Newgioco Group $NWGI Fortifies its Position with New Acquisitions, Product Launch

12.20.2017
  •   Newgioco announced a number of important acquisition deals, expanding its reach.
  •   Newgioco reported robust financial numbers for the third quarter.
  •   Newgioco boosted its product portfolio by launching new sports bet mobile app.

Newgioco Group Inc. (OTCQB: NWGI) operates land based and web based gaming services and offers a wide variety of online and offline lottery and casino games. This Delaware registered company has global presence with special focus on Italy and Austria. The company announced a number of new acquisitions and also recently reported strong quarterly numbers. These developments are likely to provide a good boost to its stock price.

The company further consolidated its position in the market as it announced the acquisition of an online and retail gaming business in Italy. The acquisition will boost the company’s infrastructure portfolio by adding 50 new webshop locations. It also gained 500 registered online customers throughout Italy. Pursuant to the company’s enhanced network, Newgioco plans to open a new administrative office in Napoli. The new office will help the company in boosting its presence in one of the most prominent sports betting centers in Italy. It will also be conducive to managing the company’s network in southern Italy. Newgioco expects the integration of the newly acquired entity to be completed by the end of the second quarter of 2018. The acquisition is expected to have accretive impact on the company as the acquired group reported $25 million in its betting turnover, resulting in annual revenue of $1.5 million. The volume represents nearly 9 percent of Newgioco’s current revenue. The company management said that the acquisition will help it in achieving the 2018 target of reaching $250 million in betting turnover. It will also help in achieving synergies as the acquired group’s operations may easily dovetail into Newgioco’s existing infrastructure.

The acquisition follows another deal announced at the beginning of the month. The deal involved collaboration with an online gaming network, giving the company a new lead in the eastern coastal region of Italy. It will also push up the use of Newgioco’s mobile platforms. The deal added about 300 registered players to its fast-growing client registrations and 30 extra webshop retail stores through the Puglia and Teramo regions in Italy.

While the company has expanded its network in Italy with the above acquisition, it is also looking to crack the market in the US as well. It recently inked a new collaboration with a professional poker group, adding over 300 players to its registered client database. The new collaboration is expected to generate up to $500,000 per year in table rake. It will be particularly beneficial to the company’s non-sports bet segment. The deal will bring Matthew Scuffi, a prominent professional player, as a brand ambassador for the company. In his new role, Scuffi will wear Newgioco colors to a large number of poker events throughout the world, raising the company’s brand profile. The deal also validates the deployments of the Skill Game vertical on the company’s betting Platform. The company is also hopeful about the promotion of its Odissea betting platform in the US.

Newgioco’s efforts are yielding good results as is evident from its third quarter results. The company reported a record earnings before income tax of $543,629 which translated to a profit of $0.01 per share. For its third quarter, the company also almost doubled its Betting Turnover to $48.1 million from $24.9 million it had reported for the corresponding quarter of the previous year. The company’s gross profit also jumped from $2.6 million to $5.1 million. Apart from these metrics, Newgioco also grew is cash reserves from $1.68 million to $3.19 million while its total assets increased from $7.15 million to $8.85 million. The company’s financial results are a good indication of Newgioco’s future prospects. During the third quarter, the company made transition to its new and more powerful Odissea ELYS betting platform, bringing more efficiency and innovation on board.

Newgioco is consistently developing new products. It recently released its mobile betting app on the new ELYS betting platform. The new app aims to provide better user experience to the sport bet players. The company has already released its apps for casino and poker players in November this year. This is an interesting development for the company as it derives 30 percent of its gross gaming revenue from its mobile business sales. The company aims to increase the mobile share to 45 percent in 2018. These apps will let the company reach its set target and growth its revenue further. Luca Pasquini, Chief Technology Officer of Newgioco added, “Considering customer demand for improved performance, speed, and ease-of-use for sports betting on mobile, we have committed a dedicated team of engineers to this department and look forward to launching several innovative, market-leading features in the very near future.” The company stock may see good traction in the coming months as Newgioco goes ahead with its development of the mobile apps.

 

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