Cosmic Gaming, a supplier of casino table games and systems, has increased its full-year income projections for the fiscal year 2023 after establishing a new quarterly record in the second quarter.
Income and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) both hit new quarterly peaks in the six months ending June 30. Income reached $7.5 million (£5.9 million/€6.9 million), a 32.6% increase year-on-year.
The firm stated that the rise was fueled by its land-based and online gaming operations. Cosmic Gaming also noted growth in its core Americas business as well as in Europe, the Middle East, and Africa.
Furthermore, CEO and President Todd Cravens highlighted several significant new agreements reached in the second quarter. He stated that these agreements will support further expansion in the third quarter and beyond, and Cosmic Gaming raised its full-year outlook to reflect these expectations.
“The importance of the second quarter goes beyond the figures,” Cravens remarked. “We announced a 10-year agreement with Evolution, solidifying our relationship with our largest client and extending it into the future.
“We also announced that we will be the exclusive distributor of EZ Baccarat in the US, Canada, the UK, and online markets starting in September, an opportunity we believe could generate millions of dollars in new income.”
Toward the conclusion of the fiscal quarter, we witnessed the initial deployments of our GOS system in the United States and the United Kingdom, and we are quite satisfied with the outcomes.”
Galaxy’s terrestrial and digital enterprises exhibit growth.
Galaxy’s land-based operations remain its primary revenue generator, with the GG Core division producing $5.3 million in revenue. This signifies a 43.1% surge in comparison to the preceding year, primarily attributed to the delivery of perpetual gaming systems to a solitary client.
The vendor also emphasized that its GG Digital division, which caters to the iGaming sector, also experienced expansion. The division’s revenue climbed by 12.4% annually to $2.2 million.
Galaxy attributed the growth of GG Digital to an increase in clientele within its traditional markets and its foray into novel territories.
In terms of regional performance, revenue in the Americas expanded by 58.1% to $4.9 million. Regarding the Europe, Middle East, and Africa (EMEA) region, revenue in the second quarter rose by 3.9% to $2.7 million.
Net profit experiences a rebound in the second quarter.
In terms of expenditures and operational expenses, expenses and operational costs in the second quarter increased by 8.5% to $5.1 million, while net other costs (primarily interest expense) amounted to $2.1 million. Consequently, pre-tax profit reached $373,446, in contrast to a loss of $920,664 during the same period last year.
Galaxy paid $16,677 in income tax and recorded a negative foreign currency translation adjustment of $25,280. This resulted in a net profit of $331,489, compared to a loss of $1.2 million in the second quarter of 2022.
Furthermore, adjusted EBITDA increased by 33.3% year-over-year to $3.2 million.
Galaxy’s expansion persists throughout the initial half of the year.
The celestial body known as Galaxy had a strong performance in the initial six months of the year concluding on June 30th. Similar to the second three-month period, income grew by 28.9% to $14.9 million, with both land-based and online betting operations demonstrating progress.
GG’s core land-based business observed revenue increase by 39.1% to $10.5 million, while GG’s digital online betting revenue expanded by 9.9% to $4.4 million. Geographically, income in the Americas expanded by 52.5% to $9.3 million, while income in Europe, the Middle East, and Africa grew by 1.8% to $5.6 million.
Operational expenditures rose by 12.1% to $10.2 million, with net other costs at $4.2 million. This resulted in a profit before taxes of $489,715, in contrast to a loss of $1.1 million in the same period last year.
Total income tax paid was $22,252, with a foreign exchange rate adjustment of negative $8,643. As a consequence, net profit for the first half of the year was $458,820, compared to a loss of $1.3 million in the same period of 2023.
Galaxy also noted that adjusted EBITDA increased by 26.0% to $6.3 million.
Full-Year Outlook Upgraded
Based on the performance in the second three-month period and initial six months of the year, Galaxy has upgraded its income outlook. For the 12 months concluding on December 31, 2023, income is expected to be between $29 million and $30 million. This is higher than the initial estimate of $27.5 million to $28.5 million.
Galaxy also stated that adjusted EBITDA is expected to be at the higher end of the previously announced guidance range of $13 million to $13.3 million.
“It’s been a busy six months for us, and I want to publicly thank all Galaxy employees for their loyalty and dedication,” said Craven.
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