDA for this year’s first six months totaled C$15.3 million, up 224.6% year-on-year.
During the three months ended June 30, 2016, NYX Gaming generated net loss of C$29 million compared to net profit of C$13.9 million reported for the same period of the previous year. Net loss for the first half of the year amounted to C$38.2 million, down from net profit of C$8.8 million during the same six months of 2015.
The Canada-listed developer and provider of online gambling solutions completed the acquisition of fellow supplier OpenBet on May 20, 2016. Thus, NYX Gaming added sports betting solutions to its catalog of product offering and additionally expanded its reach across multiple regulated markets.
The company also acquired UK-headquartered supplier of online gambling content Betdigital for a maximum aggregate consideration of £24.5 million. The transaction was completed on May 27, 2016 and secured NYX Gaming with a game development studio that caters to UK’s both retail and online gambling markets.
During both the second quarter and the first half of the year, the Canadian supplier registered further demand for its Open Gaming System and Open Platform System products. It signed 11 new partnership agreements with internationally recognized operators for the provision of the above-mentioned solutions, with Rush Street Gaming, Sisal, Solverde, and Starcasino becoming some of its latest clients. OGS was also launched with 21 new clients.
Commenting on the company’s latest results published, CEO Matt Davey said that they are pleased with its performance over the reported period. The official further noted that with the acquisitions now being closed, they will focus their attention on integrating the new entities into their business and delivering operational leverage.
NYX Gaming will also remain committed to strengthening its business model and achieving a sustainable revenue growth over the long term and across all divisions so as to benefit both clients and shareholders, Mr. Davey added.
