NeoGames suffers Q1 loss amid pending Aspire acquisition

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NeoGames has published its financial results for Q1 of FY2022, revealing adjusted EBITDA has decreased by 12% year-on-year for the period ending March 31.

The ilottery provider has reported adjusted EBITDA was $8.5m during the first quarter of 2022, compared to $9.7m in Q1 2021.

Furthermore, its comprehensive loss stood at $0.9m in Q1, ($0.03 per share), down from a comprehensive income of $4m ($0.16 per share).

According to NeoGames, this change was impacted by several factors, including Aspire transaction-related, stock-based compensation expense and additional costs related to further build out of operations.

Earlier this year, NeoGames submitted an offer worth $410m for Swedish gaming firm Aspire Global to expand the business, and the firm expects to complete the acquisition during Q2 of 2022.

Meanwhile, the company’s revenue and share of NeoPollard Interactive (NPi) revenues totalled a record $22.4m, an increase of 3.8% year-on-year, driven by an 11.2% rise in its share of NPi revenues to $9.2m (Q1 FY2021: $$8.2m).

However, revenue decreased 0.7% year-on-year, down from $13.3m to $13.2m.

Nonetheless, NGR increased 2% to $199.7m, up from $195.8m.

Moti Malul, CEO of NeoGames, commented: “Our business continues to trend positively in 2022, as our existing accounts continue to perform well in terms of both sequential, as well as annual growth rates.

“We are delighted to see particularly strong growth from our Virginia and Alberta accounts, which have become leading contributors to our revenues.”

Virginia enjoyed quarter-over-quarter and year-on-year increases in revenue while Alberta expanded to become the company’s second largest turn-key account in terms of revenues. 

According to NeoGames, this was driven by its partnership with Aspire as Pariplay increased its market share during the quarter.

NeoGames is also updating its FY2022 revenue and share of NPI revenues interest guidance to between $91m and $96m, an 11% increase year-on-year from its prior range of between $90m and $97m.