NYX Gaming Group Limited Reports Fourth Quarter and 2015 Fiscal Year Financial Results
Announces Another Strong Quarter and Fiscal Year– Q4 Revenue of $18.4 million, up 114.5% (36.9% Organic Growth)
LAS VEGAS, NV, April 27, 2016 /CNW/ - NYX Gaming Group Limited (TSXV:NYX) ("NYX Gaming Group" or "Company") today announced its financial and operating results for the fourth quarter and fiscal year ended December 31, 2015. All amounts expressed are in Canadian dollars unless otherwise noted.
"I am pleased to announce that 2015 was another outstanding and remarkable year for NYX. We achieved growth in both revenue and gross profit. Our ongoing performance is a reflection of our ability to deliver content and technology services that meet the demands of the digital gaming industry. The momentum we gained from executing a robust strategy highlights our continued commitment to delivering long-term shareholder value," said CEO Matt Davey.
Fourth Quarter 2015 Highlights
Financial Position as of December 31, 2015
- Revenue of $18.4 million or 114.5% growth year-over-year growth;
- Organic Revenue excluding acquisitions of $11.7 million or 36.9% year-over-year growth;
- Royalty and License Revenue of $15.8 million;
- Gross Profit of $15.8 million;
- Adjusted EBITDA of $1.6 million and $(0.8) million for the three and twelve month periods;
- Signed 18 new OGS contracts, one NYX OPS and signed deals for Sportsbook (IT) and Mobile (bespoke) games from Game360;
- Launched our OGS content across 10 new client sites; and
- Released 19 new games
Fourth Quarter Operating and Financial Results
During Q4, we saw consistent growing demand for our Open Gaming System ("OGS") and Open Platform System ("OPS"). We signed 18 new deals for OGS and one deal with the Dutch National Lottery for OPS.
In addition, we launched our OGS across 10 new client sites, including 888 and William Hill. We also went live with OPS and OGS with Golden Nugget in New Jersey and as a result, NYX's gaming content has been deployed by the majority of operators in that market.
To note, NYX currently has over 170 customers, including Bet365, William Hill, Paddy Power, Betfair, Caesars, MGM, Golden Nugget, and regulated market leaders across every major continent.
On the content side, NYX has remained committed to developing cutting edge products and services for some of largest gaming operators across the world. In Q4, our NextGen studio released 19 new games, bringing the total to 61 new releases for fiscal year 2015.
In Q4, NYX also successfully completed the purchase of Side City Development. The acquisition provides NYX with a studio that produces casino gaming content catering to the North American brick-and-mortar clientele.
On April 4, 2016, NYX made the strategic decision to sell Ongame, the Company's European Poker Business. The purchaser will take on all costs, customer contracts and development for the poker product. NYX will retain both a share of the new business and will also retain exclusive rights to use the product across North America.
On April 4, 2016, NYX also announced the acquisition of OpenBet, the #1 regulated sports betting supplier globally. NYX will acquire 100% of the issued and outstanding shares of OpenBet for a total consideration of £270.0 ($491.0) million, pursuant to the share purchase agreement.
Summary of Results
| Three Months Ended |
Twelve Months Ended |
|||||||||||
| In 000's except share data |
Dec 31, |
Dec 31, |
% |
Dec 31, |
Dec 31, |
% |
||||||
| Revenue |
$18,377 |
$8,569 |
114.5% |
$52,309 |
$27,278 |
91.8% |
||||||
| Gross Profit |
$15,838 |
$7,508 |
111.0% |
$44,798 |
$24,082 |
86.0% |
||||||
| Gross Margin % |
86.2% |
87.6% |
85.6% |
88.3% |
||||||||
| Adjusted EBITDA(1) |
$1,640 |
$567 |
189.4% |
$(773) |
$6,092 |
(112.7)% |
||||||
| Net Loss |
$(10,739) |
$(8,317) |
29.1% |
$(8,403) |
$(7,006) |
19.9% |
||||||
| Basic Loss Per Share |
$(0.21) |
$(0.30) |
(30.0)% |
$(0.20) |
$(0.25) |
(20.0)% |
||||||
| Diluted Loss Per Share |
$(0.21) |
$(0.30) |
(30.0)% |
$(0.20) |
$(0.25) |
(20.0)% |
||||||
| (1) |
Three and twelve months Adjusted EBITDA excludes share-based compensation, derivative value |
|||||
Revenue
Revenue for the three months ended December 31, 2015 grew to $18.4 million, or 114.5%, from $8.6 million for the three months ended December 31, 2014. Royalty and License revenue was the main driver of growth, as we launched new customers and released 61 game titles throughout the year, causing revenue to increase $8.3 million for the three months ended December 31, 2015 to $15.8 million versus December 31, 2014. Excluding acquisitions, organic revenue for the three months ended December 31, 2015 grew to $11.7 million, or 36.9%, from $8.6 million for the three months ended December 31, 2014.
Revenue for the twelve months ended December 31, 2015 increased to $52.3 million, or 91.8%, from $27.3 million for the twelve months ended December 31, 2014. Royalty and License revenue was the main driver of growth due to new customer launches and game releases, as revenue increased $21.6 million for the twelve months ended December 31, 2015 to $44.2 million versus December 31, 2014. Excluding acquisitions, organic revenue for the twelve months ended December 31, 2015 increased to $40.2 million, or 50.1%, from $26.8 million for the twelve months ended December 31, 2014. Organic growth was attributable to new customers, growth of existing customers, and new game launches.
Gross Profit
Gross profit increased by $8.3 million and $20.7 million for the three and twelve months ended December 31, 2015 to $15.8 million and $44.8 million, respectively. Gross profit margins were 86.2% and 85.6% for the three and twelve months ended December 31, 2015 compared to 87.6% and 88.3% for the comparable periods in December 31, 2014. The increase in gross profit was a result of the increases in revenue from the underlying core casino business and the impact from acquisitions. The decrease in gross margins was the result of the revenue mix of branded versus non-branded content and the increase in revenue generated from third-party game suppliers.
Net Income and Earnings per Share
Basic and diluted loss per share was $(0.21) and $(0.21) and $(0.20) and $(0.20) for the three and twelve months ended December 31, 2015, respectively. Basic and diluted loss per share was $(0.30) and $(0.30) and $(0.25) and $(0.25) for the three and twelve months ended December 31, 2014.
Our net loss for the three and twelve month period ended December 31, 2015 was $(10.7) million and $(8.4) million compared to $(8.3) million and $(7.0) million for the three and twelve months ended December 31, 2014.
The loss for the period was primarily the result of $1.2 and $9.8 million, $2.7 and $5.1 million, and $2.9 and $11.1 million in acquisition/restructuring charges, finance expense, and Ongame losses for the three and twelve month period ended December 31, 2015. This was offset by a $17.4 million gain from the acquisition of the Sportech joint venture.
Adjusted EBITDA
Adjusted EBITDA was $1.6 million and $(0.8) million for the three and twelve months ended December 31, 2015 compared to Adjusted EBITDA of $0.6 million and $6.1 million for December 31, 2014, respectively. During the fourth quarter, EBITDA was positively impacted by strong growth in revenues and reduced losses from the Cryptologic and Chartwell acquisition as we realized the benefits from our restructuring efforts. Ongame losses of $2.9 million and $11.1 million for the three and twelve months ended December 31, 2015 continue to negatively impact operating results.
Financial Position as of December 31, 2015
- Cash of $9.7 million
- Total assets of $291.8 million
- Total liabilities of $157.1 million
- Total borrowings of $69.4 million
- Total stockholders' equity of $134.7 million
Financial Statements and Management's Discussion and Analysis
NYX Gaming Group's audited consolidated financial statements, notes thereto and Management's Discussion and Analysis for the three and twelve month period ended December 31, 2015 will be available on SEDAR at www.sedar.com. Additional information relating to NYX Gaming Group and its business may also be found on SEDAR at www.sedar.com and the Company's website www.nyxgaminggroup.com.
Fourth Quarter and Fiscal 2015 Conference Call Details NYX Gaming Group Ltd. (TSXV: NYX) ("NYX Gaming Group") is pleased to announce that it will hold a conference call to discuss its financial results for the fourth quarter of fiscal 2015 on Wednesday, April 27 at 8:30 am ET. The Company expects to report its financial results on Wednesday, April 27, 2015 at 7:00 am ET. To access the conference call by telephone, dial (888) 231-8191 or (647) 427-7450. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. A question and answer session for analysts will follow management's presentation. A taped rebroadcast will be available to listeners until May 4, 2016 at 23:59 ET. To access the rebroadcast, please dial +1 (855) 859-2056 and enter the passcode 92964711, followed by the number sign.
About NYX Gaming Group Limited
NYX Gaming Group Limited is a leading digital gaming supplier headquartered in Las Vegas with a staff of more than 350 employees based in 8 countries across Europe, North America and Australia. It provides one of the world's largest portfolios of market leading content and technology to some of the largest gaming operators, lotteries and casinos across the globe. NYX also has one of the broadest distribution bases in the gaming industry with over 170 unique customers and a collective game catalogue of over 650 games. The market leading game catalogue includes slots, table games, scratch cards, lottery, bingo and poker available across web and mobile formats. NYX Gaming Group Limited is a proud recipient of the Special Achievement Award from EGR, which recognized the group's consistent growth and innovation in multiple e-gaming verticals.
NYX Gaming Group Limited is listed on the TSX Venture Exchange under the symbol (TSXV: NYX).
Disclaimer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is definite in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements and Non-IFRS Financial Measures
Certain statements included herein, including those that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "potential" or the negative of these terms or other similar expressions. Forward-looking statements are based on certain assumptions regarding the Company's expected growth, results of operations, performance, industry trends and growth opportunities. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to: credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates, the impact of government regulation on the on-line gaming industry and the risk that such regulation is subject to change, competition from other providers of online gaming services, the possibility that the Company be unable to successfully integrate the B2B Business as described herein, the risks associated with international and foreign operations, the impact of consolidations in the online gaming industry and the other risks identified under the heading "Risk Factors" in the Company's final long form prospectus dated December 18, 2014, as filed on SEDAR at www.sedar.com, and in other filings that NYX Gaming Group may make with applicable securities authorities in the future. The forward-looking statements contained herein reflect NYX Gaming Group's current views with respect to future events, and except as required by law, NYX Gaming Group does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events, or otherwise.
This release contains Non-IFRS financial measures and are noted where used. These financial measures are used by many investors to compare companies and management believes they are important measures in evaluating NYX Gaming Group. However, they are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Therefore, they may not be comparable to similar measures presented by other issuers. Investors are cautioned that such measures should not be construed as alternatives to comparable IFRS measures determined in accordance with IFRS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
NYX Gaming Group Limited is listed on the TSX Venture Exchange under the symbol (NYX.V).
SOURCE NYX Gaming Group Limited
Matt Davey, Chief Executive Officer, NYX Gaming Group Limited, 1-702-586-8428; Joann Head, Investor Relations, (702) 586-5711, [email protected]
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