The chief executive of Galaxy Gaming, Todd Cravens, cautioned that the gaming sector is still encountering challenges brought on by the COVID-19 outbreak, even though the firm saw a substantial increase in revenue during the third quarter compared to the previous quarter.
Although revenue dropped by 66.5% year-on-year to $1.8 million in the third quarter, it marked a 171.4% rise from the second quarter, which encompassed the period when most, if not all, of Galaxy’s partner operators’ establishments were shuttered due to the pandemic.
The Americas and the Caribbean contributed the lion’s share of third-quarter revenue, generating $971,147, a decrease of 75.0%. Meanwhile, revenue from Europe, the Middle East, and Africa decreased by 44.1% to $826,686.
However, revenue was largely counterbalanced by operating expenditures, leading to a 98.4% drop in earnings before interest, taxes, depreciation, and amortization (EBITDA) to $35,703.
When taking into account other expenses, such as stock-based compensation, depreciation, and amortization, Galaxy’s operating loss for the quarter amounted to $898,303. This represented a substantial decrease from the $762,272 operating profit recorded in the preceding year.
Removing non-operational expenditures, the primary costs encompass interest charges and charges associated with the repurchase of stock issued by Progressive Games Partners (PGP), the online vendor acquired by Galaxy, which experienced a pre-tax deficit of $1.2 million.
Following the deduction of $133,708 in income tax, the company’s net deficit for the period amounted to $1.3 million, in contrast to a profit of $580,234 in the third quarter of 2019.
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