Although Galaxy Games observed an increase in earnings in 2023, it still encountered a financial deficit.
Galaxy Games continued to operate at a financial disadvantage in the 2023 fiscal year, despite a 18.8% rise in group earnings to $27.8 million (£22 million/€25.7 million).
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Despite witnessing a rise in earnings in 2023, Galaxy Games still reported a net loss.
Both land-based and digital ventures saw an increase in earnings in 2023. However, due to escalating costs across numerous areas, Galaxy Games once again experienced a net loss.
Chief Executive Officer and President Matt Reback was generally satisfied with the mixed outcomes. Reback joined Galaxy in November, replacing Todd Cravens who had overseen the business since mid-2017.
In examining the outcomes, Reback emphasized earnings growth as a positive for Galaxy. He also conveyed optimism about the company’s future potential.
“We believe that the opportunistic sale of perpetual licenses reached its peak in 2023,” Reback stated. “We will revert to a sustainable growth model, primarily driven by recurring earnings generated by our robust core and premium felt product portfolio, emerging GOS product line, and our igaming business in 2024.
“I’ve been with Galaxy for four and a half months now, and I’m very optimistic about the company’s future potential.
Galaxy is concentrating on attaining a two-digit rise in revenue over the next few years through natural expansion and possible takeovers. Their land-based operations are driving this expansion.
In 2023, their land-based ventures produced the most income, rising by 25.7% to $19.3 million. This increase is attributed to a substantial rise in perpetual license sales, which skyrocketed by 1226.5% to $3.7 million. New distribution agreements also contributed to the growth.
While their digital business also experienced growth, it was at a slower pace than the land-based business. Revenue increased by 4.8% to $8.4 million, fueled by growth in established markets and expansion into new markets.
The Americas generated the most income, reaching $17 million, a 34.9% increase. Revenue from Europe, the Middle East, and Africa decreased slightly by 0.9% to $10.8 million.
Despite the revenue increase, higher spending affected profits. Operating expenses climbed by 21.3% to $21.1 million, primarily due to a substantial increase in sales, general, and administrative expenses.
Operating profit rose by 9.8% to $6.7 million. However, higher net financial expenses resulted in a net loss for the year.
Galaxys financial performance for the period resulted in a $5 million deficit, leading to a pre-tax loss of $1.7 million, a slight increase from the $1.6 million loss experienced during the same period last year.
The enterprise paid $79,228 in taxes, but benefited from a positive currency exchange adjustment of $51,612. This resulted in a net loss of $1.8 million for the year, a figure that remained consistent with the previous year.
However, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) showed a modest increase of 1.0%, reaching $10.6 million.
The final quarter followed a similar pattern. Galaxy provided limited data for the three-month period, including a 6.4% rise in net income to $6.7 million.
GG’s core revenue experienced an 18.0% increase to $4.6 million, while GG’s digital revenue saw a 12.5% decrease to $2.1 million.
The group reported a net loss of $820,000 for the quarter, a contrast to the $55,000 profit recorded in 2022. Adjusted EBITDA also experienced a 10.0% decline to $280 million.
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