NeoGames Announces First Quarter 2021 Results

NeoGames S.A., a technology-driven provider of end-to-end iLottery solutions, announced financial results for the first quarter ended March 31, 2021.

Moti Malul, Chief Executive Officer of NeoGames, said: “We are pleased to kick off 2021 with a strong first quarter, posting Revenue and Adjusted EBITDA growth of approximately 114% and 148%, respectively. We continue to benefit from our recent launches in Alberta and Virginia, which added to the strong performance across the majority of our markets. Results also benefitted from the double jackpot run in the U.S., which continued into January.

“We believe the iLottery growth experienced over the past year has positioned us well for further success. We are seeing solid player retention rates, allowing us to build off of the momentum from the past year, as the major economies and countries where we operate re-open. These results further demonstrate the strength of our comprehensive offering across technology, games and services, which fuels our ability to drive consistent growth across all our accounts. We also remain confident and convinced of the untapped potential for the iLottery industry across the globe, and particularly in the U.S. where we are the market leader.”

First Quarter 2021 Financial Highlights

• Revenues were $13.3 million during the first quarter of 2021, compared to $9.1 million during the first quarter of 2020, representing an increase of 46.5% year-over-year. In addition, the Company’s share of NPI revenues was $8.2 million during the first quarter of 2021, compared to $1 million during the first quarter of 2020, representing an increase of 736.5% year-over-year. The total of revenues and the Company’s share of NPI’s revenues was $21.5 million during the first quarter of 2021 compared to $10.1 million during the first quarter of 2020, representing an increase of 113.9% year-over-year.
• Comprehensive income was $4.0 million, or $0.16 per share, during the first quarter of 2021, compared to loss of $0.9 million, or $0.04 per share, during the first quarter of 2020.
• Adjusted EBITDA was $9.7 million during the first quarter of 2021, compared to an Adjusted EBITDA of $3.9 million during the first quarter of 2020, representing an increase of 147.9% year-over-year.¹
• Network NGR was $195.8 million during the first quarter of 2021, compared to $68.7 million during the first quarter of 2020, representing an increase of 184.8% year-over-year.¹

First Quarter 2021 Business Highlights

• On February 22, 2021, the Company announced the launch of eInstant games with Austrian Lotteries. This expansion of NeoGames Studio brings a portfolio of successful, market-proven games onto the Austrian Lotteries online gaming site, enhancing the gaming experience with the objective of growing the number of players.
• In Virginia, the Company continues to observe higher and faster revenue growth rates, fueled by the conversions of players into eInstant games at an accelerated rate post the double jackpot.
• In Canada, after two full quarters of operations, revenues with our customer in Alberta have exceeded original expectations. Playalberta.ca, which is the only regulated iLottery and iGaming website in the province, continued to perform stronger than anticipated. During the quarter, the Company enhanced the website with the introduction of Live Dealer and is beginning to implement the draw-games vertical with an expanded range of games.
• A double jackpot run in the U.S. during January led to a significant influx of revenues and players. Those players continue to play on the Company’s platforms and games providing incremental revenue during the first quarter.
• Continued to roll out new game content, including an innovative Raffle game in Michigan during the first quarter, with plans to further implement across other customers.

Guidance

The Company is raising its fiscal year 2021 Revenue and Share in NPI Revenues Interest Guidance to between $73 million and $77 million compared to the prior range of between $65 million and $69 million.