The regulated online and offline leisure gaming and wagering company, Newgioco Group, has reported significant increases in its Q1 2017 results.
Newgioco Group, Inc. has filed its 2017 first quarter results with the U.S. Securities and Exchange Commission reporting 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.
The company claims 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.
In addition during the same period, the report highlights that cash grew sharply to $1.8 million, compared to $178,188 in Q1-2016 and the company’s 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 included 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.”