Newgioco Group Continues with Revenue Growth Trends: Stock Gains Strength

– Newgioco Group Reported 70 Percent YoY Growth in non-GAAP Betting Turnover
– The Company to Put Emphasis on its Retail Sales Channel
– The Company Stock Shows Strength with 80 Percent Growth in 12 Months

DEERFIELD BEACH, FL / ACCESSWIRE / June 21, 2018 / Newgioco Group (OTCQB: NWGI) has solidified its position in the international gaming sector. After capturing strong core operations in Italy, the company is now looking to increase its foothold in the US market. Several upcoming regulatory changes in many US states are also likely to spur Newgioco Group’s growth in the market. The company recently provided its second quarter corporate updates, which indicated that Newgioco Group continues with its growth pattern.

Newgioco Group provided corporate update for the second quarter of the year. The company reported steep incline in its non-GAAP betting turnover as it registered 70 percent growth on year over year basis. Its turnover for the first two months of the quarter stood at $66.7 million, up from $39.2 million it had reported for the corresponding quarter of the previous year. The company also diversified its revenue streams as it’s Multigioco subsidiary now accounts for 58 percent of its betting turnover. The subsidiary also posted the largest year over year gain in the form of 77 percent growth. Multigioco raked in $36.4 million worth of betting turnover, up from $20.6 million it had reported the previous year.

Newgioco Group turned in balanced growth across different sectors. Its retail sales grew 63 percent on year over year basis as the company earned $30.3 million from its land based sales in April and May. The corresponding figures for the previous year stood at $18.5 million. Similarly, its combined revenue also jumped 49 percent to touch $32 million figure, up from $21.5 million it had reported a year earlier. However, the company also saw its retail sales channel widely outperforming its online channel. The former showed 76 percent growth, in comparison to 24 percent growth shown by the online channel. The company is now planning to further boost its retail sales channel by increasing its distribution through the license renewal auction in Italy.

Newgioco Group also plans to expand its reach in the US, which has emerged as a top market destination for the business. Its plans may receive further fillip if the US goes ahead with its planned amendments to the regulations for legalizing sports betting. Several states have taken steps in this direction and Newgioco Group is all set to benefit from these changes. The company is also likely to benefit from improving consumer confidence in the US and EU.

Continued Improvement

Newgioco Group continued to maintain its robust growth rate in the second quarter as well. The company reported strong financial numbers for the first quarter of the year. Apart from reporting solid growth in its revenue, Newgioco Group also reported the addition of 5 new online operators to its portfolio. The addition was made late last year and is expected to provide major boost to the company’s top line. It is also looking to further promote its Odissea ”ELYS” platform in Italy and globally.

Newgioco Group also improved its financial position this year. In the first quarter, the company reduced its debt position by $570,000 while it refinanced additional $500,000 worth of debt for better terms and conditions. The revised conditions are expected to make the debt less expensive, adding to the company’s margins. The company also plans to move on to a senior stock exchange. This move will allow its stock to have more visibility as well as more liquidity in the market. The progress shown by the company this year proves that Newgioco Group is ready to grow its business in the international arena as well.

The current year has proved to be better than the previous year where the company was faced with several challenges, both related to its internal as well as external environment. However, Newgioco Group managed to surpass those hurdles and posted its first ever annual profit before taxes in 2017. The company achieved this feat despite booking substantial amount of expenses of certifying its ELYS platform during the first half of the year. It also managed to maintain robust liquidity position as it ended the year with $4.67 million in cash and near cash asset. The performance is especially impressive since the company is not engaged in a cash-heavy industry.

Stock Performance

The stock has shown strong growth in the past one year as it grew nearly 80 percent during the time period, widely surpassing broader market indices. The growth is likely to continue as the company makes new progresses on its operational front. The company also has conservative multiples compared to its peers. Its price to sales ratio stands at 1.5 times on trailing twelve months basis which is significantly below the average ratio for the gaming industry. This indicates that the stock has high potential to gain price in the coming months, making it a lucrative investment avenue for medium to long term investors.

Disclaimer:

Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by such statements. WFM, Inc. is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. For full disclosure, please visit: http://wwfinancial.com/legal-disclaimer/.

Contact:

Worldwide Financial Marketing, Inc.
http://wwfinancial.com/
Phone: 954.360.9998

SOURCE: Worldwide Financial Marketing, Inc.

ReleaseID: 503340