NeoGames has detailed strong financial progress across its product portfolio in Q2 2023, with strides being made in both iLottery and igaming, as well as sports betting.
The Nasdaq-listed enterprise detailed Q2 group-wide revenue of $62m ($31m), an increase of 98% on the year prior, as well as an increase in EBITDA of 75% from $10m to $18m and a reduction in net losses of 39% from $13m to $8m.
Its flagship lottery product saw revenue rise 8% to $14m ($13m), with its share in NeoPollard Interactive also increasing by 38% from $10m to $14m – coupled together, the lottery segment recorded total revenue growth of 21% to $28m ($22m).
Lottery operations were bolstered by a range of partnerships signed during the quarter, including an extension of NPI’s arrangement with the Virginia Lottery to include Pariplay content aggregation services.
Additional lottery deals included a four year partnership with Lotteries Entertainment Innovation Alliance AS (LEIA), providing instant games to the French, Danish, Swedish, Norwegian and Finnish lotteries, and an instant launch with Canada’s Atlantic Lottery Corporation.
NeoGames CEO Moti Malul remarked: “The agreements we signed with our iLottery customers and new notable iGaming entities, such as AGLC, the Virginia Lottery, SunBet, PlayLive! and Metropolitan Gaming demonstrates the trust and confidence our partners place in our cutting-edge solutions.
“Furthermore, securing our igaming licence for slot games in Germany represented a significant milestone, reaffirming our position as a leader in the European regulated online gaming industry.
“This commitment to deliver world-class gaming experiences was further demonstrated by our partnership with Lotteries Entertainment Innovation Alliance, to provide content to prominent European lotteries in France, Denmark, Norway, Sweden and Finland.”
As Malul alluded to, igaming was also a key growth driver during Q2. With revenue of $34m, NeoGames’ igaming division was arguably its standout segment during the second quarter.
Aspire Global – acquired in June 2022 – accounted for the majority of this. The acquisition of the solutions provider in June of last incorporated several new igaming brands and products into NeoGames portfolio, such as Pariplay and Aspire Core.
Notable events for the igaming unit between April and June, as referenced by the firm’s CEO, included Aspire’s debut US deal with Playlive Online Casino in Pennsylvania, its first slot licence in Germany and a partnership with casino operator Metropolitan Gaming in the UK.
Furthermore, Pariplay secured a content aggregation deal with prominent South African operator SunBet.
Meanwhile, the acquisition of Aspire Global also introduced a sports betting element to NeoGames business – the BtoBet sportsbook. This property also secured a prominent deal in Q2, supplying Alberta Gaming, Liquor and Cannabis (AGLC) with sports betting solutions in partnership with NPI.
Malul remarked: “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, with progress during the second quarter of 2023 across all of our business lines, including BtoBet, Pariplay, Aspire Core, as well as NeoPollard Interactive.”
Post quarterly developments could see NeoGames come under new ownership this year, as the firm’s shareholders have approved a proposed combination agreement with Aristocrat Leisure.
A second investor vote is needed to approve the transaction, which would see NeoGames become a privately held entity of ASX enterprise Aristocrat as well as relocate from its founding country of 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 fiscal year 2024.
“In the meantime, we remain dedicated to elevating the igaming landscape, capitalising on opportunities, and executing on our strategic goals for all stakeholders.”
