International edition
June 17, 2021

Revenue: USD 10.7M

NYX Gaming Group reports 2Q financial results

NYX Gaming Group reports 2Q financial results
NYX Gaming Group Limited has announced its financial and operating results for the second quarter June 30, 2015. All amounts expressed are in Canadian dollars unless otherwise noted.
United Kingdom | 08/28/2015

NYX Gaming Group Limited has announced its financial and operating results for the second quarter June 30, 2015. All amounts expressed are in Canadian dollars unless otherwise noted.

"

I'm pleased to announce that Q2 was a very strong quarter for NYX, as we closed the purchase of Game360 and the buyout of our joint venture partner, Sportech, in New Jersey.   This quarter, we have generated record revenues in our core business driven by the strong organic performance of our gaming products and are well advanced in our realization of meaningful cost synergies from our recent acquisition of Chartwell and CryptoLogic." said CEO Matthew Davey. 

Second Quarter Three Month 2015 Highlights

Revenue of $10.7 million 44.5% growth year-over year growth;
Revenue excluding acquisitions of $9.8 million or 32.0% year-over year growth;
Royalty and License Revenue excluding acquisitions of $8 million or 38% growth;
Gross Profit of $9.1 million;
Adjusted EBITDA of $(0.6) million including the results of Ongame and $2.5 million excluding Ongame;
Adjusted Net Income of $1.5 million excluding $3.3 million in losses from Ongame and the $17.4 million gain of the buyout of the Sportech joint venture and acquisition charges of $1.7 million;
Basic and diluted income per share of $0.41 and $0.31 and $0.26 and $0.20 for the three and six month period;
Adjusted basic and diluted income (loss) per share of $0.04 and $0.03 and ($0.01) and nil for the three and six month period, when excluding Ongame,the purchase of the Sportech joint venture, and acquisition and restructuring charges;
Signed 12 new contracts and launched 9 new customers during the quarter;
Revenue pipeline includes 28 signed contracts in various stages of development
Subject to shareholder approval, the Board of Directors approved the Normal Course Issuer Bid ("NCIB") to purchase up to 5% of NYX's common shares;

Subsequent events to quarter-end:

On July 31, 2015 the company announced that has completed its previously announced acquisition (the "Acquisition") of the entire issued share capital of Amaya (Alberta) Inc., formerly Chartwell Technology Inc. ("Chartwell") and CryptoLogic Limited ("CryptoLogic") for an initial purchase price consisting of $110 million in cash, subject to a customary working capital adjustment and the issuance of $40 million exchangeable preferred shares of a subsidiary of NYX to Amaya.  NYX also entered into a preferred supplier licensing agreement with a subsidiary of Amaya to provide casino gaming content to Amaya's real-money casino offering, which will be integrated into two of the world's largest online poker rooms, Pokerstars and Full Tilt.  The Acquisition increased our customer base from 130 to 170. Additionally, we are ahead of schedule with our integration and cost synergy achievements On August 7, 2015 we announced that the Company has entered into a long-term global agreement to provide online poker and casino games to planetwin365 and the SKS365 Group - one of the largest gaming operators in the Italian market, for a minimum of five years. The partnership will start with the planetwin365 site which is expected to launch on NYX Poker in Q4 2015. This will significantly enhance the network's player liquidity. Once complete, it will position NYX Poker as a top tier B2B poker platform on a global level.  In addition, the Company has acquired eGaming Consulting, which previously supplied planetwin365 with their gaming operations. The current eGaming Consulting team of 14 people located in Belgrade will augment NYX's existing poker operations and lead to an overall reduction in costs for NYX as the resources are integrated.  The total investment, which includes a mobile platform is €7,500,000 cash, which includes a sum of €3,375,000 that will be paid on closing. Then remainder will be paid over the following six months as clear milestones are met.  The purchase price paid is based on a range of 5.5x to 7.5x 2015 estimated EBITDA and financed with cash on hand (which includes the expected revenue from the long term global agreement with planetwin365). The transaction remains subject to customary gaming regulatory approvals.

Summary of results 

 Q2 2015 Operating and Financial Results

During Q2 2015, we signed 6 new Open Gaming System ("OGS") contracts and received 11 letter of intent's ("LOIs") from clients committed to launch OGS and NYX Open Platform System ("OPS") including another US contract win through Golden Nugget to be delivered in early Q3.  These commitments include contracts with some of the world's largest operators, including: Nektan PLC, Full Tilt, Pala Interactive and several clients in the newly regulated Spanish market.  NextGen released 13 new games during the three-month period June 30, 2015 bringing the total of 26 new releases during the six months of 2015.  With the launch of 18 new clients and 26 new game releases during the first half of 2015, we saw the number of game instances across our distribution network grow by 58% from 5,454 in Q4 2014 to 8,628 in Q2 2015.

Our recently acquired subsidiary Game360 located in Italy is now distributing content via the NYX OGS platform. As a direct result, Game360 performed strongly during Q2 through the delivery of OGS content to 9 of its existing licensees, including SISAL and Cogetech. Game360 also signed an agreement with NetBet to deliver its Game360 Betting app.

As of June 30, 2015, our development pipeline remains strong as we held commitments with 28 customers that are being prepared for launch. These include 4 new customers integrating with NYX OPS Platform, 3 new NYX Poker customers and 20 OGS Platform customers plus an additional game bespoke development.

Revenue.  Revenue for the three months ended June 30, 2015 has grown to $10.7 million or 44.5% from $7.4 million for the three months ended June 30, 2014.  Royalty and License revenue was the main driver of growth as revenues increased $3.0 million for the three months ended June 30, 2015 to $8.9 million. 

Revenue for the six months ended June 30, 2015 has grown to $20.6 million or 66.1% from $12.4 million for the six months ended June 30, 2014.  Royalty and License revenue was the main driver of growth as revenues increased $8.2 million for the six months ended June 30, 2015 to $16.9 million.  The growth was attributable to the addition of new customers, growth from existing customers, and revenue from the acquisition of Ongame.

Gross Profit. Gross profit increased by $2.6 million and $7.1 million for the three and six months ended June 30, 2015 to $9.1 millionand $17.9 million, respectively.  Gross profit percentage was 85.0% and 86.5% for the three and six months ended June 30, 2015 compared to 87.6% and 86.6% for the comparable period in June 30, 2014.  The decrease was a result of decreases in social and professional services revenue during the period. 

Net Income (Loss). Basic and diluted earnings (loss) per share was $0.41 and $0.33 and $0.26 and $0.21 for the three and six-months ended June 30, 2015, respectively. Basic and diluted earnings (loss) per share was $0.06 and $0.06 and $0.02 and $0.02 for the three and six-months ended June 30, 2015, respectively.  The increase in earnings per share was the result of a $17.4 million dollar gain recognized with the buyout of our SNG joint venture partner.  Net income for the three and six-month period ended June 30, 2015 was $13.8 million and $8.8 million compared to $1.6 million and $0.5 million for the three and six-months ended June 30, 2014. The increase in net income was the result of a $17.4 million dollar gain recognized with the buyout of our SNG joint venture partner. 

Adjusted EBITDA.  Adjusted EBITDA was ($0.6) million and ($1.0) million for the three and six-months ended June 30, 2015 compared to Adjusted EBITDA of $3.0 million and $3.4 million for June 30, 2014, respectively.  The decrease for the three and six month period was the result of the Company's EBITDA negatively impacted by the continued losses from Ongame of $3.0 million and$5.7 million, respectively.  

Financial Position as of June 30, 2015

Cash and cash equivalents of $10.4 million
Total assets of $104.6 million
Total liabilities of $47.1 million
Total borrowings of $9.8 million net of the discount on the convertible debt
Total stockholders' equity of $57.5 million
2016 Full Year Financial Guidance
The following represents forward-looking information and user are cautioned that actual results may vary.
Total revenues of CAD $85 to $95 million
GBP/CAD – 2.07, as at close on August 24, 2015
EUR/CAD – 1.50, as at close on August 24, 2015
USD/CAD – 1.32, as at close on August 24, 2015
Includes the revenue guarantee from the licensing agreement with Pokerstars and Fulltilt of CAD $12.0 million per year
Potential revenue earned from additional acquisitions that may occur in 2016 is not included.
Total adjusted EBITDA[1] CAD $28 to $33 million
GBP/CAD – 2.07, as at close on August 24, 2015
EUR/CAD – 1.50, as at close on August 24, 2015
USD/CAD – 1.32, as at close on August 24, 2015
SEK/CAD - .16, as at close on August 24, 2015
AUD/CAD - .96 as at close on August 24, 2015
Includes the revenue guarantee from the licensing agreement with Pokerstars and Fulltilt of CAD $10.0 million per year [NTD:$12 million?]
Potential EBITDA from additional acquisitions that may occur in 2016 is not included.
EBITDA Guidance is based 15% growth on core business, Ongame being breakeven for 2016, full realization of cost synergies from the Cryptologic/Chartwell acquisition of $7.0 to $9.0, full realization of revenue synergies from the Cryptologic/Chartwell acquisition of $3 to $5 million, positive contribution from New Jersey and Italian businesses, and $10 million contribution from the Amaya revenue guarantee.



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