NYX revenues climb 8%
Q3 revenues hit C$58.5m but analysts focus on legal battle with “leading investor-customer” William Hill
NYX has reported a 7.7% rise in Q3 revenues to C$58.5m, with adjusted EBITDA of C$17.4m, an increase of 20.2% on the same period last year.
The firm, which is embroiled in a legal dispute with William Hill over its sale to Scientific Games, signed 18 new agreements for its OPS and OGS during the quarter.
“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 maximise value in a way that is in the best interests of NYX and its shareholders.”
The firm also detailed a strong customer pipeline, holding development commitments with 40 customers that have not yet launched.
Paul Leyland of Regulus Partners said NYX had made solid operation progress but was likely under-performing the wider digital market.
“This highlights the issues with the relatively fixed revenue model of OpenBet as well as the ‘low level’ nature of NYX’s gaming ubiquity,” Leyland said.
“On paper, all of this can be fixed with the scale, reach and (latent) development capability of Scientific Games.
“However, before all this upside potential can be put to the test, the small issue of legal action with NYX’s leading investor-customer needs to be dealt with…”