Galaxy Gaming Reports Record Earnings in 2021

Cosmic Entertainment revealed its 2021 annual financial outcomes, reporting overall earnings of $19.9 million (£415.1 million/€17.9 million) for the period ending December 31, including record online gaming earnings.

The company’s earnings rose by 95.3% compared to 2020, which was affected by the pandemic and saw earnings of $10.2 million.

Operating earnings from North America and the Caribbean were $10 million, while Europe, the Middle East, and Africa generated $9.9 million.

Online gaming earnings accounted for $8.1 million of the total.

Costs for the year amounted to $15.6 million, up 25.2% from 2020. Sales, general, and administrative costs accounted for $10.6 million, an increase of 18.7%. Depreciation and amortization costs came in second at $2.8 million, up 28.6% year-over-year.

The remaining $2.1 million included the cost of auxiliary products, research and development costs, and stock-based compensation.

After subtracting costs, total operating profit was $4.3 million, a $6.6 million increase compared to the previous year, which saw a loss of $2.2 million.

Other costs primarily included $1.5 million in interest expense, totaling $2.1 million.

This resulted in a pre-tax profit of $2.1 million, an increase of $4.9 million from 2020, when the company reported a loss of $2.8 million.

Following the subtraction of $48,637 in income tax and $184,884 in foreign currency translation adjustments, the net profit for the period was $1.9 million, a rise of $4 million from the corresponding period in the previous year.

Galaxy’s revenue in the last quarter was $5.6 million, a rise of 73% from the same period a year ago. Of this, online gaming revenue was $2.1 million.

Net income was $598,000, nearly half of what it was in the same period last year, even though revenue in the fourth quarter of 2020 was significantly boosted by government-provided loan forgiveness associated with the COVID-19 pandemic.

Galaxy Gaming President and CEO Todd Cravens expressed gratitude for the company’s performance in the final quarter during the COVID-19 pandemic.

Cravens stated, “We concluded 2021 on a positive note. While some of our clients’ properties are still affected by COVID-19, our total fourth-quarter revenue was a record $6.1 million.

“Our online gaming business performed exceptionally well, with total online gaming revenue for 2021 reaching a record $8.1 million. We believe that as the impact of COVID-19 on our clients continues to diminish, we will witness a strong recovery in GG’s core business (felt and electronics), as well as continued expansion in our online gaming business.”

Looking ahead to 2022, the company’s Chief Financial Officer, Harry Haggarty, anticipates growth across the board.

Haggarty stated, “We are in a solid financial position. We have a substantial amount of cash on hand and a low level of debt maturing this year.”

The company anticipates its earnings (excluding online gaming royalties) to be within a range of $23.5 million to $25 million for the financial year 2022. They project an adjusted EBITDA between $11.5 million and $12.5 million.

Mark Lipparelli, the head of Galaxy’s board, also spoke about the company’s settlement payment to Triangle Partners and its previous chairman and chief executive officer, Robert Sosi.

The settlement was reached after Triangle filed a lawsuit against Galaxy, alleging that Galaxy attempted to pressure Triangle to sell its shares due to regulatory disputes.

“We successfully managed the Sosi legal proceedings and related restructuring, despite a difficult customer operating environment, including some customers who have completely ceased operations,” Lipparelli stated.