Aspire Global acquisition sees Q3 total revenue spike for NeoGames
NeoGames experienced a 262 per cent increase in the company’s total revenue, as well as shares in NPI revenues, totalling $73.3m in the third quarter.
Releasing its financial results for Q3, 2022, NeoGames stated the dramatic rise in total revenue, which stood at $20.2m, was primarily down to the combination with Aspire Global.
Revenues were $62.2m during Q3, 2022, compared to $12m during the same period a year prior. In addition, the company’s share in NPI revenues was $11.1m in the third quarter of 2022, compared to 2021 figures of $8.3m. This represented a 34.3 per cent year-on-year increase.
Moti Malul, Chief Executive Officer of NeoGames, said: “The strong performance where we grew revenue and profitability across the business is a great start for our first full quarter post completion of the combination. In ilottery, our top line results grew 22 per cent compared to last year reaching an all-time quarterly record.
“In addition, ilottery adjusted EBITDA margins returned to the 40 per cent level during the quarter. These strong results reflect our ilottery platform continuing to power customer results to outperform market performance.”
Also revealed in the report was Aspire Global’s revenues gathered in the third quarter, which stood at $48.5m, reflecting an eight per cent increase – measured in constant currency due to the 16 per cent decrease inflicted by the impact of foreign currency exchange rates.
However, Q3 wasn’t all increases and growth as NeoGames reported a $4.4m net loss, equal to $0.13 per cent, during the period, which it put down to a $0.23 per share impact from amortisation of intangible assets related to the Aspire Global acquisition.
Additionally, the current year quarter reflects the impact of interest expense related to the transaction that was not incurred last year.
Adjusted EBITDA was $17.6m during the third quarter of 2022, compared to $7.5m generated in the corresponding time period last year, representing an increase of 135 per cent year-over-year.
Off the back of NeoGames’s third quarter performance, the firm will be updating its fiscal year 2022 revenue and share of NPI revenue interest guidance to between $197m and $208m, compared to the previous range of between $194m and $208m.
Malul concluded: “While we believe our results are indicative of the underlying strength we currently see in our business, we remain aware of the macro environment. We did experience headwinds during the quarter related to fluctuations in foreign currency exchange rates, serving as a reminder that we need to remain disciplined and focused on controlling what we can.
“As a result of the strengths underpinning our business each of our business lines experienced significant progress during the quarter. These advances demonstrate the value of our platform to customers as the powerhouse of best-of-brand technology servicing the interactive gaming space and to shareholders as a diversified market leader growing across multiple end markets.”