Galaxy Gaming has reported revenue of $5.7m for the second quarter of 2022, a 20% increase from the prior-year period.
Adjusted EBITDA climbed by 10% to $2.4m, compared to $2.1m in the prior-year quarter.
The company also published its financial results for the six months ended 30 June 2022, reporting a 28% year-on-year increase in revenue to $11.6m. Adjusted EBITDA increased by 31% year-on-year to $5m.
For Q2 2022, net loss was $1.1m versus net income of $550,000, while for H1 2022, net loss was $1.1m versus net income of $639,000.
“The second quarter of 2022 was a perfect storm of rates - foreign exchange rates, inflation rates and interest rates,” said Galaxy Gaming CFO Harry Hagerty. “The appreciation of the US Dollar against the Euro and the British Pound cost us $190K in revenue in the quarter (as compared to what we would have realised using the rates that applied in Q2 2021).
“We have seen very little benefit from the new rates on the expense side, as most of our expenses are denominated in dollars. The increase in inflation has affected us as we have seen significant increases in travel expenses and are having to offer increased salaries and wages to hire new employees and to retain existing ones.
“Finally, the floating interest rate on which our long-term debt is based has risen by 116 basis points from January to July.”
Galaxy also noted a handful of balance sheet changes versus 31 December 2021, with cash increasing by 7% to $17.3m, and total long-term debt decreasing from $60.5m to $59.9m.
Galaxy Gaming President and CEO Todd Cravens commented: “The external conditions that Harry described masked what was an excellent quarter and first half.
“On a constant currency basis, revenue increased by 24% in the quarter and 32% in the first half as compared to the same periods in 2021. And we have some exciting things happening in the second half. In Galaxy Core (our land-based business), one of our high-end UK customers will launch the first three-meter progressive, with a top side bet of £100 – the first in the world.”
Cravens added: ‘I’m excited about the fundamentals of our business and am confident we’ll manage through the wider macroeconomic issues. We focus on the things we can control.”