Year-to-Year Handle Increases 26.5%, GGR up 3.3% and Revenue level without key summer tournaments
NEW YORK, NY / ACCESSWIRE / November 18, 2019 / 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 its financial and operating results for the three and nine months ended September 30, 2019.
Key Business Highlights
- Significant growth in sports betting handle despite significant prior year global sporting events (including Soccer World Cup);
- Signed two retail operators in Washington, DC;
- Transacted first real-money Class 1 Tribal sports bet in Montana;
- Italian betting operations continue robust growth;
- Virtual Generation adds operators in Africa and sees expansion in Latam;
- Board strengthened with gaming expert Richard Q.M. Cooper;
- Experienced bookmaker Kevin Slicker engaged to lead U.S. platform design and U.S. expansion plan;
- Continued reduction in expenses, repayment of debt and debt conversions results in positive operating income for the past quarter.
Year to Date Financial Highlights compared to same period last year
- Nine Month handle reached $352.2 million up 26.5% compared to $278.5 million;
- Gross Gaming Revenue slight increase of 3.3% to $28.3 million compared to $27.4 million, despite the impact on Gross Gaming Revenue of the significant prior year global sporting events;
- Revenue level flat at $25.1 million compared to $25.3 million, after absorbing a 2% gaming tax rate increase;
- Net profit from operations for the third quarter of $0.34 million improves from a loss of $0.39 million in the previous quarter;
- Year to date net loss of $5.4 million compares to $1.3 million in the prior year. The net loss includes $3.6 million (2018:$1.6 million) in interest expense consisting primarily of the amortization of non-cash debt discount of $2.9 million (2018: $1.2 million) and non-cash interest accruals of $0.6 million (2018: $0.2 million) primarily on convertible debentures issued in the prior year; and increased discretionary spend on payroll expenses, professional fees and discretionary spend on gaming related trade shows and conferences aimed at developing U.S. sports betting market during the first half of 2019;
- Cash of $4.91 million, down 15.4% compared to $5.81 million after investment in trade shows and marketing activities and the scheduled repayment of acquisition debt.
Outlook: We have focused our attention to curtailing expenses, by restructuring our US management team and Board of Directors with effect from May 2019, which has resulted in the improvement in profit from operations.
We expect our disciplined strategy to remain the same for the remainder of the year and our 2019 guidance of 20 - 25% growth in handle remains unchanged.
Michele (Mike) Ciavarella, Newgioco Chief Executive Officer stated, "our 2019 third quarter results were stronger than expected considering there were no major summer soccer events that traditionally drive our European sports betting operations through the second and third quarters of each year. Keeping with our commitment to stockholders, we returned to positive net profit from operations, narrowly within two quarters after a wholesale change in our corporate board and direction, with strong momentum headed into the fourth quarter of 2019. We also made considerable progress in corporate initiatives during the third quarter including filing our S-1 registration statement related to our plans to list our shares on the NASDAQ Stock Market. We continue to grow our total gaming handle, generating 26.9% year-over year growth, exceeding $350 million, and keeping us on pace to achieve our outlook and reach $500 million in handle for the full year."
In the U.S., we made progress during the quarter with two new retail customers signed in Washington, DC. Handle 19, Inc. and Grand Central LLC operate retail sports bars and sandwich shop establishments, complimenting our Italian distribution, which bodes well for our ability to provide effective sports betting know-how and guidance for a long and successful relationship with our new partners. We also engaged U.S. sports book expert, Kevin Slicker to lead U.S. platform design and development and believe that Kevin may accelerate delivery of our core strategic objectives. Considering all these combined positive developments, we are quite enthusiastic about the international growth prospects for the combined group with the addition of Virtual Generation," added Mr. Ciavarella.
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.
Investors may also find us on Facebook® and follow us on Twitter @NWGI_gaming.
Forward-Looking Statements
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 Virtual Generation seeing expansion in Latam, our 2019 guidance of 20 - 25% growth in handle, our plans to list our shares on the NASDAQ Stock Market, growth keeping us on pace to achieve our outlook and reach $500 million in handle for the full year, strong momentum headed into the fourth quarter of 2019, our ability to provide sports betting know-how and guidance for a long and successful relationship with new partners, belief that Kevin Slicker may accelerate delivery of our core strategic objectives and our being enthusiastic about the international growth prospects for the combined group with the addition of Virtual Generation. 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 Virtual Generation achieving expansion in Latam, our ability to meet 2019 guidance of 20 - 25% growth in handle, to list our shares on the NASDAQ Stock Market, achieve our outlook and reach $500 million in handle for the full year, strong momentum headed into the fourth quarter of 2019, provide sports betting know-how and guidance for a long and successful relationship with new partners, Kevin Slicker's ability to accelerate delivery of our core strategic objectives and to reach our international growth prospects for the combined group with the addition of Virtual Generation, 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:
Newgioco Group, Inc.
Michele Ciavarella, Chief Executive Officer
investor@newgiocogroup.com
SOURCE: Newgioco Group, Inc
View source version on accesswire.com:
https://www.accesswire.com/567019/Newgioco-Reports-Operational-Results-Through-September-30-2019
