NeoGames has detailed pleasing progress towards achieving strategic goals through the third quarter, as the company continues to work towards finalising a merger with Aristocrat.
May’s proposal to purchase NeoGames came in at a price of £29.50 per share, valuing the group at $1.2bn to represent a 104 per cent premium on the value of the company’s shares in the three months ending May 12.
Two months later, shareholders approved the agreement and the continuation, with a second vote scheduled to take place during the first half of the 2024 fiscal year.
Currently, it is updated that those representing 61 per cent of the company’s outstanding shares have executed a support agreement with Aristocrat, pursuant to which it is said that “they have also irrevocably agreed to vote in favour” of the transaction.
Completion, which is scheduled for the first half of 2024, is dependent on customary closing conditions that includes the receipt of all required gaming and antitrust approvals
“We continue to make progress towards completing our merger with Aristocrat Leisure, and during this quarter have received additional regulatory approvals which are required to close. We continue to expect the deal to be completed during the first half of fiscal year 2024,” stated Moti Malul, Chief Executive Officer of NeoGames.
“In the meantime, we remain dedicated to elevating the igaming landscape, capitalising on opportunities, and diligently executing on our strategic objectives for the benefit of all stakeholders.”
This update was delivered as the company reported revenue of $63.3m, which represents a drop from $73.3m that is aligned to a slowdown in Aspire Core.
NeoGames noted that this primarily due to regulatory changes in the United Kingdom, as well as a temporary pause in operations in Germany prior to the company recently securing its local licence.
Revenue across the group’s igaming division dropped 34.21 per cent to $31.91m (2022: $48.51m), with the aforementioned drawbacks taking hold.
The company’s ilottery division rose 5.1 per cent to $14.4m (2022: $13.7m), while its share in NeoPollard Interactive came in at $31.4m, up 26.9 per cent. This was put down to a continued positive growth trend across most major accounts.
Group-wide net loss closed to £3.6m versus the $4.4m recorded one year earlier, primarily attributed to costs attributed to the Aristocrat transaction. Adjusted EBITDA increased 12.9 per cent to $19.9m (2022: $17.6m).
“Our ilottery business continues to win market share and grow as we have recently announced that our joint venture, NeoPollard Interactive, expanded its footprint in the US, winning a public procurement to provide the West Virginia Lottery with a full ilottery program,” Malul commented.
“Furthermore, we are working together with the North Carolina Lottery to prepare for the expansion of their ilottery program as they recently received approval to launch einstant games.”
Adding: “While Aspire Core results slowed due to regulatory shifts in the United Kingdom and operational changes in Germany as we obtained our licence to operate in that market, we anticipate seeing gradual improvement over the next few quarters. We remain focused on achieving sustainable growth.
“We are also encouraged by the interest and pipeline in the US market for our igaming offering. We plan to continue to invest in delivering the deals we’ve announced and to enhance our product offering to scale and capture future opportunities in the space.”
