NeoGames S.A. (Nasdaq: NGMS) (“NeoGames” or the "Company"), a
technology-driven provider of end-to-end iLottery and iGaming
solutions, announced today financial results for the second quarter
ended June 30, 2023.
Moti Malul, Chief Executive Officer of NeoGames,
said: “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.
The agreements we signed with our iLottery customers and new
notable iGaming entities, such as AGLC, the Virginia Lottery,
SunBet, PlayLive! and Metropolitan Gaming demonstrate the trust and
confidence our partners place in our cutting-edge solutions.
Furthermore, securing our iGaming license 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.”
“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,” Malul stated. “In the meantime, we remain
dedicated to elevating the iGaming landscape, capitalizing on
opportunities, and executing on our strategic goals for all
stakeholders.”
Second Quarter 2023 Financial
Highlights
- The total of Revenues and the Company’s share in NPI revenues
was $62.0 million during the second quarter of 2023, compared to
$31.3 million during the second quarter of 2022, representing a
98.2% increase from the prior year, reflecting primarily the
business combination with Aspire Global as well as continued growth
in each of the Company's business lines.
- iLottery revenues were $13.8 million during the second quarter
of 2023, compared to $12.8 million during the second quarter of
2022, representing an increase of 7.9% year-over-year. In addition,
the Company’s share in NPI revenues was $14.1 million during the
second quarter of 2023, compared to $10.3 million during the second
quarter of 2022, representing an increase of 37.9% year-over-year.
- NeoGames’ iLottery revenue plus the Company’s share of NPI
revenues during the second quarter of 2023 was $27.9 million, up
21.2% year-over-year.
- iGaming revenues were $34.2 million for the second quarter of
2023 and reflect accounting for the majority of Aspire Core
revenues on a net basis compared to historical figures which were
prepared on a gross basis, prompted by new commercial terms in
certain Aspire Core contracts which went into effect on January 1,
2023. If iGaming revenues had been accounted for on a gross basis
for the Aspire Core, total revenue would have been $56.8 million
for iGaming, which would have reflected 7.5% year-over-year growth
when measured in reporting currency.
- Net loss was $(7.8) million, or $(0.23) per share, during the
second quarter of 2023, compared to a net loss of $(12.9) million,
or $(0.49) per share, during the second quarter of 2022. Net loss
during the second quarter of 2023 was mainly due to a $0.23 per
share impact from the amortization of intangible assets related to
the Aspire Global acquisition. Additionally, the second quarter net
loss was impacted by costs attributed to the Aristocrat
transaction.
- Adjusted net loss1 was $(0.04) million, or $(0.00) per share,
during the second quarter of 2023, compared to $(12.5) million, or
$(0.48) per share, during the second quarter of 2022.
- Adjusted EBITDA1 was $18.0 million during the second quarter of
2023, compared to $10.3 million during the second quarter of 2022,
representing an increase of 74.7% year-over-year.
- Cash and cash equivalents balance as of the end of second
quarter of 2023 was $30.1 million, compared to $41.2 million at the
end of the fourth quarter 2022, resulting in net negative cash of
$11.0 million for the second quarter 2023. The difference in cash
flows is primarily due to several one-time items which totaled
approximately $11.0 million, including a consideration for the
acquisition of the remaining shares of GMS Entertainment
Ltd. from the managing director of Pariplay, and the impact
from a bank guarantee required to secure the Company’s German
license.
Recent Business Highlights
- BtoBet signed an agreement with NeoPollard Interactive to
provide Alberta Gaming, Liquor and Cannabis (“AGLC”) with a
complete solution for online sports betting platform and managed
trading services.
- Our NeoPollard Interactive JV has expanded its agreement with
the Virginia Lottery, pursuant to which Pariplay will provide
content aggregation technology and services with the market leading
Fusion platform.
- Pariplay signed a deal with SunBet, a market leader in South
Africa, to provide content and aggregation services.
- Aspire Global entered its first iGaming deal in the United
States with PlayLive! Online Casino in Pennsylvania.
- Aspire Global received its official iGaming license for slot
games in Germany.
- Aspire Global went live with Metropolitan Gaming, a leading
casino operator in the United Kingdom.
- The Company launched its portfolio of eInstant game
content with the Atlantic Lottery Corporation Canada.
- Signed a four year an agreement with Lotteries Entertainment
Innovation Alliance AS (“LEIA”) to provide eInstant game content to
five European lotteries, including France, Denmark, Sweden, Norway,
and Finland.
Aristocrat Transaction
On May 15, 2023, the Company entered into a
definitive Business Combination Agreement (the “Agreement”) with
Aristocrat Leisure Limited (ASX:ALL) (“Aristocrat”) and Anaxi
Investments Limited, a Cayman Islands exempted company and wholly
owned indirect subsidiary of Aristocrat (“Merger Sub”), pursuant to
which the Company is to be acquired by Aristocrat for $29.50 per
share in an all-cash transaction. Under the terms of the Agreement,
the Company agreed to transfer its statutory seat, registered
office and seat of central administration (siège de
l'administration centrale) from the Grand Duchy of Luxembourg to
the Cayman Islands by way of continuation (the “Continuation”) and
as promptly practical, Merger Sub will be merged with and into the
Company, which will be the surviving company and become a wholly
owned indirect subsidiary of Aristocrat (the “Merger”). On July 18,
2023, NeoGames’ shareholders approved the Agreement and the
Continuation, which will become effective subject to certain
regulatory approvals. A second NeoGames shareholder vote to approve
the Merger will take place immediately following the effectiveness
of the Continuation during the first half of fiscal year 2024.
NeoGames’ shareholders representing approximately 61% of the
Company’s outstanding shares have executed a support agreement with
Aristocrat, pursuant to which they have also irrevocably agreed to
vote in favor of the Merger. Completion of the transaction is
expected to occur during the first half of fiscal year 2024, and is
contingent upon customary closing conditions, including the receipt
of all required gaming and antitrust approvals. Please refer to the
Company’s Current Report on Form 6-K filed on June 21, 2023 for
further detail.
Conference Call / Webcast &
Guidance
In light of the expected sale of the Company
to Aristocrat, NeoGames will not be hosting a conference call, or
providing quantitative financial guidance in conjunction with its
second quarter 2023 earnings release.
About NeoGames
NeoGames is a technology-driven innovator and a
global leader of iLottery and iGaming solutions and services for
regulated lotteries and gaming operators. The Company offers its
customers a full-service suite of solutions, including proprietary
technology platforms, two dedicated game studios with an extensive
portfolio of engaging games – one in lottery and one in casino
games, and a range of value-added services. The recent strategic
acquisition of Aspire Global Group enables NeoGames to offer the
most comprehensive portfolio across iLottery, an innovative sports
betting platform from BtoBet, an advanced content aggregation
solution from Pariplay, and a complete set of B2B Gaming tech and
Managed Services. NeoGames remains an instrumental partner to its
customers worldwide, as it works to maximize their revenue
potential through various offerings, including regulation and
compliance, payment processing, risk management, player
relationship management, and player value optimization. NeoGames
strives to be the long-term partner of choice for its customers,
empowering them to deliver enjoyable and profitable programs to
their players, generate more revenue, and maximize proceeds to
governments and good causes.
Cautionary Statement Regarding
Forward-looking Statements
This press release contains forward-looking
statements and information within the meaning of U.S. Private
Securities Litigation Reform Act of 1995 that relate to our current
expectations and views of future events. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements contained in this press
release other than statements of historical facts, including
without limitation statements regarding, the completion of the
Merger and timing thereof, and our future business strategies are
forward-looking statements. The words or phrases such as “may,”
“will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,”
“plan,” “believe,” “potential,” “continue,” “could,” “would,”
“project,” “target,” and similar expressions are intended to
identify forward-looking statements, though not all forward-looking
statements use these words or expressions. These forward-looking
statements are subject to risks, uncertainties and assumptions,
some of which are beyond our control. In addition, these
forward-looking statements reflect our current views with respect
to future events and are not a guarantee of future performance.
Actual outcomes may differ materially from the information
contained in the forward-looking statements as a result of a number
of factors, including, without limitation, the following: the risk
that the sale of the Company to Aristocrat may not be
completed in a timely manner or at all, or that following the
Continuation the Company may be required to reincorporate in
Luxembourg, which may adversely affect the companies’ businesses
and the price of their securities; uncertainties as to the timing
of the consummation of the transaction and the potential failure to
satisfy the conditions to the consummation of the transaction,
including the receipt of certain governmental and regulatory
approvals; the potential for regulatory authorities to require
divestitures, behavioral remedies or other concessions in order to
obtain their approval of the proposed transaction; the occurrence
of any event, change or other circumstance that could give rise to
the termination of the Business Combination Agreement; the effect
of the announcement or pendency of the sale of the Company to
Aristocrat on the Company’s business relationships, operating
results, and business generally; the potential that the Company’s
shareholders may not approve the transaction; expected benefits,
including financial benefits, of the transaction may not be
realized; integration of the acquisition post-closing may not occur
as anticipated, and the combined companies’ ability to achieve the
growth prospects and synergies expected from the transaction, as
well as delays, challenges and expenses associated with integrating
the combined companies’ existing businesses may exceed current
expectations; litigation related to the transaction or otherwise;
unanticipated restructuring costs may be incurred or undisclosed
liabilities assumed; attempts to retain key personnel and customers
may not succeed; risks related to diverting management’s attention
from Parent’s ongoing business operations; exposure to inflation,
currency rate and interest rate fluctuations and risks associated
with doing business locally and internationally, as well as
fluctuations in the market price of Parent and the Company’s traded
securities. We have a concentrated customer base, and our failure
to retain our existing contracts with our customers could have a
significant adverse effect on our business; our inability to
successfully integrate Aspire, or complete or integrate other
future acquisitions, could limit our future growth or otherwise be
disruptive to our ongoing business; a reduction in discretionary
consumer spending could have an adverse impact on our business; the
growth of our business largely depends on our continued ability to
procure new contracts; we incur significant costs related to the
procurement of new contracts, which we may be unable to recover in
a timely manner, or at all; intense competition exists in the
iLottery industry, and we expect competition to continue to
intensify; our information technology and infrastructure may be
vulnerable to attacks by hackers or breached due to employee error,
malfeasance or other disruptions; in addition to competition with
other iLottery providers, we and our customers also compete with
providers of other online offerings; the gaming and lottery
industries are heavily regulated, and changes to the regulatory
framework in the jurisdictions in which we operate could harm our
existing operations; while we have not experienced a material
impact to date, the ongoing COVID-19 pandemic, including variants,
and similar health epidemics and contagious disease outbreaks could
significantly disrupt our operations and adversely affect our
business, results of operations, cash flows or financial condition;
and other risk factors described in our Annual Report on Form 20-F
for the year ended December 31, 2022, filed with the Securities and
Exchange Commission (the “SEC”) on April 28, 2023, and other
documents filed with or furnished to the SEC. It is not possible
for our management to predict all risks, nor can we assess the
impact of all factors on our business or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements we may make. We caution you therefore against relying on
these forward-looking statements, and we qualify all of our
forward-looking statements by these cautionary statements. These
statements reflect management’s current expectations regarding
future events and operating performance and speak only as of the
date of this press release. You should not put undue reliance on
any forward-looking statements. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee that future results, levels of
activity, performance and events and circumstances reflected in the
forward-looking statements will be achieved or will occur. Except
as required by applicable law, we undertake no obligation to update
or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise, after the
date on which the statements are made or to reflect the occurrence
of unanticipated events.
Non-IFRS Financial Measures and Key
Performance Indicators
This press release may include EBIT, EBITDA,
Adjusted EBITDA, NPI and NPI Revenues Interest, adjusted net income
(loss), Adjusted EPS and revenues growth measured in constant
currency which are financial measures not presented in accordance
with IFRS. We use these financial measures to supplement our
results presented in accordance with IFRS. We include these
non-IFRS financial measures because they are used by our management
to evaluate our operating performance and trends and to make
strategic decisions regarding the allocation of capital and new
investments. The Company presents revenues growth measured in
constant currency since we use constant currency information to
provide a framework in assessing how our business and geographic
segments performed excluding the effects of foreign currency
exchange rate fluctuations and believe this information is useful
to investors to facilitate comparisons and better identify trends
in our business.
EBIT, EBITDA, Adjusted EBITDA, adjusted net
income (loss), Adjusted EPS and revenues growth measured in
constant currency. We define “EBIT” as net income (loss), plus
income taxes, and interest and finance-related expenses. We define
“EBITDA” as EBIT, plus depreciation and amortization. We define
Adjusted EBITDA as EBITDA, plus share-based compensation,
prospective business combination and business combination related
expenses and the Company’s share in NPI depreciation and
amortization. We define adjusted net income (loss) as net income
(loss) adjusted by adding amortization attributable to intangible
assets acquired in business combination, net of tax. We define
adjusted EPS as adjusted net income (loss) divided by the weighted
average number of ordinary shares outstanding. We define revenues
growth measured in constant currency as revenue adjusted by using
the average foreign exchange rates for fiscal year 2023, as
reported by third parties, when converting revenues recorded in
foreign currencies to US dollar. We believe EBIT, EBITDA and
Adjusted EBITDA, adjusted net income (loss) and revenues growth
measured in constant currency are useful in evaluating our
operating performance, as they are regularly used by security
analysts, institutional investors and others in analyzing operating
performance and prospects. Adjusted EBITDA, adjusted net income
(loss) and revenues growth measured in constant currency are not
intended to be a substitute for any IFRS financial measure and, as
calculated, may not be comparable to other similarly titled
measures of performance of other companies in other industries or
within the same industry.
NPI. Refers to NeoPollard Interactive LLC that
represents the Company’s 50/50 joint venture with Pollard Banknote
Limited (“Pollard”). The joint venture was formed for the purpose
of identifying, pursuing, winning and executing iLottery contracts
in the North American lottery market. NPI is managed by an
executive board of four members, consisting of two members
appointed by NeoGames and two members appointed by Pollard. NPI has
its own general manager and dedicated workforce and operates as a
separate entity. However, it relies on NeoGames and Pollard for
certain services, such as technology development, business
operations and support services from NeoGames and corporate
services, including legal, banking and certain human resources
services, from Pollard.
Company share in NPI Revenues. NPI Revenues is
not recorded as revenues in our consolidated statements of
comprehensive income (loss), but rather is reflected in our
consolidated financial statements in accordance with the equity
method, as we share 50% of the profit of NPI subject to certain
adjustments.
Contacts
Investor Contact: ir@neogames.com
Media Relations: pr@neogames.com
|
NeoGames S.A. |
Consolidated Condensed Statements of Financial
Position |
(Unaudited, U.S. dollars in thousands) |
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
30,142 |
|
|
$ |
41,179 |
|
Restricted deposits |
|
487 |
|
|
|
489 |
|
Prepaid expenses and other receivables |
|
9,049 |
|
|
|
5,789 |
|
Due from the Michigan Joint Operation and NPI |
|
4,028 |
|
|
|
3,768 |
|
Trade receivables |
|
40,368 |
|
|
|
38,537 |
|
Income tax receivables |
|
461 |
|
|
|
536 |
|
Total current assets |
$ |
84,535 |
|
|
$ |
90,298 |
|
NON-CURRENT ASSETS |
|
|
|
Restricted deposits - Joint Venture and other |
|
10,259 |
|
|
|
4,247 |
|
Property and equipment |
|
3,678 |
|
|
|
3,992 |
|
Intangible assets |
|
345,938 |
|
|
|
347,213 |
|
Right-of-use assets |
|
8,170 |
|
|
|
7,973 |
|
Investment in Associates |
|
5,576 |
|
|
|
4,770 |
|
Deferred taxes |
|
1,784 |
|
|
|
2,451 |
|
Total non-current assets |
|
375,405 |
|
|
|
370,646 |
|
Total assets |
$ |
459,940 |
|
|
$ |
460,944 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Trade and other payables |
$ |
21,752 |
|
|
$ |
16,042 |
|
Royalty payables |
|
10,604 |
|
|
|
10,838 |
|
Client liabilities |
|
5,748 |
|
|
|
6,927 |
|
Income tax payables |
|
9,040 |
|
|
|
7,396 |
|
Gaming tax payables |
|
8,461 |
|
|
|
10,133 |
|
Lease liabilities |
|
1,708 |
|
|
|
1,150 |
|
Contingent consideration on business combination and other |
|
11,354 |
|
|
|
17,256 |
|
Employees' related payables and accruals |
|
9,080 |
|
|
|
7,262 |
|
Total current liabilities |
$ |
77,747 |
|
|
$ |
77,004 |
|
NON-CURRENT LIABILITIES |
|
|
|
Liability with respect to Caesars' IP option |
|
3,450 |
|
|
|
3,450 |
|
Loans from financial institution, net |
|
213,585 |
|
|
|
209,287 |
|
Company share of Joint Venture liabilities, net |
|
511 |
|
|
|
539 |
|
Lease liabilities |
|
6,019 |
|
|
|
6,823 |
|
Accrued severance pay, net |
|
1,118 |
|
|
|
1,033 |
|
Deferred taxes |
|
16,076 |
|
|
|
17,469 |
|
Total non-current liabilities |
$ |
240,759 |
|
|
$ |
238,601 |
|
EQUITY |
|
|
|
Share capital |
|
59 |
|
|
|
59 |
|
Reserve with respect to transaction under common control |
|
(8,467 |
) |
|
|
(8,467 |
) |
Reserve with respect to funding transactions with related
parties |
|
20,072 |
|
|
|
20,072 |
|
Accumulated other comprehensive income |
|
3,354 |
|
|
|
482 |
|
Share premium |
|
174,688 |
|
|
|
173,908 |
|
Share based payments reserve |
|
8,023 |
|
|
|
6,941 |
|
Accumulated losses |
|
(56,295 |
) |
|
|
(47,656 |
) |
Total equity |
|
141,434 |
|
|
|
145,339 |
|
Total liabilities and equity |
$ |
459,940 |
|
|
$ |
460,944 |
|
|
NeoGames
S.A. |
Consolidated
Condensed Statements of Operations |
(Unaudited, U.S.
dollars in thousands, except per share amounts) |
|
|
|
|
|
Quarter ended June 30, |
|
Year to date June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
47,908 |
|
|
$ |
21,052 |
|
|
$ |
97,441 |
|
|
$ |
34,302 |
|
Distribution expenses |
|
24,063 |
|
|
|
8,440 |
|
|
|
47,985 |
|
|
|
10,905 |
|
Development expenses |
|
3,869 |
|
|
|
3,029 |
|
|
|
8,390 |
|
|
|
5,571 |
|
Selling and marketing expenses |
|
2,241 |
|
|
|
681 |
|
|
|
5,141 |
|
|
|
1,202 |
|
General and administrative expenses |
|
8,710 |
|
|
|
4,189 |
|
|
|
16,118 |
|
|
|
7,893 |
|
Prospective and Aspire business combinations related expenses |
|
4,405 |
|
|
|
14,161 |
|
|
|
4,405 |
|
|
|
16,382 |
|
Depreciation and amortization |
|
13,734 |
|
|
|
5,051 |
|
|
|
27,333 |
|
|
|
9,005 |
|
|
|
57,022 |
|
|
|
35,551 |
|
|
|
109,372 |
|
|
|
50,958 |
|
Loss from operations |
|
(9,114 |
) |
|
|
(14,499 |
) |
|
|
(11,931 |
) |
|
|
(16,656 |
) |
Interest expenses with respect to funding from related parties |
|
- |
|
|
|
1,227 |
|
|
|
- |
|
|
|
2,867 |
|
Finance expenses |
|
5,777 |
|
|
|
1,155 |
|
|
|
11,060 |
|
|
|
1,654 |
|
The Company's share in profits of Joint Venture and associated
companies |
|
8,109 |
|
|
|
4,566 |
|
|
|
16,498 |
|
|
|
8,453 |
|
Loss before income tax expense |
|
(6,782 |
) |
|
|
(12,315 |
) |
|
|
(6,493 |
) |
|
|
(12,724 |
) |
Income tax expenses |
|
(979 |
) |
|
|
(596 |
) |
|
|
(2,146 |
) |
|
|
(1,080 |
) |
Net loss |
$ |
(7,761 |
) |
|
$ |
(12,911 |
) |
|
$ |
(8,639 |
) |
|
$ |
(13,804 |
) |
|
|
|
|
|
|
|
|
Net loss per common share outstanding, basic |
$ |
(0.23 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.53 |
) |
Net loss per common share outstanding,
diluted |
$ |
(0.23 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.53 |
) |
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
33,588,839 |
|
|
|
26,158,125 |
|
|
|
33,555,561 |
|
|
|
25,902,178 |
|
Diluted |
|
33,588,839 |
|
|
|
26,158,125 |
|
|
|
33,555,561 |
|
|
|
25,902,178 |
|
|
|
|
|
|
|
|
|
Adjusted EPS2 |
$ |
0.00 |
|
|
$ |
(0.48 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.52 |
) |
|
NeoGames S.A. |
Consolidated Condensed Statements of Cash
Flows |
(Unaudited, U.S. dollars in thousands) |
|
|
|
YTD June 30, 2023 |
Cash flows from
operating activities: |
|
Net loss |
$ |
(8,639 |
) |
Changes in other financial
assets and liabilities |
|
(2,174 |
) |
Amortization and
depreciation |
|
27,333 |
|
Finance expenses |
|
11,060 |
|
Share based compensation |
|
1,790 |
|
Other |
|
142 |
|
Net cash generated
from operating activities |
$ |
29,512 |
|
|
|
Net cash used in
investing activities |
$ |
(24,746 |
) |
|
|
Net cash used in
financing activities |
$ |
(16,414 |
) |
|
|
|
|
Net decrease in cash and cash
equivalents |
|
(11,648 |
) |
Cash and cash equivalents –
beginning of period |
|
41,179 |
|
Currency exchange differences
on cash and cash equivalents |
|
611 |
|
Cash and cash
equivalents – end of period |
$ |
30,142 |
|
|
NeoGames
S.A. |
Reconciliation of Net Loss Income to Adjusted
EBITDA |
(Unaudited, U.S.
dollars in thousands) |
|
|
|
|
|
Quarter ended June 30, |
|
Year to date June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(7,761 |
) |
|
$ |
(12,911 |
) |
|
$ |
(8,639 |
) |
|
$ |
(13,804 |
) |
Income tax expenses |
|
979 |
|
|
|
596 |
|
|
|
2,146 |
|
|
|
1,080 |
|
Finance expenses |
|
5,777 |
|
|
|
2,382 |
|
|
|
11,060 |
|
|
|
4,521 |
|
EBIT |
|
(1,005 |
) |
|
|
(9,933 |
) |
|
|
4,567 |
|
|
|
(8,203 |
) |
Depreciation and amortization |
|
13,734 |
|
|
|
5,051 |
|
|
|
27,333 |
|
|
|
9,005 |
|
EBITDA |
|
12,729 |
|
|
|
(4,882 |
) |
|
|
31,900 |
|
|
|
802 |
|
Prospective and Aspire business combinations related expenses |
|
4,405 |
|
|
|
14,161 |
|
|
|
4,405 |
|
|
|
16,382 |
|
Share-based compensation |
|
815 |
|
|
|
998 |
|
|
|
1,790 |
|
|
|
1,593 |
|
Company share of NPI depreciation and amortization |
|
52 |
|
|
|
28 |
|
|
|
101 |
|
|
|
57 |
|
Adjusted EBITDA |
$ |
18,001 |
|
|
$ |
10,305 |
|
|
$ |
38,196 |
|
|
$ |
18,834 |
|
|
NeoGames
S.A. |
Revenues
generated by NeoGames as well as
Company's share in NPI
Revenues |
(Unaudited, U.S.
dollars in thousands unless otherwise noted) |
|
|
|
|
|
Quarter ended June 30, |
|
Year to date June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
Royalties from turnkey contracts |
$ |
7,207 |
|
$ |
7,226 |
|
$ |
15,222 |
|
$ |
14,186 |
Royalties from games contracts |
|
468 |
|
|
358 |
|
|
859 |
|
|
894 |
Use of IP rights |
|
4,721 |
|
|
2,916 |
|
|
9,250 |
|
|
6,236 |
Development and other services - Aspire |
|
- |
|
|
421 |
|
|
- |
|
|
847 |
Development and other services - NPI |
|
972 |
|
|
1,405 |
|
|
2,187 |
|
|
3,081 |
Development and other services - Michigan Joint Operation |
|
385 |
|
|
426 |
|
|
644 |
|
|
758 |
Revenues |
$ |
13,753 |
|
$ |
12,752 |
|
$ |
28,162 |
|
$ |
26,002 |
NeoGames' NPI revenues interest |
$ |
14,138 |
|
$ |
10,256 |
|
$ |
28,889 |
|
$ |
19,426 |
NeoGames revenues plus NPI revenues interest |
$ |
27,891 |
|
$ |
23,008 |
|
$ |
57,051 |
|
$ |
45,428 |
iGaming revenues |
|
34,155 |
|
|
8,300 |
|
$ |
69,279 |
|
$ |
8,300 |
Revenues plus NeoGames NPI revenues interest |
$ |
62,046 |
|
$ |
31,308 |
|
$ |
126,330 |
|
$ |
53,728 |
|
NeoGames
S.A. |
Reconciliation of Net Loss to Adjusted Net
(Loss) Income |
(Unaudited, U.S.
dollars in thousands) |
|
|
|
|
|
Quarter ended June 30, |
|
Year to date June 30, |
|
2023 |
|
2022 |
|
2022 |
|
2023 |
Net loss |
$ |
(7,761 |
) |
|
$ |
(12,911 |
) |
|
$ |
(8,639 |
) |
|
$ |
(13,804 |
) |
Amortization
attributable to business combination, net of tax |
|
7,719 |
|
|
|
416 |
|
|
|
15,440 |
|
|
|
416 |
|
Adjusted net income (loss) |
$ |
(42 |
) |
|
$ |
(12,495 |
) |
|
$ |
(6,801 |
) |
|
$ |
(13,388 |
) |
Adjusted net
income (loss) per common share outstanding |
$ |
0.00 |
|
|
$ |
(0.48 |
) |
|
$ |
0.20 |
|
|
$ |
(0.52 |
) |
|
Aspire
Global |
Non-IFRS
Financial Measures - Reconciliation |
(Unaudited, U.S.
dollars in thousands unless otherwise noted) |
|
|
|
|
|
|
|
Quarter ended June 30, |
|
$ Change |
|
% Change |
|
2023 |
|
2022 |
|
As reported |
|
Foreign exchange impact |
|
In constant currency |
|
As reported |
|
In constant currency |
Aspire Core3 |
$ |
15,694 |
|
$ |
37,457 |
|
$ |
15,694 |
|
$ |
(525 |
) |
|
$ |
15,169 |
|
(58.1 |
)% |
|
(59.5 |
%) |
Games |
|
9,956 |
|
|
8,704 |
|
|
9,956 |
|
|
(331 |
) |
|
|
9,625 |
|
14.4 |
% |
|
10.6 |
% |
Sports |
|
8,505 |
|
|
5,285 |
|
|
8,505 |
|
|
(274 |
) |
|
|
8,231 |
|
60.9 |
% |
|
55.8 |
% |
Net
Revenues, as reported |
$ |
34,155 |
|
$ |
51,446 |
|
$ |
34,155 |
|
$ |
(1,130 |
) |
|
$ |
33,025 |
|
|
|
|
|
Year to date June 30, |
|
$ Change |
|
% Change |
|
2023 |
|
2022 |
|
As reported |
|
Foreign exchange impact |
|
In constant currency |
|
As reported |
|
In constant currency |
Aspire Core4 |
$ |
32,784 |
|
$ |
75,565 |
|
$ |
32,784 |
|
$ |
174 |
|
$ |
32,958 |
|
(56.6 |
%) |
|
(56.4 |
%) |
Games |
|
20,382 |
|
|
17,704 |
|
|
20,382 |
|
|
113 |
|
|
20,495 |
|
15.1 |
% |
|
15.8 |
% |
Sports |
|
16,113 |
|
|
10,150 |
|
|
16,113 |
|
|
60 |
|
|
16,173 |
|
58.7 |
% |
|
59.3 |
% |
Net Revenues, as reported |
$ |
69,279 |
|
$ |
103,419 |
|
$ |
69,279 |
|
$ |
347 |
|
$ |
69,626 |
|
|
|
|
|
________________________ 1 The section titled “Non-IFRS
Financial Measures and Key Performance Indicators” below contains a
description of the non-IFRS financial measures discussed in this
press release. Reconciliations between historical IFRS and non-IFRS
information are contained in the tables below. Throughout this
press release, we also provide a number of key performance
indicators used by our management and often used by competitors in
our industry. These and other key performance indicators are
discussed in more detail in the section titled “Non-IFRS Financial
Measures and Key Performance Indicators” in this press release.
2 See Reconciliation of Net (Loss) Income to Adjusted Net
(Loss) Income.
3 2022 Aspire Core revenues are presented based on Gross
revenues presentation, prior to the conversion of contracts
triggered Net revenue presentation. If second quarter 2023 Aspire
Core figures were presented on a Gross basis, then like-for-like
revenues would have been $38.3 million, which reflects 2.1% YoY
growth on Aspire Core, and total iGaming revenues of $56.8 million,
reflecting 7.5% YoY growth.
4 2022 Aspire Core revenues are presented based on Gross
revenues presentation, prior to the conversion of contracts
triggered Net revenue presentation. If Year to date 2023 Aspire
Core figures were presented on a Gross basis, then like-for-like
revenues would have been $80.7 million, which reflects 6.7% YoY
growth on Aspire Core, and total iGaming revenues of $117.2
million, reflecting 13.9% YoY growth.
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