## Borg Posts All-Time High Q2 Earnings – Finance – iGB
Gaming software developer Borg announced a 34.2% jump in earnings for the second quarter of 2022, hitting €20.8 million (£17.5 million/$20.2 million), a new quarterly peak.
Borg’s Q2 earnings were a record.
In addition to earnings, the company also reported new quarterly highs for gross profit, gross margin, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Borg’s chief executive Yaniv Sherman attributed the increase to expansion in the quarter.
“Our operational progress highlights our ongoing success in serving a growing customer base in the expanding global regulated iGaming market,” Sherman stated.
He also mentioned that Borg achieved significant reach in the quarter, thanks to its $30 million purchase of Spin Games in June.
“Following the completion of the Spin Games acquisition in June, Borg has the product development capabilities, industry expertise, and licensed footprint across Europe and North America to further and continuously advance our content and market expansion growth plans,” he continued.
The cost of sales was €9.1 million, up 8.2% compared to the second quarter of 2021. This resulted in a record €11.6 million gross profit for the quarter, up 65.5% year-over-year.
Selling, general, and administrative expenses were €11.3 million.
Overall operating income reached €752,000, a significant improvement from the deficit of €1.7 million in the same period last year, taking into account delayed income related to the Spin agreement.
After factoring in interest expenses and income tax, the company recorded a deficit of €630,000.
Earnings reached €40.2 million in the initial six months of the year, a rise of 35.2% compared to the first half of 2021. Gross profit reached €21.6 million, a rise of 51.3%.
Net profit after interest and taxes was €90,000, a marked improvement from the deficit of €2.3 million in the prior quarter.
Modified EBITDA for the quarter was €3.1 million, a rise of 62.9% year-over-year. Cash flow from operating activities for the quarter was €3.7 million.
Operating income for the six months was €524,000.
Modified EBITDA for the initial half of the year was €6.1 million.
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