NeoGames, a leading provider of iLottery solutions, has released its Q2 2023 financial report, showcasing robust revenue growth for the first half of the year. While the company reported a net loss for Q2, its revenue and adjusted EBITDA figures demonstrate significant improvement compared to the previous year.
Q2 2023 Highlights:
NeoGames recorded a net loss of $7.8 million for Q2 2023.
The company reported net revenue of $48 million, marking substantial growth compared to Q2 2022’s $21 million.
Gross revenue for the quarter reached $57 million.
NeoGames reduced its loss from operations to $9.1 million, an improvement from Q2 2022’s $14.5 million loss.
H1 2023 Performance:
NeoGames achieved total revenue of $97.4 million for the first half of 2023, a remarkable three-fold increase from H2 2022’s $34.3 million.
Adjusted EBITDA for Q2 2023 reached $18 million, representing a 75% increase compared to Q2 2022’s $10.3 million.
H1 2023 adjusted EBITDA stood at $38.2 million, significantly higher than H1 2022’s $18.8 million.
Net Loss Trends:
Despite the overall positive performance, NeoGames reported a net loss of $7.8 million for Q2 2023, compared to $13 million in Q2 2022.
The H1 2023 net loss was $8.6 million, showing improvement from H1 2022’s $13.8 million loss.
Market Response:
NeoGames’ stock price remained steady until May 12, 2023, at $12.84, before surging to $27.17 on May 15. It has maintained this higher valuation since.
The price surge in May was a result of NeoGames’ acquisition by Aristocrat for $1.2 billion, announced on the same day.
At the time of reporting, NeoGames’ share price stands at $27.05, with a yearly high of $27.65 recorded on July 20.
NeoGames’ Q2 2023 report highlights robust revenue growth and improved EBITDA, showcasing the company’s financial strength. Despite a net loss, the overall performance demonstrates NeoGames’ resilience and potential for future success, particularly following its acquisition by Aristocrat. The acquisition has significantly influenced NeoGames’ stock valuation, reflecting investor optimism about the company’s prospects.