(CNS) NYX Gaming Group Limited Reports First Quarter 2017 Result
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NYX Gaming Group Limited Reports First Quarter 2017 Results
2017-05-30 11:00:06.156 GMT
NYX Gaming Group Limited Reports First Quarter 2017 Results
Canada NewsWire
LAS VEGAS, May 30, 2017
Q1 Revenue of $58.9 million, up 200%, and Adjusted EBITDA of $16.8 million, up
250%
LAS VEGAS, May 30, 2017 /CNW/ - NYX Gaming Group Limited (TSXV:NYX) ("NYX
Gaming Group" or the "Company") today announced financial and operating
results for the first quarter ended March 31, 2017. All amounts expressed are
in Canadian dollars unless otherwise noted.
"With our new operating model in place, we're pleased to report growth in
revenue and Adjusted EBITDA from the prior quarter and the prior year period,"
said Matt Davey, CEO of NYX Gaming Group. "Our customer development pipeline
remains strong, and we are focused on profitable growth through our product
led strategy with targeted R&D investment in sportsbook, gaming, and content
technologies."
First Quarter 2017 Highlights
* Revenue of $58.9 million, or growth of 199.8% year-over-year;
* Organic revenue growth of 17.3% year-over-year, excluding the impact of
OpenBet and Betdigital acquisitions during May 2016;
* Royalty and license revenue of $30.9 million, or growth of 77.9%
year-over-year;
* Gross profit of $52.1 million, or 88.4% of revenue compared to 82.7% of
revenue in Q1 2016;
* Adjusted EBITDA of $16.8 million, an increase of 250.1% over the prior
year period;
* Signed 11 new agreements for the Open Platform System ("OPS") and Open
Gaming System ("OGS");
* Launched OGS content across six new client sites; and
* As of March 31, 2017, held development commitments with 28 customers that
have not yet launched.
First Quarter 2017 Operating Results and Highlights
During the first quarter of 2017, NYX Gaming Group signed 11 new agreements
for OGS and OPS and successfully launched OGS content across six new client
sites including Pokerstars Denmark, Rush Street, Nederlandse Loterij,
MarathonBet, Luckia, and GVC Holdings.
As of March 31, 2017, the development pipeline remains strong as commitments
were held with 28 customers that had not yet launched. As of May 23, 2017, NYX
Gaming Group has signed three new deals and launched two new clients since
March 31, 2017.
In addition, the number of unique game installations across the Company's
distribution network grew to 34,933 at the end of the first quarter of 2017,
an increase of 94.2% and 16.5% from the first quarter of 2016 and the fourth
quarter of 2016, respectively.
In April 2017, NYX was named Casino Platform Supplier and Best Platform
Supplier at the 2017 EGR North America Awards and iGaming North America
Awards, respectively. The awards acknowledge the Company's position as the
industry's market-leading gaming offering, through the Company's OGS and OPS
platforms, which allow licensees to leverage the best-of-breed multi-vendor
casino content from around the world.
Summary of Results
The increase in revenue and gross profit for the three months ended March 31,
2017, compared to the three months ended March 31, 2016, was attributable to a
number of factors including the results of operations from OpenBet and
Betdigital (both acquired in May 2016), increased gaming revenues from our
existing customers, and new customer launches.
Summary of Financial Information
Three Months Ended
March 31,
CAD$ (in 000s, except per share) 2017 2016
Total revenue 58,923 19,652
Gross profit 52,073 16,243
Gross profit margin 88.4% 82.7%
Adjusted EBITDA 16,802 4,799
Adjusted EBITDA margin 28.5% 24.4%
Net income (loss) 2,523 (9,136)
Basic and diluted net income (loss) per share 0.02 (0.18)
March 31, December 31,
2017 2016
Total assets 754,612 752,376
Total non-current liabilities 467,661 472,017
Revenue
Revenue for the three months ended March 31, 2017 increased to $58.9 million,
or 199.8%, from $19.7 million for the three months ended March 31, 2016. All
revenue categories grew significantly as a result of a full quarter
contribution in the amount of $34.7 million from the Company's acquisition of
OpenBet in May 2016, and 11 new agreements for OGS and OPS during the first
quarter of 2017.
Royalty and license revenue for the current quarter increased $13.5 million,
or 77.9%, to $30.9 million from $17.4 million in the prior year period.
Professional services revenue for the quarter increased $26.3 million to $27.7
million from $1.4 million for the same period in the prior year due primarily
to the acquisition of OpenBet.
Gross Profit
Gross profit increased by $35.8 million, or 220.6%, for the three months ended
March 31, 2017 to $52.1 million from $16.2 million for the three months ended
March 31, 2016. Gross profit margin was 88.4% for the three months ended March
31, 2017, compared to 82.7% for the three months ended March 31, 2016. The
increase in gross profit was a result of a revenue increase from the
underlying core casino business and the revenue impact from acquisitions.
General and Administrative Expenses
General and administrative expenses ("G&A") includes marketing,
administrative, and personnel expenses. G&A increased by $21.9 million to
$36.1 million for the three months ended March 31, 2017, compared to $14.2
million for the three months ended March 31, 2016. The increase was due
primarily to the higher operating and personnel expenses associated with the
Company's acquisitions of OpenBet and Betdigital. In addition, increases in
personnel and administration costs associated with support functions for
legal, finance, and human resources contributed to the increase in expenses.
Net Income (Loss)
The Company reported net income for the three months ended March 31, 2017 of
$2.5 million, compared to a net loss of $9.1 million for the three months
ended March 31, 2016. The increase in net income was primarily the result of
the contribution from OpenBet and gain on fair value adjustment of derivatives
of $9.9 million during the period, partially offset by higher personnel costs,
interest expense, and loss on foreign exchange for the three months ended
March 31, 2017 compared to the prior year period.
Adjusted EBITDA
To supplement the Company's consolidated financial statements presented in
accordance with International Financial Reporting Standards ("IFRS"), the
Company uses Adjusted EBITDA, a measure they believe is appropriate to provide
meaningful comparison with, and to enhance an overall understanding of, their
past financial performance and prospects for the future. The Company believes
Adjusted EBITDA provides useful information to both management and investors
by excluding specific expenses and gains that they believe are not indicative
of their core operating results. Further, Adjusted EBITDA is a measure of
operating performance used by management, as well as industry analysts, to
evaluate operations and operating performance and is widely used in the
technology and gaming industry. The presentation of this additional
information is not meant to be considered in isolation or as a substitute for
measures of financial performance prepared in accordance with IFRS. In
addition, other companies in NYX Gaming Group's industry may calculate
Adjusted EBITDA differently than the Company does. A reconciliation of net
loss to Adjusted EBITDA is provided in the table below.
The Company defines "Adjusted EBITDA" as earnings before interest and other
non-operating income (expense), income taxes, depreciation and amortization,
impairment charges, share-based payments, gains and losses on the revaluing of
contingent consideration, foreign currency gains and losses, acquisition and
restructuring costs and other gains and losses.
Three Months Ended March
CAD$ (in 000s) 2017 2016
Net income (loss) 2,523 (9,136)
Net tax expense (benefit) 670 (1,765)
Income (loss) before tax 3,193 (10,901)
Depreciation and amortization 8,646 4,463
Interest expense, net 11,122 2,365
EBITDA 22,961 (4,073)
Impairment of intangibles — 6,485
Acquisition and restructuring costs — 2,700
Foreign exchange 1,341 (75)
Fair value adjustment to derivatives (9,850) 3,046
Revaluing contingent consideration — (6,077)
Share-based payments 822 127
Other expense 1,528 2,666
Adjusted EBITDA 16,802 4,799
Adjusted EBITDA was $16.8 million for the three months ended March 31, 2017,
compared to $4.8 million for the same period in the prior year. During the
first quarter of 2017, EBITDA was positively impacted by the contribution from
OpenBet operations.
Financial Position as of March 31, 2017
* Cash and cash equivalents (including restricted cash) of $39.7 million;
* Total assets of $754.6 million;
* Total liabilities of $561.0 million;
* Total equity of $193.6 million; and
* Total borrowings of $332.2 million.
First Quarter 2017 Conference Call & Webcast
A conference call and webcast to discuss NYX Gaming Group's first quarter 2017
results will be held on May 30, 2017, at 8:30 a.m. E.T. Matt Davey, CEO of NYX
Gaming Group, and Eric Matejevich, CFO of NYX Gaming Group, will host the
call. A question and answer session will follow the presentation. To
participate, interested parties are asked to dial (647) 427-7450 or (888)
231-8191 prior to the scheduled start of the call. A replay of the conference
call will be available by dialing (855) 859-2056 and using the reference
number 22376094. The replay of this call will be available until June 6,
2017.
The Conference Call will also be webcast live at
https://event.on24.com/wcc/r/1426889/27158C4508ECF7076E7E2934E38BB84E Financial Statements and Management's Discussion and Analysis
NYX Gaming Group's unaudited consolidated financial statements, notes thereto
and Management's Discussion and Analysis for the three months ended March 31,
2017 will be available on SEDAR at www.sedar.com . Additional information
relating to NYX Gaming Group and its business may also be found on SEDAR at
www.sedar.com and the Company's website at www.nyxgaminggroup.com .
Disclaimer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements and Non-IFRS Financial Measures
Certain statements included herein, including those that express management's
expectations or estimates of the Company's future performance, constitute
"forward-looking statements" within the meaning of applicable securities
laws. Any statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking statements.
Forward-looking statements are often identified by terms such as "may",
"will", "should", "expect", "plan", "anticipate", "believe", "intend",
"estimate", "potential" or the negative of these terms or other similar
expressions. Forward-looking statements are based on certain assumptions
regarding the Company's expected growth, results of operations, performance,
industry trends and growth opportunities. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that, while
considered reasonable by management at this time, are inherently subject to
significant business, economic and competitive risks, uncertainties and
contingencies that could cause actual results to differ materially from those
expressed or implied in such statements. Investors are cautioned not to put
undue reliance on forward-looking statements. Applicable risks and
uncertainties include, but are not limited to: credit, market, currency,
operational, liquidity and funding risks, including changes in economic
conditions, interest rates or tax rates, the impact of government regulation
on the online gaming industry and the risk that such regulation is subject to
change, competition from other providers of online gaming services, the
possibility that the Company may be unable to successfully integrate the
acquired businesses, the risks associated with international and foreign
operations, the impact of consolidations in the online gaming industry and the
other risks identified under the heading "Risk Factors" in the Company's final
long form prospectus dated December 18, 2014 and final short form prospectuses
dated July 9, 2015 and July 14, 2016, each as filed on SEDAR at www.sedar.com
, and in other filings that NYX Gaming Group may make with applicable
securities authorities in the future. The forward-looking statements
contained herein reflect NYX Gaming Group's current views with respect to
future events, and except as required by law, NYX Gaming Group does not
intend, and undertakes no obligation, to update any forward-looking statements
to reflect, in particular, new information or future events, or otherwise.
This release contains Non-IFRS financial measures and are noted where used.
These financial measures are used by many investors to compare companies and
management believes they are important measures in evaluating NYX Gaming
Group. However, they are not recognized measures under IFRS and do not have a
standardized meaning prescribed by IFRS. Therefore, they may not be
comparable to similar measures presented by other issuers. Investors are
cautioned that such measures should not be construed as alternatives to
comparable IFRS measures determined in accordance with IFRS.
About NYX Gaming Group
NYX Gaming Group Limited is a leading digital gaming provider, headquartered
in Las Vegas, USA, with a staff of more than 1,000 employees globally. NYX
delivers value by adhering to the highest standards of customer service,
probity, and responsibility.
It has one of the broadest distribution bases in the industry, with over 200
unique customers.
The award-winning NYX OGS™ (Open Gaming System), which allows licensees to
leverage the best-of-breed, multi-vendor casino content from around the world,
is acknowledged to be the industry's market-leading gaming offering. From its
own studios and a broad partner network of the most innovative third party
suppliers, NYX offers customers the widest portfolio of content available,
with access to over 2,000 game titles, via OGS™.
In addition, NYX's award winning sports betting division OpenBet is utilized
and trusted by leading sports book operators, with its scale and performance
world-renowned. In 2016, the OpenBet sportsbook processed more than two
billion bets and broke new records at the 2017 Grand National, where it
processed 68,000 bets-per-minute.
NYX Gaming Group Limited is listed on the TSX Venture Exchange under the
symbol TSXV:NYX. For more information about the group visit:
www.nyxgaminggroup.com .
SOURCE NYX Gaming Group Limited
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https://www.newswire.ca/en/releases/archive/May2017/30/c5313.html For Media Enquiries please contact: Huw Thomas, Chief Corporate Development
and Marketing Officer, NYX Gaming Group, E:
huw.thomas@nyxgg.com; For Investor
Relations Enquiries please contact: Dennis Fong, Investor Relations, NYX
Gaming Group, E:
investor.relations@nyxgg.com For further information: For Media Enquiries please contact: Huw Thomas, Chief
Corporate Development and Marketing Officer, NYX Gaming Group, E:
huw.thomas@nyxgg.com; For Investor Relations Enquiries please contact: Dennis
Fong, Investor Relations, NYX Gaming Group, E:
investor.relations@nyxgg.com CO: NYX Gaming Group Limited
ST: Nevada
NI: CNO ERN
-0- May/30/2017 11:00 GMT