Tuesday August 30,2016 : OPENBET ACQUISITION BOOSTS NYX GAMING H1-2016 PERFORMANCE
Revenues soar in a strong first half, but acquisition costs weigh on profits.
Online gambling software and games developer and platform provider NYX Gaming released its Q2-2016 and H1-2016 results Monday, highlighting the following performances:
* Q2 revenue up 230 percent year-on-year to C$35.2 million;
* H1 revenue up 165.9 percent y-o-y at C$54.9 million, with management attributing much of the growth to the GBP270 million acquisition of the Openbet group.
* Organic revenue in Q2 up 28 percent at C$13.7 million, with royalty and licence revenue for the period totalled C$20.8 million.
* Q2 gross profit up 238.3 percent y-o-y at C$30.8 million; with margin up 2.3 points on the preceding year at 87.3 percent;
* H1 gross profit up 163.2 percent y-o-y at C$47 million, with margin slightly lower at 85.7 (H1-2015: 86.5 percent).
* Q2 adjusted EBITDA increased 313.2 percent year-on-year to C$10.5 million.
* H1 adjusted EBITDA up 224.6 percent to C$15.3 million;
* However, the high cost of acquiring Openbet weighed on profits, with Q2-2016 generating net C$29 million compared to net profit of C$13.9 million reported in Q2-2015.
* H1-2016 net loss was C$38.2 million, down from net profit of C$8.8 million during H1-2015;
* 11 new OGS and OPS partnerships signed during the half-year, along with the launch of 21 new clients.
Its been a busy year for NYX with the acquisition of Openbet GBP 270 million) and games developer Betdigital (GBP24.5 million)
CEO Matt Davey said in his report that the company would now focus on integrating and improving its acquisitions, which have boosted group performance and diversity significantly.