Despite the progress made in the first quarter of the year, Galaxy Gaming has stated that the COVID-19 pandemic continues to have a significant effect on its market.
With casinos in the UK, the group’s largest brick and mortar market, closed for the entire quarter and only reopening this week, the company is praising its igaming business once again.
Major growth area
Similarly to Galaxy Gaming’s announcement in the fourth quarter of last year that igaming will become one of its “major growth areas going forward,” the segment has been praised for “making up most of the difference” after land-based struggles.
Harry Hagerty, the company’s CFO said: “Despite the continued effects of COVID, we managed to make modest headway in Q1. While revenue was slightly down versus Q1 of 2020, adjusted EBITDA was up and we had positive cash flow.
“We are hopeful that COVID-related closures and limitations continue to recede through the remainder of 2021, allowing us to have normalised results in both the brick-and-mortar and online channels in 2022.”
Revenue for the quarter ended March 31, 2021 was $4.28 million, down 4.7 percent year over year, but up 30.8 percent from $3.27 million in Q4 2020.
The $89,000 in net income compares to $117,000 in the same period a year ago, with Adjusted EBITDA up 12.8 percent to $1.69 million.
iGaming makes up for brick-and-mortar closures
Todd Cravens, Galaxy’s President and CEO said: “The COVID pandemic continued to affect our business in Q1.
“Casinos in the UK, our largest brick-and-mortar market, were shuttered for the entire quarter, and we continued to see capacity limitations in other important markets.
“However, as was the case in Q4 2020, our igaming business made up most of the difference. Igaming went live in Michigan in February, and volumes were very strong. We expect additional increases in activity when our live dealer clients open up there.
“In addition to igaming, new installations of our games and progressives in new markets continue to add to the top line.”
He added: “I am happy to see progress in Q1, and am looking forward to getting all our customers up and going, as well as bringing new clients into the Galaxy.”