Galaxy Gaming, the company that manufactures mobile devices running on Android OS, has reported a net loss of NT$1.5 billion for the quarter ended March 31, 2018. Despite noting “excellent quarter”, the company said it will use NT$2 billion in cash reserves to fund future development initiatives. Galaxy Gaming is a subsidiary of South Korean tech giant Samsung Electronics Co Ltd. The company currently manufactures Android-powered smartphones and tablets and is planning to enter the market for gaming devices. This report follows an announcement from Samsung earlier this year that it would discontinue production of Galaxy Tab S3 tablet after poor sales performance.
Galaxy Gaming, a Canadian video game company, releases earnings report after reporting ‘excellent quarter’
Galaxy Gaming released its earnings report after reporting an “excellent quarter” in spite of mounting losses. The company saw a decrease in revenue and net income, but noted that it was still profitable thanks to its strong player retention rates. However, the company warned that it expects continued losses due to increased competition from established video game companies and increased spending on new technology by consumers. Galaxy Gaming CEO Tim Pritchard attributed the losses to increased spending on new games, platform updates, and marketing expenses.
Galaxy Gaming sees losses mount despite noting ‘excellent quarter’
Despite announcing an “excellent quarter,” Galaxy Gaming saw its losses mount in the third quarter of 2019. The company attributed these losses to increased marketing expenses, which it said were necessary in order to grow its user base. Overall, Galaxy Gaming reported a net loss of $8 million for the three-month period ending September 30th, compared to a net loss of $4 million in the same period last year. During this time frame, the company’s monthly active userbase increased by 16%. Despite these positive numbers, Galaxy Gaming’s stock prices have decreased 14% since the company’s earnings release.
One reason for these losses could be that despite reaching new users, many of these users are not spending money on games or other digital content. For example, according to analysts at Wedbush Securities, 43% of users who engaged with Galaxy Gaming in Q3 did not spend any money within 24 hours after engaging with the platform. In comparison, only 18% of users on Facebook and 13% of users on Google Play spent any money within 24 hours after engaging with those platforms.
Despite noting these challenges and concerns, CEO Haipo Yang remains optimistic about the future of Galaxy Gaming. He believes that as more people become familiar with the platform and learn how to use it effectively, they will start spending money on games and other digital content.
Galaxy Gaming announces partnership with MGM Resorts International
Galaxy Gaming has announced a partnership with MGM Resorts International, which the gaming company says will give players access to its platforms at more than 2,000 hotels worldwide. The move comes as Galaxy Gaming continues to see losses mount despite noting ‘excellent quarter’ in March. The company said it had revenues of $31 million and losses of $30 million in the past three months. Galaxy Gaming has not yet revealed how much revenue it expects to bring in through the partnership with MGM Resorts International.
Galaxy Gaming signs a streaming agreement with Twitch
Galaxy Gaming, a Los Angeles-based streaming company that specializes in competitive gaming, has signed a streaming agreement with Twitch. This move will give Galaxy Gaming an additional avenue for attracting viewers and promoting its content.
The agreement is said to be worth $50 million over five years, with Twitch taking a 20% cut of all advertising revenue generated by the streamed content. This move is likely to help Galaxy Gaming offset ongoing losses, which stood at $10.5 million in 2018 despite noting an ‘excellent quarter’.
This move comes as Twitch continues to grow as one of the most popular platforms for streaming video games. The company has more than 55 million active users and has been reported to be worth upwards of $1 billion.
Galaxy Gaming sees losses mount despite noting ‘excellent quarter’
Gaming maker Galaxy Gaming saw losses mount in the third quarter despite noting an “excellent quarter.” The company reported a net loss of $8.5 million, compared to a net loss of $3.4 million in the same period last year. Galaxy blames the deterioration on higher depreciation and amortization expenses and a decrease in product sales. However, it also notes that its online gaming business is seeing more active players, prompting it to invest more in content and marketing. Overall, Galaxy Gaming’s performance was below expectations, with stock prices falling by nearly 10% on the news.