NEW YORK, NY / ACCESSWIRE / August 20, 2018 / Newgioco Group, Inc. (NWGI) a betting technology company providing regulated sports betting and leisure gaming products and services through licensed subsidiaries in Europe, today announced that it has filed its 2018 second quarter results with the United States Securities and Exchange Commission. The report filed for the period ended June 30, 2018 reflects major highlights that include:
- Newgioco's fifth consecutive quarterly operating profits;
- outstanding triple-digit Group performance of almost 190% growth in operating income;
- strong cash reserves at $6.79 million;
- GAAP revenue increased 118.54% to $17.4 million;
- Non-GAAP transactional sales of betting turnover increased 86.33% to $190.6 million;
- robust growth in assets to $22.7 million strengthens the balance sheet;
- substantial design and development work on a pipeline of new, innovative technologies;
- technological readiness for expanding into the U.S. sports betting market.
On the strength of robust 2018 World Cup wagering, the Company's adjusted operating profit from current operations closed up 187.84% to $940,141 compared to $326,616 on a year over year basis for the three months ended June 30, 2018 and to $1.4 million for the six months ended June 30, 2018 compared to a loss of $432,705 over the same period in 2017. In addition, assets grew to $22.7 million compared to $12.2 million at December 31, 2017, strengthening the Company's balance sheet despite taking an exceptional non-cash treatment of $18.2 million in H1 2018 for the change in derivative liability related to recent convertible debenture and warrants financing due to the drop in the Company stock price. Non-GAAP betting transactional revenue for the three months ended June 30, 2018 more than doubled to $100 million from $49.6 million on a year over year basis, and to $190.6 million for the six months ended June 30, 2018 versus $102.3 million last year. Gross trading profits in Q2 2018 also increased significantly by 124.7% year over year to $9.6 million from $4.3 million, and to $18.8 million for the six months ended June 30, 2018 compared to $8.06 million over the same period in 2017. Significantly, the Company continued to generate this growth organically with all product verticals increasing, again with the greatest gains in sports betting, with solid profitability and record operating cash flow in the first half of 2018. These strong results keep the Company on track to exceed its 2018 projected transactional sales target of approximately $300 million.
Michele Ciavarella, CEO of Newgioco Group commented:
"Given the considerable number of new developments in both our core market and with international expansion plans well underway, Newgioco had another outstanding quarter in Q2 2018, with Italian retail operations exhibiting robust revenue growth driven by the innovative AI-driven technology and growth momentum of our ELYS betting platform.
In Italy, our technology team were successful in completing coding work and obtained final SOGEI certification before the start of the 2018 - 2019 soccer season this past weekend, therefore our Odissea platform is now independently connected directly to the regulator and completely free from third-party processing. The result is a savings of approximately $100,000 in service fees on an annual basis. During the quarter, Newgioco also reached three corporate milestones by completing the Ulisse, Multigioco and Rifa license transfers by executing the options on each entity with favorable terms.
In preparation for the execution of our U.S. expansion plans, the Company has also started coding for certification requirements to launch U.S. operations in the very near future. Newgioco is highly confident that its proven, powerful and efficient betting engine will resonate with casino operators in the U.S. when compared against platforms and products being offered by certain established competitors and early movers in the developing market.
Internationally, including our core Italian market and new U.S. business plans, we are preparing to launch the most advanced online betting technology with the latest in website coding fully integrated into our ELYS betting platform featuring seamless gaming account and transaction processing for B2B operators. We expect to be a very early mover with this new technology and will provide updates as they become available."
Mr. Ciavarella further also commented, "these sound operating results and product achievements are testament of our team's ability to focus and execute on a strategy to solidify Newgioco's betting platform as a market leader in AI technology and operator-centered gaming architecture. Keeping with the hallmark of our business development philosophy, Newgioco is taking a sustainable and diligent approach to the quickly developing U.S. sports betting market. As such, we have gained valuable regulatory and deployment visibility for our U.S. business blueprint and remain focussed on being an early mover with this exciting opportunity ahead. "
About Newgioco Group, Inc.
Newgioco Group, Inc., together with its subsidiaries, is a fully integrated, licensed gaming technology company. The Company conducts its business primarily through retail neighborhood betting shops and internet-based betting software platform under the registered brand Newgioco through our licensed website www.newgioco.it situated in Italy.
The Company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, lottery, interactive games and slots, as well as an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. Additional information is available on our corporate website at www.newgiocogroup.com.
Investors may also find us on Facebook® and follow us on Twitter @NWGI_gaming.
Cautionary Statement Regarding Forward Looking Statements
Except for the historical information contained herein, this press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "forecast," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as amended by the Company's Quarterly Report on Form 10-Q. One or more of these factors have affected, and in the future, could affect our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. Therefore, because of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.
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Newgioco Group, Inc.
SOURCE: Newgioco Group, Inc.