Aspire Global acquisition boosts NeoGames second quarter revenue

Finance News

NeoGames S.A, a technology-driven provider of end-to-end iLottery and iGaming solutions, announced today financial results for the second quarter ended June 30, 2022.

Revenues and the company’s share in NPI revenues was $31.3 million during the second quarter of 2022 compared to $21.4 million during the second quarter of 2021, representing a 46.4% increase from the prior year.

Revenues were $21.1 million during the second quarter of 2022, compared to $12.9 million during the second quarter of 2021. The revenue results include $8.3 million from Aspire Group from the period of June 16, 2022 to June 30, 2022. In addition, the company’s share in NPI revenues was $10.3 million during the second quarter of 2022, compared to $8.5 million during the second quarter of 2021, representing an increase of 20.6% year-over-year.

Comprehensive loss was $(12.9) million, or $(0.49) per share, during the second quarter of 2022, compared to comprehensive income of $2.8 million, or $0.10 per share, during the second quarter of 2021. The change in comprehensive income during 2022 was mainly impacted by $14.2 million of Aspire transaction-related expenses.

Adjusted EBITDA1 was $10.3 million during the second quarter of 2022, compared to $8.3 million during the second quarter of 2021 representing an increase of 24.0% year-over-year. Second quarter 2022 results include approximately $1.3 million of Adjusted EBITDA from Aspire Group from the period of June 16, 2022 to June 30, 2022.

The total of pro forma combined revenues and the Company’s share in NPI revenues for the six months ended June 30, 2022 including Aspire Global’s revenues would have totaled $148.8 million for the six months ended June 30, 2022.

Moti Malul, Chief Executive Officer of NeoGames, said: “During the quarter, we were excited to complete our tender offer for the shares of Aspire Global plc (“Aspire Global”), a truly transformative transaction that positions us as a leading global provider in technology and content across iLottery, Online Sports Betting and iGaming.

Strategically, we are already realizing benefits from the combination. We recently announced a multi-year turnkey project, leveraging our iLottery and BtoBet offerings in Brazil, which marks our entry into the market with an end- to-end solution of iLottery and online Sports Betting. Additionally, we entered into a partnership between BtoBet and SOJOGO, the lottery provider in Mozambique, leveraging our longstanding relationship with Santa Casa, the national lottery in Portugal, to provide our proprietary sportsbook offering for both online operations and its retail network.

Furthermore, as Pariplay continues to grow in Alberta, we entered a partnership with the Atlantic Lottery in Canada through Pariplay to offer its aggregation platform and a wide variety of its games content to the Canadian regional lottery organization.”

“Leading up to the combination we had strong standalone second quarter results across both the NeoGames and Aspire Global portfolios. Our reported revenues plus our NPI interest were up 46.4% from the same quarter last year. At Aspire standalone, we are also encouraged by 17.0% growth in Euro-denominated revenue for the entire quarter compared to the same quarter last year. We are thrilled to work toward achieving our full potential as we continue to fully integrate our two platforms and execute our strategic goals.”

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