NeoGames raises 2022 guidance following ‘strong results’ across ilottery units

NeoGames CEO Moti Malul has praised the company’s ‘strong performance’ during Q3, noting that its ilottery segment had ‘outperformed market performance’ whilst displaying improved profitability
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NeoGames CEO Moti Malul has praised the company’s ‘strong performance’ during Q3, noting that its ilottery segment had ‘outperformed market performance’ whilst displaying improved profitability. 

Reporting its Q3 financial report, NeoGames posted total revenues of $62.2m, up 418.3% year-over-year, reflecting its acquisition of Aspire Global, concluded in June for a deal worth around €410m.

Total revenues, plus the company’s shares of NeoPollard Interactive capital, total $73.3m, up 262% YoY. The overall share of NPi revenues stood at $11.1m, up 34.3% YoY from Q321’s figure of $8.3m.

NeoGames lottery segment sets quarterly record

The company’s ilottery segment displayed strong performance during Q3, setting a quarterly record of $24.7m, up 22% from one year ago and up 8% sequentially. 

Lottery-based highlights for the quarter include partnering with the Georgia Lottery Corporation to extend the reach of the NeoGames Studio game content portfolio. 

Commenting on group performance, Malul said: “In ilottery, our top-line results grew 22% compared to last year reaching an all-time quarterly record.   

“In addition, ilottery Adjusted EBITDA margins returned to the 40% level during the quarter. These strong results reflect our ilottery platform continuing to power customer results to outperform market performance.”

Solidifying gaming position post-Aspire transaction

Q3 marked the first quarter post-acquisition of Aspire, in which the igaming brand posted revenues of $48.5m, down 16% year-over-year due to macroeconomic challenges caused by weakening currencies against the US dollar. 

Moreover, the firm has a presence in five out of six legalized igaming states in the US after obtaining licenses to operate in Pennsylvania and Connecticut, launching its Pariplay brand in those states. 

NeoGames also secured additional content providers on the Pariplay platform, many of which have exclusivity in the US to improve its position in regulated stateside igaming markets. 

Meanwhile, its sports betting brand BtoBet expanded its agreement with its most significant partner for a further five years in Africa, cementing its position on the continent. 

Malul added: “Our igaming and sports betting businesses grew approximately 8% on a constant currency basis reflecting continued strength in our Pariplay and BtoBet offerings. It’s early days in our integration efforts, yet we are already seeing the benefits from the combination as we advance our global leadership across ilottery, igaming and online sports betting.”


Representing Aspire’s integration into the business, NeoGames’ adjusted EBITDA increased by 135% YoY to $17.6m compared to Q321’s $7.5m.

Increased amortization costs and interest-related expenses have meant that the company made a loss of $4.4m during Q3, taking full-year losses up to $18.2m.

The $4.4m loss was compared to a net income of $1.5m one year ago and was due to “impact from the amortization of intangible assets related to the Aspire Global acquisition”.

Despite mounting losses, management remains bullish for the future as it strengthens and solidifies in key global markets. 

As such, NeoGames raised its full-year guidance for revenues, anticipating turnover in the region between $197m-$208m, up from between $194m-$208m.

Concluding his address to investors, Malul assessed the financial situation, noting the impact of global headwinds: “While we believe our results are indicative of the underlying strength we currently see in our business, we remain aware of the macro environment. 

“We did experience headwinds during the quarter related to fluctuations in foreign currency exchange rates, serving as a reminder that we need to remain disciplined and focused on controlling what we can. 

“As a result of the strengths underpinning our business each of our business lines experienced significant progress during the quarter. These advances demonstrate the value of our platform to customers as the powerhouse of best-of-brand technology servicing the interactive gaming space and to shareholders as a diversified market leader growing across multiple end markets.”