NeoGames has reported positive trading during Q2 2023 with a particularly significant contribution from its Aspire Global brand portfolio, ahead of potentially major changes to its business later this year.
The Luxembourg-founded company reported group-wide revenue growth of 98% from $31m to $62m and an uptick in EBITDA of 75% from $10m to $18 to its Nasdaq investors, whilst also reducing net losses by 39% from $13m to $8m.
Its acquisition of Aspire Global in June last year brought some new properties and a wider operational range to the NeoGames business, introducing the BtoBet sportsbook and Aspire Core and Pariplay igaming brands.
The contribution of these assets has been substantial, most notably seen in the growth for NeoGames igaming segment. This unit reported revenue of $34m, with all three brands securing prominent deals during the quarter.
In particular, BtoBet signed a sportsbook supply arrangement Alberta Gaming, Liquor and Cannabis (AGLC) with sports betting solutions in partnership with NeoGames joint-venture NeoPollard Interactive (NPI).
Meanwhile, Aspire made its 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. Additionally , Pariplay secured a content aggregation deal with prominent South African operator SunBet.
“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 NPI revenue rose 38% from $10m to $14m. Total revenue from this segment stood at $28m, up 21% 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 (LEIA), providing instant games to the French, Danish, Swedish, Norwegian and Finnish lotteries, and an einstant 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 in the first of two votes.
Should shareholders vote in favour again at the second meeting, NeoGames will 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.”