Galaxy reveals mixed results in first quarter
Galaxy Gaming has posted year-on-year revenue growth during the three months to March 31, 2017, despite suffering losses across other key financial metrics.
Revenue in the first quarter came in at $3.5 million (€4.1 million), up 16% on the amount generated in the corresponding period last year.
However, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 2% year-on-year to $1.2 million.
Pre-tax income fell 64% to $240,000, while net income was also down by 62% to $162,000.
Robert Saucier, chief executive of Galaxy, was mainly positive about the firm’s performance in the first quarter, citing the positive impact of recent investments.
“Our top line continues to show solid growth from the recent investments we have made in our business,” Saucier said.
“In the first half of 2017, we are continuing to make those investments and at an accelerated rate.
“In the short term, those investments will negatively affect our profits; however, we have never been interested in short-term results and instead we believe these investments are necessary to sustain our longer-term growth objectives.”
Galaxy noted that it has compared the Q1 2017 results with the restated figures for the same period last year.
Last month, Galaxy said its financial statements for 2015 would be restated due to a number of issues.
The first issue pertained to the amortisation of original issue discount related to the Prime Table Games’ 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.
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