GGRAsia – TransAct posts 2Q profit, gaming sales up 87pct y-o-y

TransAct posts 2Q profit, gaming sales up 87pct y-o-y

Aug 10, 2023 Newsdesk Industry Talk, Latest News

TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, saw its second-quarter net sales increase 57.7 percent year-on-year, to US$19.9 million.

Sales in the casino and gaming segment reached US$12.2 million in the quarter, up 86.5 percent from second-quarter 2022.

The company reported operating income of US$1.2 million, versus an operating loss of nearly US$3.0 million in the prior-year period, it said in a Wednesday announcement.

Net profit in the three months to June 30 was about US$765,000, an improvement on the US$2.4-million loss a year earlier.

TransAct reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$1.6 million for the second quarter of 2023. That compared with a negative figure of US$2.8 million in the prior-year period.

John Dillon, TransAct’s chief executive, was quoted in the announcement as saying: “Our team continues to capitalise on opportunities in our core markets as they present themselves, and while the competitive environment in casino and gaming has started to normalise as predicted, we believe that we will see a sustainable, net market share gain in the long run.”

“We have also been hard at work with our now restructured food service technology sales team, and are beginning to actively market and demonstrate our new BOHA! Terminal 2 to existing and potential customers,” stated Mr Dillon.

He added: “While these are multi-stage sales opportunities with lengthy cycle times, we are encouraged by our early results and pre-orders, and believe a solid foundation has been laid for future growth.”

Mr Dillon was appointed on April 4 as the company’s CEO, following the departure of Bart Shuldman, who had served as TransAct’s chief executive since the company’s formation in June 1996.

On Wednesday, TransAct said it expected to record in 2023 aggregate net sales of between US$71.5 million and US$73.5 million, with total adjusted EBITDA in the range of US$8.0 million to US$8.5 million.