BUSINESS

NYX Gaming Group revenue spikes following acquisitions

TAGs: nyx gaming group, openbet

nyx-gaming-revenue-spikesToronto-listed gambling technology provider NYX Gaming Group enjoyed a healthy bump in its Q3 figures following its OpenBet acquisition.

Figures released Tuesday show NYX revenue quadrupling to C$54.3m in the three months ending September 30 while net income totaled C$41.3m, a dramatic turnaround from the C$6.5m loss in the same period last year.

The noticeable positive swing came courtesy of NYX’s acquisition this spring of sports betting technology provider OpenBet, as well as a full quarter’s contributions from software suppliers Chartwell and Cryptologic, which NYX acquired at the end of July 2015.

Royalty and license revenue rose 131% to $26.5m, professional services revenue improved to $24.3m from just $400k in Q3 2015, and social gaming revenue more than doubled to $3.1m. However, in keeping with the adage that with great power comes great responsibility, administrative and personnel expenses tripled to $33.8m.

The acquisition of OpenBet and NYX’s May 2016 deal to acquire UK gaming content and platform supplier Betdigital was reflected in NYX’s geographical revenue split, as the Americas and the Caribbean category was basically flat at $3m while the UK and Europe column more than quintupled to $51.3m. The Australasia category reported nil revenue in Q3, down from $167k last year.

Q3 was an active period for NYX, signing seven new agreements for its Open Gaming System (OGS) and Open Gaming Platform, while launching OGS content across eight new client sites. NYX finished the quarter with 23 client commitments that have yet to launch. NYX also released 18 new games in Q3 and its number of unique game installations grew 18.6% during the quarter.

Since the quarter ended, NYX has inked 10 new deals and launched four new clients. Among these new deals is Baltic gaming operator Olympic Entertainment Group, which signed a long-term license agreement with NYX last week to accelerate the company’s ongoing expansion into the digital realm from its land-based casino roots.

November also saw NYX win approval to operate in British Columbia, where OpenBet already had a relationship with the British Columbia Lottery Corp’s online gambling site PlayNow.com.

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