Online gambling technology supplier NYX Gaming Group more than doubled its revenue in the third quarter of 2015 but its net loss rose nine-fold due to acquisition expenses and continued underperformance by its Ongame online poker network.
NYX reported revenue of $13.3m in the three months ending Sept. 30, a 111.6% year-on-year improvement. Excluding recent acquisitions, NYX said organic revenue growth was up 63.5% to $10.3m. But adjusted earnings fell 166% to -$1.4m and NYX reported a net loss of $6.5m compared to an $812k profit in the same period last year.
The company laid part of the blame for the red ink at the door of its Ongame poker business, which recorded a net loss of $2.5m in Q3. NYX acquired Ongame from Canada’s Amaya Gaming last November and the business, which was already in decline at the time, has continued to struggle. On the plus side, Ongame’s Q3 losses were $800k less than it reported in Q2.
Blame was also assigned to NYX’s other recent add-ons – including Amaya’s B2B software division, Belgrade-based technology outfit eGaming Consulting and a buyout of its former joint venture partner in SNG Interactive – which helped push NYX’s Q3 acquisition and restructuring expenses to $6.6m.