NeoGames took ownership of Aspire Global in an US$412.2 milion deal that completed in June 2022, with Aspire Global now operating as a subsidiary of the business.
While the acquisition incurred additional expenses for NeoGames, pushing the business to a net loss for the year, the deal had a significant impact on revenue in 2022. Revenue more than trebled year-on-year, despite Aspire Global having only becoming part of the business halfway through the year.
NeoGames chief executive Moti Malul said the acquisition and performance of the wider business in 2022 means the group is well-positioned to achieve further revenue growth in 2023.
“We are proud of the tremendous progress we made during 2022, further solidifying our ilottery leadership position in a continually expanding market,” Malul said. “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.”
“During 2022, we grew revenue across all business lines, and we believe that we remain well-positioned to continue to deliver profitable growth into 2023 and beyond.”
Fourth quarter
Analysing NeoGames’ performance and beginning with the fourth quarter, revenue for the final three months of 2022 amounted to US$69.2m, an increase of 462.6% on the previous year.
Of this total, the majority (US$54.8m) came from Aspire Global, while the remaining amount was generated by NeoGames’ existing ilottery business.
The group said adjusted EBTIDA for the quarter rocketed by 129.1% to US$18.1m.
Full year
Turning to the full year and revenue jumped 228.1% from US$50.5m in 2021 to US$165.7m.
Aspire Global contributed US$112.1m for the period from 16 June, the date that NeoGames officially took ownership of the business. On a full year pro forma basis, revenue at Aspire Global reached US$207.0m.
The group also noted that adjusted EBITDA improved by 63.2% to US$54.5m.
“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,” Malul said.
“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.”
Source: iGB
