NeoGames’ CEO, Moti Malul, expressed satisfaction with the company’s iLottery growth in the US following an increase in their Q3 earnings. This positive news comes at a crucial time as the provider is moving towards finalizing its acquisition by Aristocrat Leisure.
Malul confirmed that NeoGames is making progress towards completing the acquisition deal with Aristocrat and expects it to be finalized in the first half of fiscal year 2024. Aristocrat had agreed to pay $1.20bn to acquire NeoGames back in May, and since then, both NeoGames’ board and shareholders have shown overwhelming support for the deal.
In their Q3 financial update, NeoGames reported an adjusted earnings increase of 13% year-on-year, with total earnings amounting to $19.9m. The company did experience a decrease in sales due to a change in accounting from gross to net revenue in their Aspire Core division, which resulted in a $10m decline to $63.3m year-on-year. However, NeoGames stated that like-for-like figures would have shown an 11.5% revenue increase.
Despite these changes, NeoGames was able to reduce its net loss in Q3 from $4.4m to $3.6m, contributing to a sharper increase in adjusted earnings in the first nine months of the year from $36.4m to $58.0m.
Malul emphasized the company’s iLottery business, particularly in the US, where there has been significant expansion. NeoGames’ joint venture, NeoPollard Interactive (NPI), has expanded its presence in the US through deals with the West Virginia Lottery and the North Carolina Education Lottery, increasing iLottery revenues to $14.4m in Q3. Additionally, the company’s share in NPI revenues grew by 53.3% to $17.0m from $11.1m in the quarter.
Despite these positive changes and the expected completion of the acquisition deal with Aristocrat, NeoGames does not believe there will be any significant impact on its ongoing operations in Israel.