Newgioco Group Inc (OTCQB:NWGI), the global sports betting and gaming tech firm, told investors it was on pace to meet its guidance for C$500 million total betting handle for 2019.
That's the total amount of money in bets placed with the firm, which for the half year to June 30 came in at C$236.2 million, up 23.9% compared to C$190.6 million in the same period a year earlier.
Gross gaming revenue for the half year came in at C$20.6 million, which was 9.5% higher than the C$18.8 million seen in 2018. The firm makes most of its revenues in Italy and noted that it had doubled its retail distribution in the country over the last six months.
The company's betting platform ELYS provides both B2B (business to business) and B2C (business to consumer) bet processing. It can manage tens of thousands of pre-match events and more than 200 live events.
Notably today, the group said its online betting channel had grown at a double-digit rate.
"We are quite pleased with the continuing operational performance of both our retail operations and the rapid adoption of our leading-edge Elys betting platform," said CEO Michele (Mike) Ciavarella in Tuesday's statement.
"We also experienced corporate dynamics with key leadership changes along with a commitment to our stockholders to achieve profitability on the investments we made since the repeal of PASPA in the US.
"To this end, we continue to grow our total gaming handle, generating 23.9% year-to-date growth, significantly exceeding $200 million, and putting us on pace to achieve our outlook of $500 million for the full year."
The company boss noted that the lack of major European sports had impacted its land-based sports betting volume during the second quarter, particularly compared to last year which benefitted from the soccer World Cup.
"However, the European Soccer season has restarted, which should benefit the second half of our year as it has in the past, especially considering our expanded presence in Italy," he added.
Net loss for the six months was C$4.8 million versus a reclassified net loss of C$0.48 million last year, the increase reflecting an increase in general and administrative (G&A) expenses mainly due to increased payroll expenses, professional fees and discretionary spend on gaming related trade shows and conferences, the group said.
These expenses have been curtailed with effect from May this year, the group said.
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