Galaxy Gaming has revealed a significant increase in revenue as the firm praised a high demand for games during the expansion of its portfolio.
Net revenue for the firm rose by 13 per cent to $6,737K in Q4 2023 and 19 per cent to $27,789K for the overall period of 2023.
The results were largely fuelled by a positive final quarterly period, in which the company managed to boost operating costs.
Furthermore, the group also detailed a belief that ‘the opportunistic sales of perpetual licences peaked in 2023’, as the company holds ambitions that the industry is entering a sustainable growth model relying principally on recurring revenue generated from core and innovative products.
Matt Reback, President and CEO, stated: “We saw gross revenue increases of 25 per cent and 23 per cent in the quarter and the year, respectively, and our gross revenue in Q4 of 2023 was a record at $8.4m.
“We had a full quarter of licence revenue from EZ Baccarat® in the fourth quarter. However, we were not able to complete the entire installation backlog of our EZ Baccarat Trend Displays, on which we pay no royalties, until February of 2024. We expect these displays will help grow revenue on both a gross and net basis in 2024.
Looking at how the firm’s offering and strategy has evolved, Harry Hagerty, Galaxy’s CFO, added: “With the addition of EZ Baccarat, revenues in our Core vertical now have a contra-revenue component as our Digital vertical has had. “To provide additional information to our investors, we will now be disclosing revenue on a gross and net basis in both verticals, and we will also break out sales of perpetual licences when they occur.
“We incurred some higher-than-planned shipping expenses in Q4 as we expedited the installation of EZ Baccarat displays. Intellectual property registration expenses also continued to be higher than historical levels as we expanded the reach of our products into global markets.”
He also revealed that the group’s cash position increased to $16.7 million at the end of Q4 as compared to $15.9m at the end of Q3.
Hagerty continued: “Our loan from Fortress Credit Corp. requires our net leverage not to exceed x6.0 at any of the quarter-ends in 2023, and at the end of Q4 we were at x3.7, comfortably in compliance. The net leverage covenant steps down to x5.0 in 2024. It remains our intention to reduce our net leverage and to pursue refinancing opportunities.”