NEW YORK, Nov. 28, 2016 (GLOBE NEWSWIRE) -- Newgioco Group, Inc. (OTCQB:EMGL) a company providing regulated online and offline gaming and wagering through licensed subsidiaries in Italy, announced today that it has filed its 2016 third quarter results with the U.S. Securities and Exchange Commission.
For Q3 2016, the company reports income before tax of $267,125 and after tax income of $36,115, representing a profit of $0.001 per share, compared to losses reported over each prior period during the 2-year development phase. The net result for the quarter also includes a non-cash interest charge of $168,890 as well as an income tax provision of $220,275. A marked improvement in non-GAAP Gaming Turnover from approximately $50 million to $80 million for the nine months ended September 30, 2016, compared to the previous year, sets a pace to exceed $100 million in annual betting turnover for the first time in company history.
Additional report highlights include:
- Cash in the bank grew substantially from $157,363 to $1.68 million;
- Total Assets doubled from approximately $3.6 million to $7.1 million;
- Non-GAAP gaming turnover reached $24.93 million for the three months ended September 30, 2016, an increase of 42.58% compared to the same period in 2015;
- GAAP revenue reached $2.6 million for the three months ended September 30, 2016, compared to $1.1 million for the same period in 2015, an increase of 133%.
The addition of approximately 110 land-based locations during the third quarter of 2016 validated our business theory by resulting in scaled up profits compared to similar betting metrics in our online vertical. However, despite significant improvement in almost all business metrics, market capitalization suffered due to lack of liquidity in the company’s common stock.
“Along with many firsts for our company, the third quarter of 2016 marked the completion of the first stage of our operations milestones that included the integration of the proprietary betting platform and large build-out of our land-based footprint. Earnings reported during this period indicate a key inflection point by reaching after tax profit for the very first time,” stated company Chairman and CEO, Michele Ciavarella. “Compared to previous quarters, our stabilizing enterprise-wide economics combined with leveling off corporate expenses demonstrates that our business strategy was effective and is consistent with our growth model. Aggregate pre-tax earnings from gaming operations exceeded $1 million for the first time in our history and the integrated betting platform now allows us to compete for a significant amount of market share by capitalising on the Italian license auction and expansion into any regulated global gaming market.”
Mr. Ciavarella further reflected on employees by remarking, “Indeed we don’t want to overlook our highly motivated and committed staff, management and directors for accomplishing such a superb commercial task on nothing less than a thin budget, limited internal resources and powerful headwinds from a skeptical and challenging financial market. Our highly-dedicated team is intensely focused on seizing on the explosive opportunity in the Italian leisure betting space to scale-up from a strong foundation and look to drastically improve profits in 2017.”
About Newgioco Group, Inc.
Newgioco Group, Inc., together with its wholly owned subsidiaries, is a fully licensed and integrated online and land-based gaming operator. The company conducts its business primarily through our internet-based gambling and sports betting platform under the registered brand Newgioco on our website www.newgioco.it as well as land-based neighborhood betting shops situated throughout Italy.
The company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots. Additional information is available on our corporate website at www.newgiocogroup.com.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "forecast," "plans," "intends," "potential" and similar expressions. These statements reflect the company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements.