Newgioco Reports 2018 Third Quarter Results | 11/21/2018
NEW YORK, NY / ACCESSWIRE / November 21, 2018 / Newgioco Group, Inc. (“Newgioco” or the “Company”) (OTCQB: NWGI), a sports betting and gaming technology company providing regulated online and land-based gaming and wagering through licensed subsidiaries in Italy and Austria, and headquartered in Toronto, Canada, today reported its financial and operating results for the third quarter ended September 30, 2018.
- Non-GAAP gaming turnover increased by 82.6% to approximately USD $87.9 million for the three months ended September 30, 2018 as compared to approximately USD $48.1 million during the same period last year;
- Non-GAAP gaming turnover increased 85.2% to approximately USD $278.5 million for the nine months ended September 30, 2018 as compared to approximately USD $150.4 million during the same period last year;
- GAAP revenue for the nine months ended September 30, 2018 increased 92.8% to $25.2 million on a year over year basis from $13.1 million for the nine months ended September 30, 2017 and increased 52.7% year over year to approximately USD $7.8 million for the three months ended September 30, 2018 as compared to approximately USD $5.1 million for the three months ended September 2017;
- Total assets grew by 84.8% to approximately USD $22.6 million, compared to approximately USD $12.2 million at December 31, 2017; and
- Cash position remained strong at approximately USD $5.8 million at September 30, 2018, compared to approximately USD $6.5 million at December 31, 2017.
- Substantial design and development work on new, innovative technologies with new products expected to go to market in Q4;
- Significant personnel additions including additions to the Company’s board of directors and management team; and
- Technological readiness for expansion into the U.S. sports betting market.
“In the third quarter of 2018, which is seasonably a weak quarter for us, we again delivered strong year over year sales growth while continuing to invest in our cutting-edge sports betting platform, ELYS, a one-stop sports betting solution for licensed casinos and gaming retailers. On the back of this strong operational performance, the Company is increasing its non-GAAP betting turnover guidance to $325 million for the 2018 fiscal year. With industry-leading capabilities, Newgioco’s betting platform which offers a cutting-edge risk managed sports book with fully integrated land-based, mobile and online applications, built-in AI and BI technology and operator-centered gaming architecture, along with unique features and rich graphics we believe that are well-positioned for future growth in 2019,” stated Michele Ciavarella, Newgioco’s Chief Executive Officer.
Growth Initiatives and Milestones Achieved in 2018
- Submits Application for NASDAQ Listing (April 2018): Newgioco submitted its application to list its shares of common stock on the NASDAQ stock market;
- Raises USD $7.5 million in Private Placement Financing (June 2018): Newgioco announced the over-subscribed closing of its private placement of convertible debentures. To accommodate investor demand, the Company increased the size of the initial debenture offering from $1.5 million to $7.5 million. Together with the first two financing rounds completed in February and April 2018, the private placement of debentures, which are convertible into shares of the Company’s common stock at a fixed price of $0.40 per share, resulted in aggregate gross proceeds of approximately $8 million consisting of approximately $7 million in cash and approximately $1 million in conversions from debentures issued in 2017.
- Appointment of New Board of Directors (July 2018): Newgioco announced the appointment of three new independent board members, Russel McMeekin, Harold Wolkin and William Rutsey. Each of the new directors brings a wealth of global experience across a variety of different industry groups along with extensive experience in gaming operations and strategy.
- Entry into U.S. Sports Betting Market (September 2018): Newgioco announced its intention to enter the U.S. sports betting market following the repeal of the Professional and Amateur Sports Protection Act (PASPA) in May 2018. Newgioco aims to enter the U.S. gaming industry by combining its longstanding track record of success within Italy’s highly regulated gaming market and introducing its cost-effective, highly-scalable and customizable sports betting technology platform to a select partner network of U.S. land-based licensed gaming operators.
- Begins GLI Certification (September 2018): Newgioco announced that the Company began coding to obtain the latest standard of GLI (Gaming Labs International, LLC) certification of its ELYS betting platform in preparation to launch its U.S. sports betting business. Newgioco’s ELYS betting platform is a proven, powerful and efficient betting engine in the Company’s core Italian market. ELYS features seamless, integrated gaming account and transaction processing for B2B operators, and Newgioco believes it will resonate with casino operators in the U.S. when compared to other platforms and products being offered by certain established competitors.
- Launches Business Development Initiatives in U.S. Market (October 2018): Newgioco attended the 2018 Global Gaming Expo (“G2E”) held in Las Vegas, Nevada from October 8-11, 2018. At G2E, the Company meet with numerous U.S. based casino operators and demonstrated the newest release of its sports betting platform, ELYS. ELYS provides a fully automated and managed sports book, with an increased number of markets offered (both pre-match and live “in-game” betting), real-time risk monitoring with risk acceptance and bet monitoring tools, virtual sports betting, multi-channel payment methods and integration with multiple casinos and slot content providers.
- Newgioco Announces the Effectiveness of its Resale Registration Statement on Form S-1 (November 2018):Newgioco announced the effectiveness of its resale registration statement on Form S-1 relating to the resale of up to 3,892,379 shares of the Company’s common stock issuable upon exercise of warrants held by certain selling shareholders.
- Strengthens Management Team (September 2018): Newgioco announced several key additions to its leadership and management team. Key management additions included Elizabeth J. MacLean (Vice President Finance and Accounting), Alessandro Marcelli, (Chief Operating Officer), Ralph M. Garcea (Vice President Corporate and Business Development), Jay Cardwell (Interim Chief Financial Officer) and Bill Mitoulas (Vice President of Communications and Investor Relations).
- Recognized by CIOReview Magazine (October 2018): Newgioco recognized by CIOReview Magazine as ” 20 Most Promising Technology Solutions Providers for Casinos in 2018″.
- “Newgioco has made significant progress and achieved numerous operational, technological and financial milestones over the past year. We have built a strong, profitable and sophisticated gaming organization, while positioning the Company in 2019 to reach its long-term strategic goal and vision of continued organic growth in Italy and strategic entry into the U.S. gaming market,” stated Michele Ciavarella, Chief Executive Officer of Newgioco.
About Newgioco Group, Inc.
Newgioco Group, Inc., together with its wholly-owned subsidiaries, is a fully licensed and integrated online and land-based leisure gaming operator. The Company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on its website, www.newgioco.it as well as retail neighborhood betting shops situated throughout Italy.
The Company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots, as well as owning and operating an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. Additional information is available on our corporate website at www.newgiocogroup.com.
Cautionary Note Concerning Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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