Newgioco Group, Inc. Announces Strong Betting Transaction Growth for the Fourth Quarter of 2017
NEW YORK, NY / ACCESSWIRE / January 16, 2018 / Newgioco Group, Inc. (NWGI) ("Newgioco" or the "Company") a leisure betting technology company providing regulated lottery and gaming products and services through licensed subsidiaries based in Europe, is very pleased to announce an all-time record in its non-GAAP betting transaction volume and revenue growth in the fourth quarter of 2017.
Sports betting volumes in the fourth quarter of 2017 were up dramatically compared to last year increasing by 25% to $32 million, representing gross gaming profits (GGR) of $6.5 million which were the highest in company history for any previous quarter, increasing by 82% over the same period in 2016. Casino and all other brands sales increased by 10% to $23 million or 11% and Virtual Bets jumped by 59% to $8.17 million, while Poker rake declined on a seasonal basis as expected by 23% to $5.26 million leaving a GGR of approximately $260,000 for this product line.
Significantly, our mobile betting processing volume also grew to 38% from 31% of transactional volume and has seen solid continuous growth since the launch of our new mobile betting app in Q4'17.
Overall, total betting turnover processed for the fourth quarter of 2017 exceeded $69 million while GGR hit a record $10.7 million. On an annual basis, the Company expects to have exceeded projected 2017 sales by approximately 10% to $220 million and anticipates that GGR should report an all time high of approximately $24 million which the Company expects to report in its annual earnings on or before April 15, 2018.
Growth can be attributed to the added sales volume due to the launch of our ELYS betting platform by Odissea and the recent acquisitions of Ulisse, new web agents as well the strong organic brand growth of New Gioco from the Multigioco subsidiary in Italy.
Company Chairman and CEO remarked, "We are extremely pleased at the remarkable growth in our bet processing, and are also very pleased to see the growth in our mobile app business compared to previous years. The successful execution of our revenue growth plan is now yielding results which are exceeding our business plan projections well in advance of the implementation of our 2018 acquisition strategy. This positive surprise gives us better visibility and confidence in continued revenue growth throughout 2018 having started this year with all our systems and business verticals integrated and stabilised."
Alessandro Marcelli, Company President added, "The full integration of our in-house gaming software with Odissea has represented a critical inflection point in our business development plan. We are now well positioned for significant growth in Italy as we move forward together with a unified strategy to meeting the needs of a rapidly changing, and diverse, international betting landscape." Luca Pasquini, our Chief Technology Officer also added, "I am very excited for the opportunity to develop a powerful new player in the international leisure betting world around one of the newest and most efficient betting platform in the industry and to leverage what each division brings to Newgioco Group to drive positive results in both the near and long term for the Company and its investors."
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.
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, 2016. 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. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. 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, except as required by law.
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SOURCE: Newgioco Group, Inc.