NeoGames has hailed the positive contributions that Aspire Global made to its topline in 2022 after closing a deal to buy the games company in June.
Publishing its 2022 financial results, NeoGames declared revenues of $210.2m, up 49% year-over-year from 2021’s $84.5m. This was driven by the Aspire Global transaction as well as growing its share of NeoPollard interactive revenues.
Looking at Aspire’s 2022 revenues, the firm generated $207m in revenue, up 19% YoY, but contributed $112.1m to NeoGames’ results as the deal was completed halfway through the year.
As well as an increase in revenue, the Aspire deal helped NeoGames boost its profitability through operations as its adjusted EBITDA grew 63.2% YoY to $54.5m, compared to $33.4m in 2021.
However, the firm did make a net loss of $9m in 2022, driven by the amortization of intangible assets related to the Aspire Global transaction.
Despite this, NeoGames sees a positive future across multiple verticals of sports betting, gaming, and lottery.
Moti Malul, Chief Executive Officer of NeoGames, said: “We are proud of the tremendous progress we made during 2022, further solidifying our ilottery leadership position in a continually expanding market. A record year in ilottery was punctuated with another record quarter. In addition, we made some truly transformational strides advancing our strategic goals.
“We significantly evolved our business through our acquisition of Aspire Global, expanding beyond our position as a leader in global ilottery solutions, and propelling us to becoming a global leader in providing technology and content solutions across ilottery, online sport betting and igaming.”
Q4 saw NeoGames continue with the expansion of the Pariplay brand, including its flagship Fusion aggregation platform, signing eight deals during the final quarter of 2022 including a landmark partnership with Betway in the US.
Meanwhile, its sportsbook brand BtoBet took its online sports betting solution live in Mexico with the local operator PickWin, building on its relationship with the operator via a deal with its Pariplay brand.
NeoGames’ revenue in Q4 reached $83.2m including NPi share, up 291% YoY thanks to the Aspire deal boosting the topline. Aspire contributed $54.8m towards this, representing a 12.4% growth, while, ilottery turnover rose by 33% YoY a quarterly record of $28.4m.
Adjusted EBITDA for Q4 was $18.1m, up 129% from Q421’s $7.9m. However, the firm did make a quarterly net loss of $0.8m though this was reduced from a loss of $3.6m in Q421.
Moving forward, NeoGames has begun 2023 with a big statement move, entering the Brazilian market via Loteria Minerias, the state lottery for the second largest state, Minas Gerais.
Via a partnership with Intralot do Brasil, Neogames will provide the lottery with a sports betting platform for both retail and online sports betting.
Finally, NeoGames issued its 2023 guidance anticipating revenues of $235-255m, reflecting its positive outlook from Aspire Global as well as its sports betting and lottery divisions.
Malul added: “Each year the global gaming industry tends to expand further into the online channel, and each year the needs of our customers evolve to require a more integrated approach across lottery, gaming and sports betting.
“In our view, we are well positioned as a leader to provide our customers, both regulated state lotteries and private gaming operators, a leading, full suite of solutions to meet all their digital gaming needs.
“We believe these achievements on top of those accomplished in 2022 will help position us to achieve our objectives of sustainable accretive growth and value for our shareholders.”