INNOVA Financial Results for Q4 and for Full Year Announced
INNOVA Gaming Group is one of the leading gaming developers in Canada which focuses on lottery and lottery-related products. The company is best known for their lottery ticket vending machines called LT-3. INNOVA Gaming Group provides services to regulated gaming operators and state-sponsored lotteries.
Revenue on the Rise
According to the official Q4 and full year financial results of INNOVA Gaming Group, the company has recorded an increase of revenue in 2016, having generated $22.7 million in comparison to $21.2 million generated in 2015.
In the last quarter of 2016, their main product, LT-3 generated an increase of $0.5 in revenue. This is due to the fact that over the course of last year the company introduced 185 new vending machines which amounted to a total of 2,062 LT-3 ticket dispensers by December 31st, 2016. Currently this number is lower, as the company decided to remove 94 machines deployed in the State of Missouri liquor-by-the-drink locations.
The annual revenue recorded an increase of $3.5 million, or 19% in comparison to 2015. However, the cost of products has increased as well. In 2016 the cost of products increased by 9%, or $0.2 million compared to 2015.
In July 2016 INNOVA signed an EBITDA support agreement with Amaya Group, under which for the next 5 years, Amaya is to pay the amount which is equal to the shortfall between Company’s EBITDA or its subsidiaries Diamond Game or Blue Stone.
Earlier this month, Pollard Banknote Limited sent a proposal to buy shares of INNOVA at $2.10 per share. This proposal was officially supported by Amaya, who already owns 40.45% in shares. INNOVA’s newly-formed special committee including independent directors of INNOVA and financial advisors will analyze the proposal by Pollard and review the possibilities of the Company.