NYX Gaming Group Limited Reports Third Quarter 2017 Results Revenue of $58.5 million, up 7.7% year-over-year, and Adjusted EBITDA margin of 29.8%
LAS VEGAS, NV, November 14, 2017 – NYX Gaming Group Limited (TSXV:NYX) (“NYX”, the “Company” or “NYX Gaming Group”) today announced its financial and operating results for the third quarter ended September 30, 2017. All amounts expressed are in Canadian dollars unless otherwise noted.
“We delivered solid revenue and adjusted EBITDA growth in the third quarter along with improved adjusted EBITDA margin from the second quarter of 2017 and the third quarter of the prior year,” said Matt Davey, CEO of NYX Gaming Group. “The value our customers see in our proven gaming platform and business is clear, and as a management team we’ll continue to act to maximize value in a way that is in the best interests of NYX and its shareholders.”
Third Quarter 2017 Highlights:
- Revenue of $58.5 million, or growth of 7.7% year-over-year
- Royalty and license revenue of $35.8 million, or growth of 35.2% year-over-year
- Adjusted EBITDA of $17.4 million, an increase of 20.2% over the prior year period
- Adjusted EBITDA margin of 29.8% compared to 26.7% for the prior year period
- Net cash provided by operating activities of $34.3 million for the nine months ended September 30, 2017 compared to net cash provided by operating activities of $17.8 million for the prior year period
- Signed 18 new agreements for the Open Platform System and Open Gaming System
- Launched OGS content across 12 new client sites
- As of September 30, 2017, held development commitments with 40 customers that have not yet launched.
To supplement the Company’s condensed consolidated financial statements presented in accordance with 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 income (loss) to Adjusted EBITDA is provided in the table below. The Company defines “Adjusted EBITDA” as net income (loss) 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 and derivatives, foreign exchange gains and losses, acquisition and restructuring costs, and other gains and losses.
Financial Statements and Management’s Discussion and Analysis
NYX Gaming Group’s interim condensed consolidated financial statements, notes thereto and Management’s Discussion and Analysis for the nine months ended September 30, 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 and the Company’s website at www.nyxgaminggroup.com.
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”, “would”, “should”, “could”, “expects”, “plans”, “anticipates”, “believes”, “intends”, “trends”, “estimates”, “likely”, “predicts”, “potential”, or, in each case, their negative or other variations of these words or other comparable terminology, are intended to identify forward-looking statements. 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. Because of the factors described herein, investors are cautioned not to put undue reliance on forward-looking statements, whether as a result of new information, future events or changes. 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, the risks relating to the pending transaction with Scientific Games Corporation (“Scientific Games”), including, the possibility that the closing conditions to the contemplated transaction may not be satisfied or there is a delay in closing the transaction or the occurrence of any event that could give rise to termination of the Arrangement Agreement, 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 press release contains certain non-IFRS financial measures and are noted where used. These measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations 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 (TSXV: NYX) is a leading digital gaming provider, headquartered in Las Vegas, USA, with a staff of more than 1,000 employees globally, including more than 600 engineers.
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 more than 200 unique customers.
The award-winning NYX OGS™ (Open Gaming System), which allows licensees to leverage the best-ofbreed, multi-vendor casino content from around the world, is acknowledged to be the industry’s marketleading 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 more than 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 peak bets-per-minute.
NYX Gaming Group Limited is listed on the TSX Venture Exchange under the symbol TSXV: NYX. For more information about the Company, including press releases, links to SEDAR filings and other financial information, please visit the Company’s investor relations website at: www.nyxgaminggroup.com/investors.
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