The news is not good for Galaxy Gaming for Q1. Not unexpectedly, the revenue for the table games supplier dropped almost sixteen percent for this time period. Of course, it is due to the closure of land-based casinos during the pandemic which suspended most business.
Galaxy took in 4.5m, down from $5.3m during the first quarter of 2019. It did see the normal gaming revenue from physical casino customers.
However, online customers through its official distributor remained operational during the quarter, allowing for some degree of profit.
Looking at the numbers
Galaxy did report revenue from various geographic areas. For example, that from North America and the Caribbean topped $3.1m in Q1, although down 18.4% from 2019. Europe, Middle East and Africa revenue was also lower by 9.3% from $1.5m to $1.4m.
According to President and CEO, Todd Cravens, the industry experienced unprecedented disruption beginning in mid-March.
“During this time, our focus was on the health and safety of our team who, while working remotely, went above and beyond to assist each other and our clients in working through these new challenges and constraints.”
Cravens has expressed pleasure that online gaming continues to perform well during the shutdown, and he expect this business line to increase in importance.
Of course, spending for the quarter also fell for bonuses, commissions and compensation, research and development, distributor fees and royalties as well as depreciation and amortization.
It all amounted to lower revenue and spending. Thus income from operations for the quarter reached $697,400, lower by 3.0% from the $718,642 earned last year.
For a full picture, mention must be made of $544,833 in other costs, including interest expense and foreign currency exchange loss.
Profit before tax came to $152,567, a considerable dip of 72.8%. After remitting $35,962 in income tax, Galaxy ended Q1 with a net profit of $116,605. At the end of this time in 2019, it was a much stronger $460,664.
According to Galaxy CFO, Harry Hagerty,
“We drew down the full $1m available on our revolving line of credit to supplement those balances. allowing us to keep the team intact and meet our financial obligations during the shutdown.”