NeoGames has confirmed its audited financial results for the fiscal year ended December 31, 2021, announcing that the company’s revenue grew by 2.6% compared to 2020.
The ilottery provider declared that it achieved FY2021 revenues of $50.5m, an increase of $1.3m from the prior year (FY2020: $49.2m).
However, its revenues from turnkey solution contracts decreased by 7.4% to $29.9m in 2021, compared to $32.3m in 2020. According to NeoGames, this was primarily driven by a decrease in the Net Gaming Revenue (NGR) generated by the MSL programme partially offset by increase in the volume generated from Sazka (now Allwyn).
Revenue from games amounted to $2m last year, the same figure that was reported in 2020, despite the launch of new contracts with Lottomatica during Q4 of 2021.
NeoGames’ share of NPI revenues came in at $34.1m in 2021, rising by 258.9% year-on-year (FY2020: $9.5m).
But its comprehensive income stood at $4.7m in FY2021, compared to $6.5m in the prior year.
Meanwhile, the company’s adjusted EBITDA was $33.4m, representing a growth of 16.7% year-on-year (FY2020: $28.7m).
According to the report, the Michigan ilottery accounted for 45.3% of NeoGames’ revenue in 2021, down from 54.5% in 2020. The company noted the “intense competition” in the ilottery industry, which it expects to “intensify”.
Additionally, NeoGames noted competition from providers of other online offerings, including igaming, sports betting, mobile games and esports.
“While we believe that our customers’ ilottery offerings target different players and provide a differentiated experience than these other online offerings, the introduction of such offerings may allow new competitors to establish a foothold in regions where we currently provide the ilottery offering,” a NeoGames statement read, adding that revenues generated by the Michigan ilottery programme had been “adversely affected”.
NeoGames has also raised concerns over the “significant threat” posed to the lottery industry by illegal activities, which could severely hamper its player population and, thus, revenues.