Newgioco Group Reports 2018 First Quarter EarningsPosted: Updated:
NEW YORK, NY / ACCESSWIRE / May 15, 2018 / Newgioco Group, Inc. (OTCQB: NWGI) a betting technology company providing regulated sports betting and leisure gaming products and services through licensed subsidiaries in Europe, announced today 2018 first quarter results reflecting its fourth consecutive quarterly profits and continuing the Group’s strong performance since launching its leading-edge betting platform.
“During the first quarter of 2018, Newgioco delivered sharp growth in both online and offline sales channels, particularly in the sports betting vertical. The company performed exceptionally well as recently acquired online operators were integrated onto our ELYS betting platform,” stated Company Chairman and CEO Michele Ciavarella. “We expect demand for our innovative software to remain very strong in Italy, our core market, with ELYS being a key driver for both acquisitions and organic growth outside of Italy through 2018.”
Mr. Ciavarella also commented that, “The Company is highly optimistic about its international expansion plans with the US Supreme Court ruling to strike down the PASPA, a federal law prohibiting states from authorizing or licensing sports betting. Effectively, this decision opens the door to regulate legalized sports betting in the United States, a $150 billion-dollar sports betting market that we expect will significantly contribute to our top-line growth and profitability for years to come. Newgioco is well positioned to enter the US market with the strength of one of the newest and most advanced betting technologies in the world.”
For the three months ended March 31, 2018, the Company reported record earnings before income tax of $1,013,713 resulting in a net profit of $0.01 per share. Compared to the same period in 2017, transactional sales of betting turnover almost doubled from $52.7 million to $90.6 million, while gross profits more than doubled from $3.9 million to $8.6 million. Remarkably, the Company generated this growth on an organic basis with all product verticals increasing, but particularly sports betting, with solid profitability and record operating cash flow in the first quarter of 2018. These strong results put the Company on pace to exceed its 2018 projected transactional sales target of approximately $300 million.
Additional report highlights for the three months ended March 31, 2018 include:
Cash reserves grew by $720,351 from $6.5 million
to $7.2 million;
Total Assets grew from approximately $12.2
million to $13.1 million;
GAAP revenue reached $8.6 million compared to $3.9
million for the same period in 2017, an increase of 121.7%;
Non-GAAP transactional sales of betting turnover
reached $90.6 million compared to $52.7 million for the same period in 2017, an
increase of 71.77%.
Additional noteworthy developments during the first quarter of 2018 was the previously announced roll out of phase one of our Big Data analytics software with artificial intelligence and business intelligence platforms along with our NGPay payment gateway, as well as the elimination of high interest convertible debt as the Company continues to execute on its cost reduction initiative.
About Newgioco Group, Inc.
Newgioco Group, Inc., together with its wholly owned 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.
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.
Investor Relations Contact
Newgioco Group, Inc.
SOURCE: Newgioco Group, Inc.
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