NYX revenues climb 73% as casino continues to flourish
Analysts question future growth potential with OpenBet undertaking major technology projects for partners like William Hill
NYX has reported a 73% year-on-year rise in Q2 revenues to C$61m, with the firm benefiting from the OpenBet acquisition and new casino customers.
Gross profit for the quarter hit C$51.9m, while EBITDA climbed 67% to C$17m.
The firm attributed its growth to the acquisition of OpenBet, acquired in May 2016, and new customer launches and development projects.
The OpenBet segment added C$33m in revenues for the three months ended June 30, growing at around 5%cc.
Excluding the impact of the OpenBet and Betdigital acquisitions, the firm reported organic revenue growth of 51%.
“We saw positive momentum in the second quarter with sequential improvement in revenue, adjusted EBITDA, and adjusted EBITDA margin from the prior quarter,” said Matt Davey, CEO of NYX Gaming Group.
“Our development pipeline remains strong and we continue to sign new customers at a steady rate, as our sportsbook, gaming, and content offerings are resonating with customers and driving scale and operating leverage in our business.”
The provider said it signed 18 new agreements for the Open Platform System (OPS) and Open Gaming System (OGS) during the quarter.
Analysts at Regulus Partners said the provider had clear strengths, but questioned the prospects for OpenBet, saying it is “likely to be struggling increasingly with the escalating technological requirements of its customers (not least balance-sheet participants William Hill and Sky Betting & Gaming)”.
Regulus continued: “The gaming side of NYX has also so far failed to achieve ‘tier one’ status either from a content or strategic platform provider perspective. These issues are likely to continue to make material growth a challenge regardless of ‘vanilla’ client wins until fixed, most logically by substantial technology and development investment.”