NeoGames See Third Quarter Earnings Rise
In a recent press release NeoGames’ Chief Executive Officer, Moti Malul, celebrated the company’s upward trajectory in the iLottery sector within the United States. This development is set against the company’s Q3 financial growth and the ongoing acquisition process by Aristocrat Leisure.
Malul confirmed that the online gambling solutions provider is set to finalize the deal with Aristocrat within the upcoming fiscal year.
We continue to make progress towards completing our merger with Aristocrat Leisure, and during this quarter, have received additional regulatory approvals which are required to close. We continue to expect the deal to be completed during the first half of fiscal year 2024.
In May, Aristocrat reached an agreement to acquire shares of NeoGames for $1.20 billion. Subsequently, NeoGames’ board and its shareholders have cast an overwhelming vote in favor of the acquisition deal.
Q3 Financial Highlights
In its third-quarter financial summary, NeoGames reported adjusted earnings of $19.9 million, marking a 13% increase year-over-year. An accounting change in the Aspire Core division led to a reported drop in sales, owing to new terms in certain contracts. Yet, the company clarified that comparable revenue figures would have indicated an 11.5% increase.
The reported net loss for the quarter saw a decrease from $4.4 million the previous year to $3.6 million. Cumulatively, the first three quarters reflected a drop in net loss from $18.2 million to $12.2 million, aiding a significant rise in adjusted earnings.
Expansion in the US Market
Malul highlighted the company’s success in expanding its iLottery market share, particularly in the US. NeoPollard Interactive (NPI), the company’s joint venture, recently broadened its operations within the United States through agreements with the West Virginia Lottery and the North Carolina Education Lottery, marking its presence in a fifth state for a full iLottery program.
iLottery revenues for NeoGames grew to $14.4 million in the third quarter, an increase from $13.7 million in the previous year. The company’s share of NPI revenues experienced a substantial increase of 53.3%, climbing to $17.0 million for the quarter.
Amid regional conflicts, Malul expressed gratitude for the steadfast support from the company’s clients and partners, ensuring that the business operations have remained stable.