BUSINESS

NYX revenue up over 73% thanks to OpenBet contributions

TAGs: nyx gaming group, openbet

nyx-gaming-openbet-revenueOnline gambling technology provider NYX Gaming Group has reported another quarter of seriously strong double-digit revenue growth.

Figures released Tuesday show the Toronto-listed NYX generated revenue of C$61m (US $48.5m) in the three months ending June 30. The figure represents a 73.3% improvement over the same period last year, reflecting its early-2016 acquisitions of sports betting technology firm OpenBet and gaming content provider Betdigital.

OpenBet contributed C$32.9m in revenue to NYX’s Q2 results, up from the partial-quarter contribution of C$16.5m in Q2 2016. That said, NYX was keen to point out that even if you exclude contributions from OpenBet and Betdigital, the company enjoyed organic growth of 50.6%, thanks to a steady stream of new customer launches.

Royalty & license revenue was up 53% to C$31.9m, while professional services jumped 142% to C$28.8m. The lone negative was social gaming, which fell from C$2.5m to just under C$300k, following the company’s decision to divest itself of the play-money gambling business in June.

Gross profit totaled C$52m, although margins fell 2.3 points to 85%, which the company blamed on higher payments to third-party gaming content providers on its Open Gaming System (OGS) platform. The revenue surge allowed NYX to report adjusted earnings of $17.5m, up from $10.5m last year.

NYX also reduced its Q2 net loss to C$21.1m versus C$36.5m last year. The net losses were primarily the result of C$11m in interest payments (acquisitions cost money, you know), C$7.7m in amortization expenses and a C$13.6m loss on fair value adjustments to derivatives.

The quarter saw NYX launch OGS content on 13 new client sites and sign 18 new deals for its OGS and Open Platform System (OPS). At the end of June, the company had development commitments with 36 customers that have yet to launch, and the company signed 16 new deals as of August 15.

NYX CEO Matt Davey hailed Q2’s “positive momentum” along with a healthy development pipeline. Davey said the ongoing parade of new customer signings was proof that “our sportsbook, gaming and content offerings are resonating with customers and driving scale and operating leverage in our business.”

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