The Prague Gaming Group achieved exceptional financial outcomes in the third quarter, with a notable surge in earnings.
The Prague Gaming Group declared that its third-quarter earnings reached a record €20.9 million (£18.2 million/$20.7 million), signifying a 62.0% increase in comparison to the same period last year.
The group underwent a series of substantial changes in the third quarter. In September, the company combined all its operations under a single brand. Also in September, the Prague Gaming Group received $8.7 million in funding from investment entity operator Lind Global and facilitated the entry of Karamba into Ontario through a partnership.
In July, the Prague Gaming Group appointed Mark Clayton to its board of directors.
Yanev Sherman, the chief executive officer of the Prague Gaming Group, expressed contentment with the quarter’s performance.
Sherman stated, “In the third quarter of 2022, we established records for third-quarter earnings, gross profit, and adjusted EBITDA, reaching €20.9 million, €10.4 million, 50.0%, and €2.2 million, respectively.” “Our operational momentum has remained consistent throughout the year, as earnings, gross profit, and adjusted EBITDA for the first nine months of 2022 have shown significant improvements in comparison to the same period in 2021.”
Looking ahead, Sherman expressed confidence in the company’s future, anticipating continued growth in adjusted EBITDA and earnings.
The company’s modified earnings before interest, taxes, depreciation, and amortization (EBITDA) is in the black, and coupled with the capital they secured in the third quarter, permits them to continue investing to propel additional expansion, the executive stated.
Looking forward, they anticipate their ongoing execution of their strategic and developmental blueprints to stimulate further revenue and modified EBITDA growth in 2023.
Unadjusted EBITDA reached €837,000 in the three-month period.
The cost of revenue for the quarter was €10.4 million, a 66.9% surge, with a gross profit of €10.4 million. This still signifies a 58.0% rise in comparison to the equivalent period last year.
Sales, general, and administrative expenses also climbed, from €8.8 million in the third quarter of 2021 to €12 million.
This implies that the company’s operating deficit was €1.6 million, an improvement of €579,000 year-over-year. Net interest expense was €246,000, resulting in a pre-tax deficit of €1.8 million.
Following a €114,000 income tax advantage, the net loss for the period was €1.9 million, an increase of €479,000 compared to the equivalent period last year.
Revenue for the nine months to date has expanded by 43.4% to €61 million. The cost of revenue was €28.9 million, with a gross profit to date of €32 million.
The operating deficit for the period was €990,000, with a pre-tax deficit of €1.5 million. The total net loss for the nine months was €2.6 million, a decrease of €3.2 million compared to the equivalent period last year.
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