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NeoGames: Successful Second Quarter Driven by Diverse Product Portfolio

NeoGames Successful Second Quarter Driven by Diverse Product Portfolio
by
August 11, 2023
in Finance News, iGaming News
247

NeoGames, a provider of iGaming, iLottery, and sports betting solutions, has attributed its successful second quarter to the wide range of products within its portfolio. The company experienced a remarkable 98% increase in revenue, soaring from $31.3 million to $62 million USD. This exceptional growth is credited to the substantial expansion of NeoGames’ operational reach following its merger with Aspire Global, which significantly fortified its iGaming offerings.

Dynamic Growth Fueled by Aspire Global Merger

The impact of the merger with Aspire Global was particularly evident in the gaming revenue, which reached $34 million USD. Aspire Global played a pivotal role in this growth. The acquisition of Aspire Global last June introduced several new iGaming brands and products into NeoGames’ portfolio, including Pariplay and Aspire Core.

Throughout the quarter, significant developments took place in NeoGames’ iGaming sector. These included Aspire’s debut US deal with the Playlive Online Casino in Pennsylvania, obtaining the first slot license in Germany, and forming a partnership with the UK casino operator Metropolitan Gaming.

Pariplay, on the other hand, secured a content aggregation agreement with the renowned South African operator SunBet.

Strong Results and Partnerships

The quarter’s results were impressive, with an adjusted EBITDA increase of 75% from $10 million to $18 million USD. Additionally, the company managed to significantly reduce its net loss from $13 million to $8 million USD, marking a 39% reduction.

Moti Malul, CEO of NeoGames, expressed, “We are very pleased with the achievements and partnerships that defined and drove our second-quarter results. Our continued commitment to innovation and excellence has paved the way for expansion across various global markets. Progress during the second quarter of 2023 was evident across all of our business lines, including BtoBet, Pariplay, Aspire Core, as well as NeoPollard Interactive.”

Successful iLottery Partnerships

NeoGames also achieved strong results in the lottery sector. The flagship of its lottery activities experienced an 8% increase in revenue, reaching $13.8 million USD. NeoPollard Interactive’s share of total revenue rose by 38%, amounting to $14 million USD. The total revenue from this segment reached $28 million USD, marking a 21% increase from $22 million USD the previous year.

Lottery operations were further fortified by various partnerships signed during the quarter. Notable among them was an extension of NPI’s agreement with the Virginia Lottery to include Pariplay content aggregation services.

Additional partnerships included a four-year collaboration with Lotteries Entertainment Innovation Alliance AS, providing instant games for lotteries in France, Denmark, Sweden, Norway, and Finland. NeoGames also launched instant games with Canada’s Atlantic Lottery Corporation.

Future Prospects and Collaboration

Following these quarterly developments, NeoGames could potentially change ownership this year, as the company’s shareholders have approved a proposed fusion with Aristocrat Leisure. A second investor vote is required to finalize the transaction. If approved, NeoGames will become part of Aristocrat, relocating from Luxembourg to the Cayman Islands.

Malul concluded, “We are excited about the future and the potential it holds for our company’s continued success. We continue taking steps towards completing our merger with Aristocrat Gaming, which we expect to be completed during the first half of the fiscal year 2024. In the meantime, we remain dedicated to elevating the iGaming landscape, capitalizing on opportunities, and executing on our strategic goals for all stakeholders.”

Frequently Asked Questions (FAQ) about NeoGames’ Successful Second Quarter

What contributed to NeoGames’ successful second quarter?

NeoGames achieved a 98% increase in revenue in the second quarter, thanks to a significant expansion of its operational reach following the merger with Aspire Global. This expansion significantly strengthened NeoGames’ iGaming offerings.

What role does Aspire Global play in this growth?

The acquisition of Aspire Global played a pivotal role in NeoGames’ positive development. The merger introduced new iGaming brands and products into NeoGames’ portfolio, resulting in revenue growth in the gaming sector.

What partnerships and developments occurred in the iGaming sector?

NeoGames saw significant progress in the iGaming sector, including Aspire’s debut US deal with the Playlive Online Casino in Pennsylvania, the first slot license in Germany, and a partnership with the casino operator Metropolitan Gaming in the UK.

How did NeoGames perform in the lottery sector?

NeoGames achieved strong results in the lottery business as well. The flagship of its lottery activities experienced an 8% increase in revenue, and NeoPollard Interactive’s share of total revenue increased by 38%.

What future developments can we expect?

NeoGames’ shareholders have approved a proposed fusion with Aristocrat Leisure. If approved, NeoGames will become part of Aristocrat and relocate from Luxembourg to the Cayman Islands.

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