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, is pleased to announce a robust increase in sports betting handle, a non-GAAP measurement that represents wagers placed by customers, as sports events return in Europe and restrictions caused by the COVID-19 pandemic continue to ease.
Since the onset of the COVID-19 pandemic disrupted regular season sporting events around the world, the Company is now experiencing a strong rebound in sports betting handle in our Italian retail operations. Betting handle has more than doubled from approximately $0.6 million in April 2020 to approximately $1.3 million in May 2020 with the return of the German soccer league Bundesliga on May 16, 2020. The Company remains optimistic that betting handle and revenue could continue to normalize over the coming weeks with the Italian Soccer Championship scheduled to restart on June 15th with the Italian Cup followed by Serie A matches and the Spanish league La Liga having restarted on June 11th. Other leagues that are expected to start are the Italian Serie B and the English Premier League both restarting on June 17th.
“Through unprecedented challenges caused by the COVID pandemic, our operations team in Italy and Austria demonstrated remarkable resolve and courage to maintain stability and sustain cash on hand and betting reserves,” stated Michele (Mike) Ciavarella, Newgioco’s Chief Executive Officer. “The results reflected in our rebounding performance within Europe is a prime example of the importance of geographic diversification and product diversification of our business model. Revised league play schedules could likely mean that thousands of matches will be played over the next few months, which despite the three month lockdown from March through May gives us great confidence that we can achieve our stated performance goals through the remainder of 2020. Additionally, the restart of North American sports events such as Nascar Racing, golf events and leagues such as the NHL, NBA along with several others are contemplating a start within a few months would represent key developments in returning to normal operations.”
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.
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, among other aspects, statements regarding the Company’s optimism that sales and revenue could continue to normalize over the following months, the Italian Soccer Championship scheduled to restart on June 15, 2020, the Italian Serie B and English Premier League restarting on June 17, 2020, the revised league play schedules could likely mean that thousands of matches will be played over the next few months, confidence that we can achieve our stated performance goals through the remainder of 2020 and the restart of North American sports events within a few months would represent a key development in returning to normal operations. 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, among others, the Company’s sales and revenue continuing to normalize as expected, the Italian Soccer Championship restarting as expected on June 15, 2020, the Italian Serie B and English Premier League starting as expected on June 17, 2020, revised league play schedules meaning thousands of matches being played as expected over the next few months, confidence in achieving our stated performance goals as expected in 2020, the restart of North American sports events within a few months as expected would represent a key development in returning to normal operations, the duration and scope of the COVID-19 outbreak in the US, including the impact to the state and local economies and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and its 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 the Company undertakes 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.