- On 19 August 2019
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Year-to-Date Handle Increases 23.9%, GGR up 9.5% and Revenue up 3.2% in Q2
New York, Aug. 19, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Newgioco Group, Inc. (“Newgioco” or the “Company”) (OTCQB: NWGI), a global sports betting and gaming technology company providing fully integrated software solutions to online and land-based gaming and sports betting operators, announces that it reported its financial and operating results for the three and six months ended June 30, 2019 with the Securities and Exchange Commission.
Key Business Highlights
- Doubled retail distribution in Italy;
- Half year betting handle on pace to meet stated guidance;
- Online betting channel grows at a double-digit rate;
- Management and corporate reorganization completed;
- Substantial reduction in expenses meeting commitment to stockholders.
Year to Date Financial Highlights compared to same period last year
- Handle reaches $236.2 million, up 23.9% compared to $190.6 million;
- Gross Gaming Revenue of $20.6 million up 9.5% compared to $18.8 million;
- Revenue of $18.3 million, up 3.2% compared to $17.4 million;
- Cash of $5.2 million, down 16.9% compared to $6.3 million;
- Net loss of $4.8 million compares to reclassified net loss of $0.48 million. Year to date net loss reflects an increase in general and administrative expenses mainly due to increased payroll expenses, professional fees and discretionary spend on gaming related trade shows and conferences aimed at developing U.S. sports betting market. These expenses have been curtailed with effect from May 2019.
“We are quite pleased with the continuing operational performance of both our retail operations and the rapid adoption of our leading-edge Elys betting platform. We also experienced corporate dynamics with key leadership changes along with a commitment to our stockholders to achieve profitability on the investments we made since the repeal of PASPA in the U.S. To this end, we continue to grow our total gaming handle, generating 23.9% year-to-date growth, significantly exceeding $200 million, and putting us on pace to achieve our outlook of $500 million for the full year,” commented Michele (Mike) Ciavarella, Newgioco Chief Executive Officer. “The lack of major European sports impacted our land-based sports betting volume during the quarter, particularly compared to last year which benefitted from the Soccer World Cup. However, the European Soccer season has restarted, which should benefit the second half of our year as it has in the past, especially considering our expanded presence in Italy.”
“Operationally, we took significant steps to streamline our cost structure following aggressive investments in the United States that resulted in a weaker cash for bet reserve by about $1.1 million,” added Mr. Ciavarella. “Management reduced discretionary spend by 21% compared sequentially to the first quarter that resulted in a marked reduction in net loss of $1.7 million compared to $3.1 million in preceding quarter and we are currently re-evaluating application of non-GAAP financial measures to better reflect our business metrics against our peer industry competitors.”
Mr. Ciavarella continued, “We are making measurable progress in our stated goal to diversify revenues with our first revenues from global operations through the Virtual Generation acquisition in 2019. The accelerating double-digit growth of our web-based handle is reducing the conversion risk associated with the land-based engagement particularly in off-season periods and is helping to drive higher revenues to fund our U.S. expansion initiatives. We are on pace to deploy pilot sites with both our tribal and non-tribal partners in Montana in 2019. Although we are moving cautiously in the U.S., as various states consider legislation to establish rules and regulations for sports betting, we are well positioned for deployment as each state takes action.”
About Newgioco Group, Inc.
Newgioco Group, Inc., is a global leisure gaming technology company, with fully licensed online and land-based gaming operations and innovative betting technology platforms that provide bet processing for casinos and other gaming operators. 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 in retail neighborhood betting shops throughout Italy.
Newgioco offers clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots. Newgioco also owns and operates innovative betting platform software providing both B2B and B2C bet processing for casinos, sports betting and other online and land-based gaming operators. Additional information is available on our corporate website at www.newgiocogroup.com.
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 and includes statements such as our half year betting handle being on pace to meet stated guidance, our commitment to our stockholders to achieve profitability, being on pace to achieve an outlook of $500 million for the full year, European Soccer benefiting the second half of our year as it has in the past, making progress in our stated goal to diversify revenues, our web-based handle reducing the conversion risk associated with land-based engagement particularly in off-season periods and helping to drive higher revenues to fund our U.S. expansion initiatives, deploying pilot sites in 2019 with both our tribal and non-tribal partners in Montana, and being well positioned for deployment in the U.S. sports betting market as each state takes action. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include our ability to meet betting handle stated guidance, our ability to achieve profitability, our ability to achieve our outlook of $500 million for the full year, our ability to benefit in the second half of our year from European Soccer as in the past, our ability to diversify revenues, our ability to leverage our web-based handle to drive higher revenues to fund our U.S. expansion initiatives, our ability to deploy pilot sites in 2019 with both our tribal and non-tribal partners in Montana, and our ability to position ourselves for deployment in the U.S. sports betting market as each state takes action, and the risk factors described in Newgioco’s Annual Report on Form 10-K for the year ended December 31, 2018 and our subsequent filings with the U.S. Securities and Exchange Commission, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and 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, except as required by law.
For further information, please contact:
Brett Maas (646) 536-7331