Published: March 10, 2024

NeoGames announced financial results for the fourth quarter and year ended December 31, 2023

NeoGames, a technology-driven provider of end-to-end iLottery and iGaming solutions, announced today financial results for the fourth quarter and year ended December 31, 2023.

Full Year 2023 revenues and share of NPI revenues interest total $254.6 million up 21%.

Net Loss of $18.3 million and Adjusted Net Income, after taking effect of the amortization of Aspire intangibles, was $12.8 million. Full Year 2023 Adjusted EBITDA total $76.2 million, an increase of 39.8% year-over-year.

iLottery revenues were $14.4 million during the fourth quarter of 2023, compared to $14.5 million during the fourth quarter of 2022, representing a decrease of (0.4)% year-over-year. In addition, the Company’s share in NPI revenues was $17.2 million during the fourth quarter of 2023, compared to $14.0 million during the fourth quarter of 2022, representing an increase of 22.9% year-over-year.

The total of NeoGames’ iLottery revenue plus the Company’s share of NPI revenues during the fourth quarter of 2023 was $31.6 million, up 11.1% year-over-year, primarily driven by continued positive growth trend across most major accounts as well as by very strong performance of new game launches by NeoGames Studio.

iGaming revenues were $33.4 million for the fourth quarter of 2023. These figures reflect accounting for the majority of Aspire Core revenues on a net basis compared to historical figures which were prepared on a gross basis, prompted by new commercial terms in certain Aspire Core contracts which went into effect on January 1, 2023.

If iGaming revenues had been accounted for on a gross basis for the Aspire Core, total revenue would have been $63.7 million for iGaming primarily driven by continued growth in Games and Sports business lines, partially offset by a slowdown in Aspire Core revenues due to regulatory changes in the United Kingdom and a temporary pause in operations in Germany prior to the Company recently securing its local license to operate, which would have reflected 16.2% year-over-year growth when measured in reporting currency.

Adjusted EBITDA¹ was $18.2 million during the fourth quarter of 2023, compared to $18.1 million during the fourth quarter of 2022, representing an increase of 0.4% year-over-year. Adjusted EBITDA results slightly increased during the quarter compared to the prior year, mainly due to good performance of the iLottery and the sports business lines, offset primarily by the Aspire Core business due to several factors related to the adaptation of regulatory changes as well as changes in partner mix.

Moti Malul, Chief Executive Officer of NeoGames, said: “We are very pleased with the progress we made during the fourth quarter and during the entire year of 2023, progressing our strategic goals and working to complete our merger with Aristocrat Leisure, which we announced last May. We continue to see strong growth across our business lines, as three of our four segments, including iLottery, Games, and Sports, all demonstrated strong double-digit growth in 2023.

https://neogames.com/neogames-announces-fourth-quarter-and-full-year-2023-results/

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