Table-game specialist Galaxy Gaming‘s revenue increased 12% to $5.9 million, the Las Vegas-based company announced during its Q3 earnings call.
The year-on-year growth was modest. But Galaxy CFO Harry Hagerty considered it a win amid high-interest rates, a strengthening US dollar, and inflation.
“Exchange rates, interest rates and inflation rates worsened in Q3,” Hagerty said. “But despite the challenges, the company is performing well.”
Because Galaxy does business in multiple countries, the changing US dollar exchange rate affects its finances.
Q3 results are a mixed bag despite optimism
While Galaxy’s revenue was up compared to Q3 2021, its earnings before interest, tax, depreciation, and amortization dropped 5%. Cutting into the company’s earnings was an increased spend for professional services, Hagerty said.
The US gambling company had a “higher-than-normal level” of expenses, Hagerty said, for services related to strengthening the company’s financial services and intellectual property protection.
That being said, Galaxy decreased its long-term debt from $60.5 million to $59.6 million.
As for the future, Hagerty said the company adjusted its revenue forecast down to land somewhere in between a range of $22.5-$23.5 million.
CEO focuses on new products debuted at G2E
CEO Todd Cravens touched on some of the company’s revenue data but chose to emphasize Galaxy’s showing at the Las Vegas gaming convention G2E.
The company debuted several new games and technologies at the convention. Cravens said clients showed interest and some have committed to trialing the new products.
Those new products and trials are key for Galaxy. As a provider of table games, it needs new products it can generate revenue with.
The highlight of the new product line Galaxy showcased at G2E was Galaxy OS. It’s the company’s new table management system that offers a variety of features including real-time, tiered, linked, and dynamic progressive pots.
Galaxy makes big moves in 2022
The company’s mixed Q3 results come on the heels of a very active year.
Galaxy hired a new senior vice president for its worldwide sales department, and it appointed legal expert Meredith Brill to its board in July.
Additionally, the company launched Galaxy Gaming Digital. The new division signaled Galaxy’s desire to create in-house content for its table-games empire.
Cravens said in a statement:
“We see tremendous opportunity for growth and innovation by taking an active role in creating our own new content and continuing to work closely with our industry-leading development partners. Along with that, this new division will also be focused on channel expansion, bringing Galaxy titles to new online outlets.”