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Newgioco reaps benefits of gaming revenue surge and turns profit from operations in 3Q
18th November, 15:01Newgioco Group Inc (OTCQB:NWGI), the global gaming technology group, saw its gaming revenue pick up in its most recent nine-month reporting period and turned a profit from operations in the third quarter, thanks to a surge in sports betting.
In the nine months until the end of September, the Toronto company's gross gaming revenue jumped to $28.3 million, nudging up from $27.4 million in the year-ago quarter.
Another bright spot was Newgioco's net profit from operations, which came in at $0.34 million in the third quarter compared to a loss of $0.39 million in the previous quarter.
In a statement, CEO Mike Ciavarella, hinted that the company's return to a net profit from operations will provide an engine to drive its momentum into the fourth quarter.
READ: Newgioco Group poised with platform, technology and experience to break into global markets
On top of this, Ciavarella said Newgioco is in reach of its goal of hitting $500 million in gaming handle this year after posting $352.2 million in total handle in the first nine months of the year.
"Our 2019 third quarter results were stronger than expected considering there were no major summer soccer events that traditionally drive our European sports betting operations through the second and third quarters of each year," said Ciavarella.
Ciavarella has been zeroing in on curtailing Newgioco's expenses and restructuring its management team and board. Another victory was the filing of a S-1 statement, which will pave the way for a NASDAQ listing.
Other achievements notched included the company's move to grow its Italian betting operations and add two new retail customers in Washington DC - Handle 19 Inc and Grand Central LLC, which both operate retail sports bars and sandwich shops. The company also succeeded in recruiting Kevin Slicker to spearhead the development of its US platform design.
The company's net loss in the first nine months of the year swung to $5.4 million, which included $3.6 million in interest expense, compared to $1.3 million in the year-ago period.
Toronto-based Newgioco conducts its business primarily through an internet-based betting distribution network on its website, as well as in retail neighborhood betting shops throughout Italy.
It offers a suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots.
The group also owns and operates innovative betting platform software providing both B2B and B2C bet processing for casinos, sports betting and other online and land-based gaming operators.
Newgioco shares closed up 18.18% to hit US$0.39 by the close of trade on Friday.