Online gambling technology supplier NYX Gaming Group acquisition of sports betting technology supplier Openbet is proving to be a good decision – if the sole basis is the first half of 2016 revenue results alone.
In a statement, NYX announced that its Jan-June 2016 revenue surged by 165.9 percent to C$54.9 million (US$42.1 million) compared to the first half revenue of 2015. The Canada-listed firm attributed the stellar performance of its company to the £270 million (US$353.05 million) acquisition of OpenBet.
On the other hand, Gross profit for the six months ended June 30, 2016 spiked by 163.2 percent to reach C$47 million (US$36.04 million). Gross margin stood at 85.7 percent compared to 86.5 percent reported for the same period of 2015.
Adjusted EBITDA for this year’s first six months totaled C$15.3 million (US$ 11.73 million), up 224.6 percent year-on-year.
“With the closing of the OpenBet acquisition, we move our focus from acquisitions to integration of our business operations and delivery of operational leverage. We look forward to continuing to strengthen our business model and create reoccurring, sustainable revenue over the long-term across all products for the benefit of our customers and shareholders,” Matt Davey, Chief Executive Officer of NYX, said.
Meanwhile, NYX saw a strong second quarter finish with its April-June 2016 revenue surging by 230 percent to C$35.2 million (US$26.99 million). Excluding transactions, NYX said that its organic revenue rose by 28 percent to C$13.7 million (US$10.5 million) for the three months ended June 30, 2016. Royalty and license revenue for the period totaled C$20.8 million (US$ 15.95 million).
The company reported quarterly gross profit of C$30.8 million (US$23.62million), up 238.3 percent year-on-year. Gross margin for the period in review stood at 87.3 percent compared to gross margin of 85 percent posted for the same three months of the previous year. Quarterly adjusted EBITDA increased 313.2 percent year-on-year to C$10.5 million (US$8.05 million).
According to NYX, the company saw a strong demand in both of its Open Gaming System (“OGS”) and our Open Platform System (“OPS”) in the second quarter of 2016. The firm announced that it signed new agreements with Sisal, Pala Interactive, Rush Street Gaming, Starcasino, Solverde, and Luckia.
OGS was also successfully launched across 21 new client sites: Mybet, Rush Street Gaming, Sisal, and SNAI. In addition, NYX content studios released eight new games during the three months ended June 30, 2016.
Despite the demand of its products, NYX reported a C$29 million (US$ 22.24 million) net loss in the April-June 2016 period compared to the reported C$13.9 million (US$10.66 million) net profit for the same period of the previous year. Net loss for the first half of the year amounted to C$38.2 million (US$ 29.29 million), down from net profit of C$8.8 million (US$6.75 million) during the same six months of 2015.