NYX Gaming Group Limited Reports Third Quarter Financial Results
Another Record Breaking Quarter – Q3 Revenue of $13.3 million up 111.6 % (63.5% Organic Growth)
LAS VEGAS, NV, Nov. 24, 2015 /CNW/ - NYX Gaming Group Limited (TSXV:NYX) ("NYX Gaming Group" or "Company") today announced its financial and operating results for the third quarter September 30, 2015. All amounts expressed are in Canadian dollars unless otherwise noted.
"I'm pleased to announce that Q3 marked another record breaking quarter for NYX and an important step in our multi-year plan to gain scale and relevance as a diversified high growth content and technology supplier to the gaming space. We saw excellent growth in revenue and gross profit and now boast the largest content portfolio combined with one of the broadest distribution bases in the industry with over 170 unique customers," said CEO Matt Davey.
Third Quarter Three Month 2015 Highlights
Financial Position as of September 30, 2015
- Revenue of $13.3 million 111.6% growth year-over year growth;
- Organic Revenue excluding acquisitions of $10.3 million or 63.5% year-over year growth;
- Royalty and License Revenue $11.5 million
- Gross Profit of $11.1 million;
- Adjusted EBITDA of $(1.4) million and $(2.4) million for the three and nine month periods;
- Basic and diluted earnings (loss) per share of $(0.14) and $(0.14) and $0.06 and $0.06 for the three and nine month periods;
- Signed six new OGS contracts, one NYX ("OPS"), and one poker client in the Italian Market
- 24 customers in development pipeline: five OPS, four Poker, 15 OGS
- Released 16 new games from our content studio
- Secured Board of Directors & Shareholder approval of the Normal Course Issuer Bid ("NCIB") to purchase up to 5% of NYX's common shares;
Q3 2015 Operating and Financial Results
During Q3 we launched our Open Gaming System ("OGS") content across eight new client sites including Mohegan Sun and Caesars in New Jersey. In addition to the launches in New Jersey, we launched an additional five clients, including Full Tilt, William Hill, Casino Di Venezia on OGS and Pokerstars.es on Chartwell Gaming System ("CGS"), in the regulated Italian market.
We also successfully integrated OGS into the Cryptologic/Chartwell distribution network allowing all of Cryptolgic/Chartwell's customers access to NYX's catalogue of award winning games and 23 clients, including Cherryföretagen, Intercasino (Intertain) and Betclic, took further casino content live.
As of September 30, 2015, our development pipeline remains strong as we held commitments with 24 customers that have not launched, these include five OPS, four Poker, and 15 OGS. On the content side, our content studio NextGen Gaming released 16 new games during the three month period ended September 30, 2015, bringing the total of 42 new releases during the nine months of 2015.
Summary of Results
| Three Months Ended |
Nine Months Ended |
|||||||||||
| In 000's except share data |
Sept 30, |
Sept 30, |
% |
Sept 30, |
Sept 30, |
% |
||||||
| Revenue |
$13,295 |
$6,283 |
111.6% |
$33,931 |
$18,709 |
81.4% |
||||||
| Gross Profit |
$11,100 |
$5,814 |
90.9% |
$28,959 |
$16,574 |
74.7% |
||||||
| Gross Margin % |
83.5% |
92.5% |
85.3% |
88.6% |
||||||||
| Adjusted EBITDA (1) |
$(1,407) |
$2,114 |
(166.5)% |
$(2,412) |
$5,525 |
(143.7)% |
||||||
| Net income (loss) |
$(6,499) |
$812 |
(900)% |
$2,335 |
$1,311 |
78.1% |
||||||
| Basic income (loss) per share |
$(0.14) |
$0.03 |
(566.7)% |
$0.06 |
$0.05 |
20% |
||||||
| Diluted income (loss) per share |
$(0.14) |
$0.03 |
(566.7)% |
$0.06 |
$0.04 |
50% |
||||||
| (1) |
Three and nine months Adjusted EBITDA excludes share-based compensation, derivative value adjustment, |
|||||
| Three Months Ended |
Nine Months Ended |
|||||||||||
| In 000's except share data |
Sept 30, |
Sept 30, |
% |
Sept 30, |
Sept 30, |
% |
||||||
| Adjusted EBITDA ex Ongame(1) |
$1,094 |
$2,114 |
(48.2)% |
$5,788 |
$5,525 |
6.6% |
||||||
| Adjusted Net income (loss)(2) |
$2,593 |
$812 |
219.3% |
$1,732 |
$1,311 |
32.1% |
||||||
| Adjusted Earnings (loss) per share basic(2) |
$0.04 |
$0.03 |
33.3% |
$0.07 |
$0.05 |
40.0% |
||||||
| Adjusted Earnings (loss) per share dilutive(2) |
$0.04 |
$0.03 |
33.3% |
$0.07 |
$0.04 |
75.0% |
||||||
| (1) |
Three and nine months Adjusted EBITDA ex Ongame is Adjusted EBITDA less losses related to Ongame of $2.5 and |
|||||
| (2) |
Three and nine months Adjusted Net income (loss) and Adjusted Earnings (loss) per share excludes Ongame losses |
|||||
Revenue.
Revenue for the three months ended September 30, 2015 has grown to $13.3 million or 111.6% from $6.3 million for the three months ended September 30, 2014. Royalty and License revenue was the main driver of growth in our business, as revenues increased $6.3 million for the three months ended September 30, 2015 versus September 30, 2014 to $11.5 million. Excluding acquisitions, organic revenue for the three months ended September 30, 2015 has grown to $10.3 million or 63.5% from $6.3 million for the three months ended September 30, 2014.
Revenue for the nine months ended September 30, 2015 has grown to $33.9 million or 81.4% from $18.7 million for the for the nine months ended September 30, 2014. Royalty and License revenue was the main driver of growth in our business as revenues increased $13.3 million for the nine months ended September 30, 2015 to $28.3 million versus September 30, 2014. Excluding acquisitions, organic revenue for the nine months ended September 30, 2015 has grown to $29.2 million or 56.1% from $18.7 million for the nine months ended September 30, 2014. Organic growth was attributable to new customers, growth of existing customers, and new game launches.
Gross Profit.
Gross profit increased by $5.3 million and $12.4 million for the three and nine months ended September 30, 2015 to $11.1 million and $29.0 million, respectively. Gross profit percentage was 83.5% and 85.3% for the three and nine months ended September 30, 2015 compared to at 92.5% and 88.6% for the comparable period in September 30, 2014. The increase in gross profit was a result of the increases in revenue and from recent acquisitions. The decrease in gross margins was the result of the revenue mix of branded versus non branded content and increase testing fees as we continue to expand into newly regulated markets such as Italy, Spain, and the United States.
Net Income and Earnings per Share.
Basic and diluted earnings (loss) per share was $(0.14) and $(0.14) and $0.06 and $0.06 for the three and nine months ended September 30, 2015, respectively. Basic and diluted earnings per share was $0.03 and $0.03 and $0.05 and $0.04 for the three and nine months ended September 30, 2014, respectively.
Our net profit (loss) for the three and nine month period ended September 30, 2015 was $(6.5) million and $2.3 million compared to $0.8 million and $1.3 million for the three and nine months ended September 30, 2014.
The loss for the period was the result of $6.6 million in acquisition and restructuring expenses and Ongame losses of $2.5 million for the three month period.
Adjusted EBITDA.
Adjusted EBITDA was $(1.4) million and $(2.4) million for the three and nine months ended September 30, 2015 compared to Adjusted EBITDA of $2.1 million and $5.5 million for September 30, 2014, respectively. During the quarter EBITDA was positively impacted by strong growth in revenues and negatively impacted by an increase in development cost and the full period of consolidating our New Jersey operations that was previously accounted for as a Joint Venture. Further, given substantial sales demand we made a strategic decision during the quarter to increase the game development capacity in our NextGen Gaming studio, which negatively impacted the operating results for the quarter. Ongame losses of $2.5 million and $8.2 million for the three and nine months ended September 30, 2015 continued to negatively impact operating results.
Financial Position as of September 30, 2015
- Cash and cash equivalents of $6.4 million
- Total assets of $285.8 million
- Total liabilities of $172.9 million
- Total borrowings of $112.4 million
- Total stockholders' equity of $112.9 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 six month period ended June 30, 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.
Third Quarter 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 third quarter of fiscal 2015 on Tuesday, November 24th at 8:30 a.m ET. The Company expects to report its financial results on Tuesday, November 24th 2015 at 7:00 a.m ET.
To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. 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 December 1, 2015 at 23:59 ET.
To access the rebroadcast, please dial 416-849-0833 or 1-855-859-2056 and enter the passcode 61847657, 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.
SOURCE NYX Gaming Group Ltd.
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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