NYX GAMING GROUP LTD 11 PCT DEBS V.NYX.DB

RE:Increase in expenses ?

[stocksnbonds]

Restructuring has begun as per the last CC. We don't know if there have been layoffs though and likely won't until the next CC. NYX will never publish that. An analyst will likely need to ask. The key is if there have been cost reductions to offset the new costs-- not just the hires but severance pay/shutting down of redundant global locations etc. 

The recent hires of the corporate lawyer/head of OB were necessary albeit very expensive. Too expensiveI would argue. The hires should be coupled with the cutting of costs in other areas producing a net zero effect IMO. If costs continue to rise in conjunction with revenues, there will not be cash flow to pay off the massive debt NYX has amassed. This is why the stock price is stuck where it is. This entire story now is a cost containment story as that will drive other decisions forward such as debt repayment. Nothing else really matters. The share price does not lie.   

We'll see where Davey is at after Q4 numbers. For those who champion his leadership, the next set of financials will definitively demonstrate whether his interests are aligned with retail shareholders. Right now, I'm on the fence and kinda leaning towards no. He could have released preliminary unaudited revenue/cost numbers already. Are they bad ? I bet they're filled with a bunch of one time costs attempting to mask the underlying cost numbers. We'll see.  

sb