Galaxy claims revenue growth despite losses in Q3
Galaxy Gaming has reported year-on-year revenue growth for the third quarter, despite also posting both net and pre-tax losses.
Revenue in the three months to September 30 amounted to $3.8m (€3.2m), up 20% on the restated figures from the corresponding period last year.
Galaxy said this year-over-year revenue growth represents the highest quarterly revenue growth reported so far in 2017.
However, despite an increase in revenue, Galaxy saw adjusted earnings before interest, tax, depreciation and amortisation dropped 16% year-on-year to $1.3m.
In addition, pre-tax loss came in at $6,000, compared to income of just over $1m last year, while net loss amounted to $28,000 against an income of $662,000 in Q3 of 2016.
Todd Cravens, president and chief executive of Galaxy, said: “As has been the case for several quarters, we have been adding staff and other resources to support this growth and our future aspirations.
“One of the benefits of these investments was realised in September when we received a higher level of licensing from the Nevada Gaming Commission.
“This licensure allows us to broaden our sales activities in Nevada and gives us a roadmap to pursue licenses in other jurisdictions.
“We will continue to make investments for as long as we believe that they will produce similar benefits and long-term growth.”
As previously reported, Galaxy in April detailed on Form 8-K that its financial statements for 2015 and for three quarters of 2016 would be restated due to two issues.
The first issue pertained to the amortisation of original issue discount related to the Prime Table Games’ (PTG) promissory note, which had not previously been deducted on the company’s income tax returns in any period since the note was issued in October 2011.
The second issue also related to the PTG note, as the related foreign currency transaction gains and losses were incorrectly reported as other comprehensive income, rather than earnings.