NEW YORK, May 23, 2017 (GLOBE NEWSWIRE) -- Newgioco Group, Inc. (OTCQB:NWGI), a company providing regulated online and offline leisure gaming and wagering through licensed subsidiaries in Italy, announced today that it has filed its 2017 first quarter results with the U.S. Securities and Exchange Commission.
The Company reports an increase of approximately 88.8% in non-GAAP gaming turnover to $52.7 million for the first quarter of 2017, up from $27.9 million over the same period last year. This significant increase resulted in GAAP revenue growth of 121.8% to $3.9 million in Q1-2017, compared to $1.8 million in the same period last year.
Additional report highlights from Q1-2017 include:
- Cash grew sharply to $1.8 million, compared to $178,188 in Q1-2016;
- Total Assets nearly doubled to approximately $7.1 million, compared to $3.6 million in Q1-2016.
The Company also invested heavily in brand awareness aimed at customer acquisition and retention through sign-up bonuses and promotions, as well as advertising and trade shows which had an impact on the significant organic growth of our bet turnover. These business development expenses, combined with a higher than normal percentage of favorites winning their matches, a common theme that favored customers across the sports book market in Q1-2017, weakened earnings and contributed to an overall net loss of $842,166. The reported loss also includes a provision for income taxes on profits earned from our betting platform operations, as well as interest, financing expense and non-cash items.
“While most sports books in our catalogue favored customers in the first quarter, on a year-over-year basis we are quite pleased with the lift in our top end sales,” remarked company Chairman and CEO, Michele Ciavarella. “Our strategic objectives in 2017 remain on track as we added board independence in Q1 and expect to secure Italian certification on our ELYS betting platform in Q2. At that point, we expect to benefit from an increased pace in acquisition opportunities.”
About Newgioco Group, Inc.
Newgioco Group, Inc., together with its wholly owned subsidiaries, is a fully licensed and integrated online and land-based leisure gaming operator. The company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on our website www.newgioco.it as well as retail 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, lotto, online casino, poker, bingo, interactive games and slots, as well as owning and operating an innovative betting platform (www.odissea.at) providing both B2B and B2C bet processing. 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.