Galaxy Gaming expects igaming to become one of its “major growth areas” in the future, claiming that it is “well-positioned to benefit” from new developments.
The remarks come as the Las Vegas-based business focuses on a year that “imposed great stresses on our industry,” with the $12.425 million purchase of Progressive Games Partners in August acting as a primary source of hope.
According to Galaxy, the acquisition is strategically beneficial due to the increased exposure to the igaming market, which is expected to expand significantly, particularly in the United States.
It also removes the group’s sales charge to PGP on Galaxy-owned games, enabling it to produce more igaming licence income from titles owned by other licensors.
Latest trading statement
Galaxy Gaming has released its newest trading statement, reporting a 37 percentage decline in sales to $3.27 million in the fourth quarter of 2020, when adjusted EBITDA fell 41 percent to $2.26 million and net profits fell to $1.17 million, compared to $848,000.
Todd Cravens, Galaxy’s president and CEO said: “2020 imposed great stresses on our industry, and Galaxy was not immune. However, I think we turned some of those stresses to our advantage.
“We were able to accommodate our clients during their closures and provide timely service to help them reopen, earning very high net promoter scores in an especially challenging time.
“From a product perspective, we used the downtime to develop new games and a new technology platform, and we will be launching these in 2021 as they are approved by our regulators.
“Finally, and most significantly, our acquisition of PGP in August made igaming a much more important part of our business. We expect igaming to be one of the major growth areas going forward, and we are well-positioned to benefit from those trends.”
Revenue dropped 52 percent to $10.2 million (2019: $21.3 million), adjusted EBITDA fell 84 percent to $1.37 million (2019: $8.79 million), and the producer and distributor concluded the year with a $2.2 million net loss, compared to a $2.94 million profit the year before.
Pandemic motto ‘Survive then Thrive’
Harry Hagerty, Galaxy Gaming CFO said: “Our motto in the pandemic was ‘Survive then Thrive,’ and thanks to the great cooperation and assistance from our friends at Nevada State Bank and the availability of certain government relief programs, we came through 2020 intact.
“We hope that the first half of 2021 will mark the end of the survive phase and that the great things that Todd mentioned in his comments will allow us to start thriving in the second half of 2021 and accelerating into 2022.”