Newgioco Group, Inc. (“Newgioco” or the “Company”) (Nasdaq: NWGI), a global sports betting and interactive gaming technology company providing fully integrated, omni-channel sports betting software solutions, today provided an update on continuing operations amid restrictions due to the global outbreak of COVID-19.
In continuing our commitment to update investors and stockholders, the company is reporting that periodic sales have seen an overall decrease of approximately 20% reflected by non-GAAP gross gaming revenue (“GGR”) from approximately $1.92 million between February 1 and 25 to approximately $1.54 million between March 1 and 25, 2020. The largest decrease in GGR was approximately 42.7% on sports book due to the global suspension of almost all global sports and the closing of all land-based betting shops, while GGR of Casino, Poker and other-than-sports product lines increased 16.6% combined, with the largest increases coming from online Poker and Virtual Sports.
“We have taken steps to mitigate the impact of this unprecedented global crisis by implementing strategic plans meant to continue providing the highest level of service to our customers and operators while keeping our employees safe during this challenging and remarkable time,” stated Company Chairman and CEO, Michele Ciavarella. “We are happy to have maintained a manageable level in our diversified sales channels given the headwind caused by complete shutdown of global sports. Our objectives are to be prepared for re-opening our betting shops, putting our agents back to work and look forward to continuing normal operations along with the return of sports events once it is safe to do so.”
As previously reported, the Company’s administrative, technology, customer service and risk management offices are currently operating on a smart-work collaboration with all staff working remotely from home due to government imposed laws to help prevent the spread of COVID-19. The Company is complying with rules to furlough its employees and has not laid off any employees. The Company believes that as revenue from operations remains reasonably stable, it has sufficient available liquidity, coupled with cost reductions and available bank facilities to enable it to fund its current obligations for the foreseeable future. Additionally, the Company may have a variety of government backed financial initiatives available to assist with 70% of employee salaries upon their return to work, deferral of rent and other expenses, as well as offsetting costs related to agents that operate betting shop locations.
About Newgioco Group, Inc.
Newgioco Group, Inc., is a global leisure gaming technology company, with fully licensed online and land-based gaming operations and innovative betting technology platforms that provide bet processing for casinos and other gaming operators. The Company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on its website, www.newgioco.it as well as in retail neighborhood betting shops throughout Italy.
Newgioco offers clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots. Newgioco also owns and operates innovative betting platform software providing both B2B and B2C bet processing for casinos, sports betting and other online and land-based gaming operators. Additional information is available on our corporate website at www.newgiocogroup.com.
Investors may also find us on Facebook® and follow us on Twitter @NWGI_gaming.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements and includes statements regarding taking steps to mitigate the impact of this unprecedented global crisis, being prepared for re-opening our betting shops, putting our agents back to work, continuing normal operations, the return of sports events once it is safe to do so, our belief that as revenue from operations remains reasonably stable and having sufficient available liquidity, coupled with cost reductions and available bank facilities to fund current obligations for the foreseeable future, having a variety of government backed financial initiatives available to assist with 70% of employee salaries upon return to work, deferral of rent and other expenses, as well as offsetting costs related to agents that operate betting shop locations. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include our ability to take steps to mitigate the impact of this unprecedented global crisis, being prepared for re-opening our betting shops, putting our agents back to work and looking forward to continuing normal operations along with the return of sports events once it is safe to do so, belief that as revenue from operations remains reasonably stable, having sufficient available liquidity, coupled with cost reductions and available bank facilities to fund current obligations for the foreseeable future, having a variety of government backed financial initiatives available to assist with 70% of employee salaries upon return to work, deferral of rent and other expenses, as well as offsetting costs related to agents that operate betting shop locations, and the risk factors described in Newgioco’s Annual Report on Form 10-K for the year ended December 31, 2018 and our subsequent filings with the U.S. Securities and Exchange Commission, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events, except as required by law.
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