NeoGames Publishes Q3 Financial Results: A Mixed Bag of Revenues and Growth

NeoGames, a leader in the online lottery and casino industry, has unveiled its financial performance for the third quarter. The report outlines a total revenue of $63.3 million for the period ending in September. However, this marks a decline compared to the $73.3 million NeoGames generated in Q3 2022. Nonetheless, the company highlights a significant year-on-year growth of 11.5% if iGaming revenues are considered on a gross basis for the Aspire Core, reaching $81.7 million.

iLottery revenues for the same period stood at $14.4 million, signifying a 5.6% year-on-year increase. When combined with NeoGames' share of NPI revenues, the total revenue in this category amounted to $31.4 million.

Conversely, iGaming operations generated $31.9 million in revenue. NeoGames clarifies that this figure primarily reflects Aspire Core revenues on a net basis compared to historical figures on a gross basis. Had iGaming revenues been accounted for on a gross basis for the Aspire Core, the iGaming revenue would have reached $50.5 million.

The company reported a net loss of $3.6 million, equivalent to $0.10 per share, attributing it to the Aristocrat acquisition deal and amortization linked to the previous Aspire arrangement. However, NeoGames also shared positive news of an adjusted net income of $4.4 million, surpassing the $3 million income from the same period last year.

Alongside the financial results, NeoGames highlighted several notable achievements for the third quarter:

Partnerships: NeoGames inked an agreement with the West Virginia Lottery and expanded its partnership with the North Carolina Education Lottery.

Content Expansion: NeoGames Studio introduced content in Greece through OPAP and in Pennsylvania with RSI via Pariplay. Pariplay, the content supplier, signed agreements with 10 new operators in Q3.

Licensing: NeoGames' Aspire Global brand secured a license in Germany, while BtoBet went live with Alberta Gaming in Canada. NeoGames Studio also launched its portfolio of eInstant games with the Atlantic Lottery Corporation Canada.

NeoGames reassured that the ongoing conflict in Gaza would not disrupt its operations in Israel. The company remains committed to its customers and business partners in the region and stated that its operations continue without interruption.

Moti Malul, NeoGames' CEO, expressed his satisfaction with the Q3 results and emphasized the company's commitment to expanding its business and enhancing its products in the United States and beyond. He conveyed his gratitude for the continued support from customers and partners, despite the challenging situation in Israel and the Middle East, where the company operates without disruptions.

Malul also expressed enthusiasm about the upcoming merger with Aristocrat and NeoGames' dedication to advancing the iGaming industry and capitalizing on new opportunities.