Galaxy Gaming netted $5.7 million just from Q2 of 2022 alone, which makes the giant manufacturer of casino table games one of the biggest earners among its competitors with a 20% increase in revenue as opposed to this time last year.
More specifically, after adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) Galaxy Gaming made a 10% increase of $2.4 million, which is a “bit” more than the $2.1 million for Q2 in 2021.
And while we are on the subject of profits, Galaxy Gaming also reported a hefty 28% increase in revenue, or $11.6 million, during the first six months of 2022, or until the 30th of June. Even with EBITDA adjusted, the company made around $5 million, which is a 31% increase in contrast to 2021.
Moreover, Galaxy Gaming also reports losses of $1.1 million for Q2, as opposed to the $550.000 revenue for the same quarter. Speaking of H1 of 2022, the company also reported
Yet, despite these solid numbers and the increase in revenue of $5.7 million for Q2, the CFO of Galaxy Gaming, Harry Hagerty, states that the global economic crisis, I.e. inflation, has done far more damage than anyone could have imagined.
The second quarter of 2022 was a perfect storm of rates – foreign exchange rates, inflation rates and interest rates. The appreciation of the US Dollar against the Euro and the British Pound cost us $190K in revenue in the quarter, as compared to what we would have realized using the rates that applied in Q2 2021. We have seen very little benefit from the new rates on the expense side, as most of our expenses are denominated in dollars. The increase in inflation has affected us as we have seen significant increases in travel expenses and are having to offer increased salaries and wages to hire new employees and to retain existing ones. Finally, the floating interest rate on which our long-term debt is based has risen by 116 basis points from January to July.Harry Hagerty – CFO at Galaxy Gaming
Yet, all is not gloom for Galaxy Gaming. In fact, the company reported a positive balance regarding its debts, which decreased from $60.5 million, down to $59.9 million.
According to the CEO of Galaxy Gaming, Todd Cravens, the CFO spent too much time reflecting on the negative aspects, thus missing out on the chance to actually mention this rather important feat.
The external conditions that Harry described masked what was an excellent quarter and first half. On a constant currency basis, revenue increased by 24% in the quarter and 32% in the first half as compared to the same periods in 2021. And we have some exciting things happening in the second half. In Galaxy Core, our land-based business, one of our high-end UK customers will launch the first three-meter progressive, with a top side bet of £100 – the first in the world. I’m excited about the fundamentals of our business and am confident we’ll manage through the wider macroeconomic issues. We focus on the things we can control.Todd Cravings – CEO at Galaxy Gaming
Galaxy Gaming is known in the casino world as a household name that is among the leading distributors and producers of casino table games, both digital and physical. Being that the company initially started out by providing physical casino games, since then, it has established itself as part of the top-tier providers.