NeoGames Announces Third Quarter 2021 Results

 NeoGames S.A., a technology-driven provider of end-to-end iLottery solutions, announced today financial results for the third quarter ended September 30, 2021.

Moti Malul, Chief Executive Officer of NeoGames, said: “We continue to position ourselves well for the long-term, investing in our technology solutions and our operational capabilities and executing on our business plan as a global leader of iLottery solutions for national and state-regulated lotteries. This quarter, we have seen growth in several of our accounts with Virginia and North Carolina in the US continuing their good performance, while in Europe Sazka’s online penetration has ramped up to represent a significant percentage of their total GGR. Subsequent to quarter end, our Games Studio continued its expansion with the launch of our suite of premium eInstant games with Lottomatica in Italy. We also continue to invest in PlayAlberta, as we launched draw games late in the second quarter, and launched sports betting in August. On the state authorization front, momentum has progressed in the U.S., with Connecticut and West Virginia in various stages of public procurement processes, which we see as a positive step towards further market expansion. All of these highlights reflect our ability to capitalize on our expanding market opportunity and cement NeoGames as the leader in the industry.”

Third Quarter 2021 Financial Highlights

• Revenues were $11.9 million during the third quarter of 2021, compared to $13.1 million during the third quarter of 2020. In addition, the Company’s share of NPI revenues was $8.3 million during the third quarter of 2021, compared to $2.5 million during the third quarter of 2020, representing an increase of 233.2% year-over-year. The total of revenues and the Company’s share of NPI’s revenues was $20.2 million during the third quarter of 2021 compared to $15.6 million during the third quarter of 2020, representing an increase of 29.7% year-over-year.
• Comprehensive income was $1.5 million, or $0.06 per share, during the third quarter of 2021, compared to comprehensive income of $2.5 million, or $0.11 per share, during the third quarter of 2020, .
• Adjusted EBITDA¹ was $7.5 million during the third quarter of 2021, compared to an Adjusted EBITDA of $7.8 million during the third quarter of 2020 representing a decrease of 3.8% year-over-year.
• Network Net Gaming Revenue (“NGR”)² was $179 million during the third quarter of 2021, compared to $126 million during the third quarter of 2020, representing an increase of 42.1% year-over-year.

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¹ Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures and Key Performance indicators” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
² Non-GAAP Financial Measures and Key Performance indicators” for additional information about this key operating metric.

Third Quarter 2021 Business Highlights

• Rolled out progressive jackpot instant content with three customers representing an innovative development for iLottery players across our platform.
• VirginiaiLottery program continued its growth performance, with significant growth each quarter it has been live since launch in the third quarter of 2020.
• Launched online sport betting in Alberta, which follows the recent launches of Live Dealer and draw-based games in previous quarters.
• Went live with Ceasars Entertainment in Arizona as part of their Liberty platform, which is now live in 10 states with an online sport betting and/or iGaming offering.
• Subsequent to the quarter end, launched the Company’s suite of premium eInstant games with Lottomatica, further expanding NeoGames’ footprint in the Italian lottery market.
• Completed an underwritten public offering of ordinary shares including full exercise of the underwriters’ option to purchase additional ordinary shares.

Guidance

The Company is raising its fiscal year 2021 Revenue and Share in NPI Revenues Interest Guidance to between $82.5 million and $84.5 million, compared to the prior range of between $75 million and $79 million, representing a 41% increase year-over-year on the midpoint.

Conference Call & Webcast Details

NeoGames will host a live conference call and audio webcast on Thursday, November 11, 2021 at 8:30 a.m. Eastern Time, during which management will discuss the Company’s third quarter results and provide commentary on business performance. A question and answer session will follow the prepared remarks.

The conference call may be accessed by dialing (833) 301-1152 for U.S. domestic callers or (914) 987-7393 for international callers. Once connected with the operator, please provide the conference ID of 6643079.

A live audio webcast of the earnings conference call may be accessed on the Company’s website at ir.neogames.com. The replay of the audio webcast and accompanying presentation will be available on the Company’s investor relations website shortly after the call for a period of 30 days.