NeoGames has praised the diversity of its product portfolio in driving a successful second quarter for the igaming, ilottery and sports betting solutions provider across a range of markets.
Group-wide revenue rose 98 per cent from $31.3m to $62m, which NeoGames attributes to a significant expansion of its operational reach following the business combination with Aspire Global, substantially bolstering its igaming offering.
This was reflected in the company’s gaming revenue, standing at $34m, with Aspire Global accounting for the majority of this. The acquisition of the solutions provider in last June incorporated several new igaming brands and products into NeoGames’ portfolio, such as Pariplay and Aspire Core.
Notable developments for NeoGames igaming holdings during the quarter 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.
Meanwhile, Pariplay secured a content aggregation deal with prominent South African operator SunBet.
Further headline results included adjusted EBITDA of $18m, up 75 per cent on $10m the year prior, whilst the firm was able to significantly cut its net loss from $13m to $8m, a reduction of 39 per cent.
“We are very pleased with the achievements and partnerships that defined and drove our second quarter results,” said Moti Malul, NeoGames CEO.
“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.”
On the lottery side of the business, NeoGames flagship operation increased its revenue 8 per cent from $12.8m to $13.8m, whilst its share in NeoPollard Interactive revenue rose 38 per cent from $10m to $14m. Total revenue from this segment stood at $28m, up 21 per cent on $22m the year prior.
Lottery operations were further 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, providing instant games to the French, Danish, Swedish, Norwegian and Finnish lotteries, and an instant launch with Canada’s Atlantic Lottery Corporation.
Malul continued: “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.”
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.”