Galaxy Gaming, a Nevada-based casino games manufacturer, has reported decreased revenues in the financial report for the second fiscal quarter ended June 30, 2020.
Revenue slipped by 88 per cent to $664,000 and adjusted EBITDA dropped by 159 per cent to $1.42m as the casinos remain mostly shut owing to Covid-19 restrictions. The overall income was $1.1m and the net loss is $2.2m.
“The second quarter of 2020 was painful for everyone in the global casino industry,” said Todd Cravens, Galaxy’s president and CEO. “We earned virtually no revenue from our land-based clients, almost all of whom were shut for the entire quarter.
“We used the time to develop new games and technologies that we hope to introduce later this year. Our online gaming business continued to perform well and we expect to close our acquisition of Progressive Games Partners later in August, which will allow us to work more closely with our igaming clients.”
“Our liquidity remained stable in Q2 as we drew down on our revolver and accessed funds through the PPP programme,” stated Harry Hagerty, Galaxy’s CFO.
“We have been current in payments of interest and principal on our debt obligations even as our revenues were significantly diminished. However, going forward, we expect that the second-quarter results will negatively affect our ability to meet one or more of the financial covenants in our bank debt and we are pleased that Nevada State Bank has agreed to forbear enforcing certain of the covenants through the first quarter of 2021.”