Mr. Matt Davey reports

NYX GAMING GROUP LIMITED REPORTS THIRD QUARTER FINANCIAL RESULTS

NYX Gaming Group Ltd. has released its financial and operating results for the third quarter Sept. 30, 2015. All amounts expressed are in Canadian dollars unless otherwise noted.

"I'm pleased to announce that the third quarter marked another record-breaking quarter for NYX and an important step in our multiyear plan to gain scale and relevance as a diversified high-growth content and technology supplier to the gaming space. We saw excellent growth in revenue and gross profit and now boast the largest content portfolio combined with one of the broadest distribution bases in the industry with over 170 unique customers," said chief executive officer Matt Davey.

Third quarter 2015 highlights

Financial position as of Sept. 30, 2015

• Revenue of $13.3-million, 111.6-per-cent year-over-year growth;
• Organic revenue excluding acquisitions of $10.3-million or 63.5-per-cent year-over-year growth;
• Royalty and licence revenue $11.5-million;
• Gross profit of $11.1-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $1.4-million and $2.4-million for the three- and nine-month periods;
• Basic and diluted loss per share of 14 cents and 14 cents and earnings of six cents and six cents for the three- and nine-month periods;
• Signed six new OGS contracts, one NYX (OPS), and one poker client in the Italian market;
• 24 customers in development pipeline: five OPS, four poker, 15 OGS;
• Released 16 new games from content studio;
• Secured board of directors and shareholder approval of the normal course issuer bid (NCIB) to purchase up to 5 per cent of NYX's common shares.

Third quarter 2015 operating and financial results

During the third quarter the company launched its Open Gaming System (OGS) content across eight new client sites including Mohegan Sun and Caesars in New Jersey. In addition to the launches in New Jersey, the company launched an additional five clients, including Full Tilt, William Hill, Casino Di Venezia on OGS and Pokerstars on Chartwell Gaming System (CGS), in the regulated Italian market.

The company also successfully integrated OGS into the Cryptologic/Chartwell distribution network allowing all of Cryptolgic/Chartwell's customers access to NYX's catalogue of award-winning games and 23 clients, including Cherryforetagen, Intercasino (Intertain) and Betclic, took further casino content live.

As of Sept. 30, 2015, the company's development pipeline remains strong as it held commitments with 24 customers that have not launched; these include five OPS, four poker and 15 OGS. On the content side, the company's content studio NextGen Gaming released 16 new games during the three-month period ended Sept. 30, 2015, bringing the total of 42 new releases during the nine months of 2015.

                                       SUMMARY OF RESULTS
                                (In thousands except share data)

                                          Three months ended           Nine months ended                 
                                     Sept. 30,     Sept. 30,     Sept. 30,     Sept. 30, 
                                          2015          2014          2015          2014

Revenue                                $13,295        $6,283       $33,931       $18,709
Gross profit                            11,100         5,814        28,959        16,574
Gross margin %                           83.5%         92.5%         85.3%         88.6%
Adjusted EBITDA (loss)                 (1,407)         2,114       (2,412)         5,525
Net income (loss)                      (6,499)           812         2,335         1,311
Basic income (loss) per share           (0.14)          0.03          0.06          0.05
Diluted income (loss) per share         (0.14)          0.03          0.06          0.04

Revenue

Revenue for the three months ended Sept. 30, 2015, has grown to $13.3-million or 111.6 per cent from $6.3-million for the three months ended Sept. 30, 2014. Royalty and licence revenue was the main driver of growth in the company's business, as revenues increased $6.3-million for the three months ended Sept. 30, 2015, versus Sept. 30, 2014, to $11.5-million. Excluding acquisitions, organic revenue for the three months ended Sept. 30, 2015, has grown to $10.3-million or 63.5 per cent from $6.3-million for the three months ended Sept. 30, 2014.

Revenue for the nine months ended Sept. 30, 2015, has grown to $33.9-million or 81.4 per cent from $18.7-million for the for the nine months ended Sept. 30, 2014. Royalty and licence revenue was the main driver of growth in the company's business as revenues increased $13.3-million for the nine months ended Sept. 30, 2015, to $28.3-million versus Sept. 30, 2014. Excluding acquisitions, organic revenue for the nine months ended Sept. 30, 2015, has grown to $29.2-million or 56.1 per cent from $18.7-million for the nine months ended Sept. 30, 2014. Organic growth was attributable to new customers, growth of existing customers and new game launches.

Gross profit

Gross profit increased by $5.3-million and $12.4-million for the three and nine months ended Sept. 30, 2015, to $11.1-million and $29.0-million, respectively. Gross profit percentage was 83.5 per cent and 85.3 per cent for the three and nine months ended Sept. 30, 2015, compared with 92.5 per cent and 88.6 per cent for the comparable period in Sept. 30, 2014. The increase in gross profit was a result of the increases in revenue and from recent acquisitions. The decrease in gross margins was the result of the revenue mix of branded versus non-branded content and increase testing fees as the company continues to expand into newly regulated markets such as Italy, Spain and the United States.

Net income and earnings per share

Basic and diluted loss per share was 14 cents and 14 cents and earnings of six cents and six cents for the three and nine months ended Sept. 30, 2015, respectively. Basic and diluted earnings per share were three cents and three cents and five cents and four cents for the three and nine months ended Sept. 30, 2014, respectively.

The company's net loss for the three- and nine-month period ended Sept. 30, 2015, was $6.5-million and earnings of $2.3-million compared with earnings of $800,000 and earnings of $1.3-million for the three and nine months ended Sept. 30, 2014.

The loss for the period was the result of $6.6-million in acquisition and restructuring expenses and Ongame losses of $2.5-million for the three-month period.

Adjusted EBITDA

Adjusted EBITDA was a loss of $1.4-million and loss of $2.4-million for the three and nine months ended Sept. 30, 2015, compared with adjusted EBITDA earnings of $2.1-million and $5.5-million for Sept. 30, 2014, respectively. During the quarter EBITDA was positively impacted by strong growth in revenues and negatively impacted by an increase in development cost and the full period of consolidating the company's New Jersey operations that were previously accounted for as a joint venture. Further, given substantial sales demand the company made a strategic decision during the quarter to increase the game development capacity in its NextGen Gaming studio, which negatively impacted the operating results for the quarter. Ongame losses of $2.5-million and $8.2-million for the three and nine months ended Sept. 30, 2015, continued to negatively impact operating results.

Financial position as of Sept. 30, 2015

• Cash and cash equivalents of $6.4-million;
• Total assets of $285.8-million;
• Total liabilities of $172.9-million;
• Total borrowings of $112.4-million;
• Total stockholder equity of $112.9-million.

Financial statements and management's discussion and analysis

NYX Gaming Group's audited consolidated financial statements, notes thereto, and management's discussion and analysis for the three- and six-month period ended June 30, 2015, will be available on SEDAR. Additional information relating to NYX Gaming Group and its business may also be found on SEDAR and the company's website.

Third quarter 2015 conference call details

NYX Gaming Group is pleased to announce that it will hold a conference call to discuss its financial results for the third quarter of fiscal 2015 on Tuesday, Nov. 24 at 8:30 a.m Eastern Time. The company expects to report its financial results on Tuesday, Nov. 24, 2015, at 7 a.m ET.

To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. A question-and-answer session for analysts will follow management's presentation.

A taped rebroadcast will be available to listeners until Dec. 1, 2015, at 11:59 p.m. ET.

To access the rebroadcast, please dial 416-849-0833 or 1-855-859-2056 and enter the pass code 61847657, followed by the number sign.

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