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LAS VEGAS, NV, Aug. 7, 2015 /CNW/ - NYX Gaming Group Limited ("NYX" or the "Company") (TSXV: NYX) is pleased to announce that the Company has entered into a long term global agreement to provide online poker and related casino games to planetwin365 and the SKS365 Group, one of the biggest operators in the Italian market, for a minimum of five years. The partnership will start with the planetwin365 branded site which is expected to launch on NYX Poker in Q4 2015, significantly enhancing that network's player liquidity.
In addition, the Company has acquired eGaming Consulting, which previously supplied planetwin365 with their gaming operations. The current eGaming Consulting team of 14 people located in Belgrade will augment NYX's existing poker operations and lead to an overall reduction in costs for the Company as the Ongame and eGaming Consulting teams are integrated.
The total investment, which includes a mobile platform is €7,500,000 cash, of which includes €3,375,000 will be paid on closing and the remaining paid over the following six months as certain milestones are met. The purchase price paid is based on a range of 5.5x to 7.5x 2015 estimated EBITDA and financed with cash on hand (which includes the expected revenue from the long term global agreement with planetwin365). The transaction remains subject to customary gaming regulatory approvals.
"We are proud to have reached agreement with planetwin365, which operate an online sports book and gaming business that has shown impressive growth within the highly competitive gaming industry. This B2B deal and related acquisitions are important steps to meeting our commitment to shareholders to restructure Ongame and achieve cash flow breakeven for that division by the end of 2015 or early Q1 2016." said Matt Davey, Chief Executive Officer of NYX.
"NYX will be an important business partner of planetwin365 and we are delighted they have chosen us as a partner for growth in line with our commitment to nationally regulated environments. A partner such as NYX puts us in a good position to succeed in those markets." said Thomas Smallwood, Chief Executive Officer of SKS365 Group GmbH, owner of the planetwin365 brand.
About NYX Gaming Group Limited
NYX Gaming Group Limited is a leading digital gaming supplier headquartered in Las Vegas with a staff of more than 350 employees based in 8 countries across Europe, North America and Australia. The Company provides one of the world's largest portfolios of market leading content and technology to some of the largest gaming operators, lotteries and casinos across the globe. NYX has one of the broadest distribution bases in the industry with over 170 unique customers and a collective game catalogue of over 650 games. The market leading game catalogue includes slots, table games, scratch cards, lottery, bingo and poker available across web and mobile formats. NYX Gaming Group Limited is listed on the TSX Venture Exchange under the symbolTSXV: NYX.
About SKS365 Group
SKS365 Group is a licensed sports betting operator and gaming company from Austria, which has made waves in the European gaming sector since its foundation in 2009. With over one million registered customers today, their flagship brand planetwin365 is one of the fastest growing sports betting portals in Europe and SKS365 Group has become known as a leading European bookmaker. SKS365 has 1,300 outlets across Europe and has placed over 430 million bets in their bookmaking system since the start of operations in 2009. Today SKS365 Group processes an average of over 370,000 wagers per day, with peaks of 800,000 wagers per day and 2000 wagers per minute. SKS365 Group presently has planetwin365 betting shops in Austria, Italy, Serbia, Montenegro, Romania and Belgium, where the company and its partners hold licenses for sports betting operations under national regulations. The seventh country, Spain, will see the launch of a national planetwin365.es online portal in 2015. The SKS365 group of companies directly employs over 250 people. Further information can be found at www.sks365.com/about-us/.
Forward-Looking Statements and Non-IFRS Financial Measures
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "potential" or the negative of these terms or other similar expressions. Forward-looking statements in this news release include, but are not limited to, future-oriented financial information and financial outlooks, within the meaning of securities laws, information relating to the anticipated benefits of the Acquisition, including the timing and value of revenue and earnings growth potential. Forward-looking statements are based on certain assumptions about the business regarding expected growth, results of operations, performance, industry trends and growth opportunities. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements by their nature necessarily involve risks and uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future events, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to: credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates, the impact of government regulation on the online gaming industry and the risk that such regulation is subject to change, competition from other providers of online gaming services, the possibility that the Company is unable to successfully integrate the B2B Business and complete the Ongame restructuring as contemplated, the risks associated with international and foreign operations, the impact of consolidations in the online gaming industry and the other risks discussed under the heading "Risk Factors" in the Company's final long form prospectus dated December 18, 2014 and the Company's final short form prospectus dated July 9, 2015. The foregoing factors are not intended to represent a complete list of the factors that could affect the Company or the Acquisition. The Company does not intend or undertake to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
This release contains Non-IFRS financial measures. These financial measures are used by many investors to compare companies and management believes they are important measures in evaluating NYX Gaming Group. However, they are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Therefore, they may not be comparable to similar measures presented by other issuers. Investors are cautioned that such measures should not be construed as alternatives to comparable IFRS measures determined in accordance with IFRS. EBITDA is a non-IFRS measure and is defined by the Company as earnings before interest and financing costs (net of interest income), income taxes, depreciation and amortization, impairments, comprehensive income(loss), acquisition and other related one-time charges and stock-based compensation. .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE NYX Gaming Group Ltd.
For further information:
Chief Executive Officer
NYX Gaming Group Limited
(416) 815-0700 or 1-800-385-5451 ext. 232