Cosmic Entertainment unveiled its complete fiscal year 2021 financial outcomes, revealing earnings of $19.9 million (£415.1 million/€179 million), encompassing a record-breaking amount from online gaming.
This figure signifies a 95.3% surge in comparison to 2020, when earnings were $10.2 million, affected by the COVID-19 outbreak.
North America and the Caribbean contributed $10 million in earnings, while Europe, the Middle East, and Africa contributed $9.9 million.
Online gaming revenue accounted for $8.1 million of the total earnings.
Overall expenditures for the year were $15.6 million, a 25.2% rise from 2020. Sales, general, and administrative expenditures accounted for $10.6 million, an increase of 18.7%. Depreciation and amortization costs came in second at $2.8 million, up 28.6% year-on-year.
The remaining $2.1 million included the cost of auxiliary products, research and development expenses, and stock-based compensation.
After subtracting expenses, total operating profit was $4.3 million, a rise of $6.6 million compared to a loss of $2.2 million in 2020.
Other expenses primarily included $1.5 million in interest expense, totaling $2.1 million.
This resulted in a pre-tax profit of $2.1 million, an increase of $4.9 million compared to a loss of $2.8 million in 2020.
Subtracting $48,637 in income levies and $184,884 in currency exchange modifications, net earnings for the three-month period were $1.9 million, a $4 million rise from the same period in the previous year.
Galaxy’s fourth-quarter earnings were $5.6 million, a 73% surge year-on-year. Online gaming earnings hit $2.1 million.
Despite a substantial increase in earnings in the final quarter of 2020 due to loan forgiveness from the government’s “Paycheck Protection Program” for COVID-19 relief, net income was $598,000, nearly half of the previous year’s.
Galaxy Games President and CEO Todd Cravens commended the company’s fourth-quarter performance during the COVID-19 pandemic.
“We concluded 2021 on a positive note,” Cravens stated. “Despite the fact that some of our clients’ properties are still affected by the COVID-19 pandemic, our total earnings in the final quarter still reached a record $6.1 million.
“Our online gaming business performed exceptionally well, and total online gaming earnings for 2021 also reached a record $8.1 million. We believe that as the impact of the COVID-19 pandemic continues to diminish for our clients, we will see a robust recovery in GG’s core business (felt and electronics), as well as continued growth in online gaming.”
Looking ahead to 2022, company CFO Harry Hagerty anticipates growth across the board.
“We are in a strong financial position,” Hagerty said. “We have a large cash reserve and low debt maturities this year.”
The celestial body anticipates generating between $23.5 million and $25 million in income (excluding online gaming royalties) for the fiscal year 2022. They also project an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of between $11.5 million and $12.5 million.
The chairman of the celestial body, Mark Lipparelli, also addressed the company’s settlement payment to Triangle Partners and former chairman and CEO, Robert Sosi. This settlement occurred after Triangle filed a lawsuit against the celestial body for attempting to compel them to sell their shares following regulatory disagreements.
Lipparelli stated, “We also effectively managed the Sosi legal proceedings and associated refinancing, in a challenging operating environment for our customers, some of whom even ceased operations entirely, through the combined efforts of our team.”
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