NYX Gaming Group, a Canada-listed online gaming developer servicing multiple international operators, today reported its financial results for the third quarter of 2016. Group revenue roared in the reviewed period to reach C$54.4 million, reflecting a 308.9% increase from the same three months of the previous year.
The significant growth was attributed to the prior-year acquisition of the Cryptologic and Chartwell businesses as well as the purchase of online sports betting provider OpenBet in May 2016. During the quarter in review, eight new NYX Gaming clients went live with its content, which, too, had a positive effect on the company’s financial performance.
Royalty and License revenue totaled C$26.5 million, up 130.9% year-on-year. Revenue from professional services increased to C$24.7 million from C$0.4 million generated during the same quarter of the previous year.
Gross profit totaled C$49.1 million during the period in review, mirroring a 342.1% rise from the previous year. Net income increased from C$0.2 million in the third quarter of 2015 to C$2.7 million for the same three months of 2016.
Adjusted EBITDA also rose considerably to reach C$14.5 million. NYX Gaming said that the increase was mainly driven by strong organic growth in their real-money online casino operations and the acquisition of the OpenBet business.
The iGaming developer and supplier saw another quarter of strong demand for its Open Gaming System and Open Platform System products, signing six new agreements for those. In addition, eight international operators went live with its casino games during the three months ended September 30.
NYX Gaming’s OpenBet subsidiary supported Sky Betting & Gaming’s expansion into Italy, powering the UK gambling operator with its sports betting technology and services. OpenBet also deployed successfully its omni-channel offering with Singapore Pools, with Singapore’s national operator going live with its content distributor’s sportsbook. Singapore Pools has launched betting on football and Formula 1 options as a result from its partnership with OpenBet.
Group revenue for the nine months ended September 30, 2016 amounted to C$109.2 million, up 221.9% year-on-year. Gross profit jumped 231.7% from the previous year to reach C$96.1 million. Net income tax benefit totaled C$3.2 million, up from the amount of C$0.4 million reported for the same nine months of 2015. NYX Gaming generated adjusted EBITDA of C$29.8 million, an increase of C$14 million from the prior-year period.
To comment on his company’s performance, CEO Matt Davey said that they have once again delivered strong organic growth, widely supported by their recent M&A activity. Mr. Davey further noted that NYX Gaming is now entering the second phase of its journey to “unlock the true value” of its operations and to maintain market-leading demand for its offering.
