Significant declines in web-based turnover led to revenue of $6.7m for Newgioco in the third quarter of 2019, a 14.7% decline, though the company narrowed its net loss for the period.
The business’s revenue came on a turnover of $115.9m, up 31.9% year-on-year, of which $46.5m was web-based (down 10.8%) and $69.5m land-based (up 94.0%).
Newgioco said the significant decline of web-based turnover was due to the fact that the third quarter of 2018 included the FIFA World Cup. Its increase in land-based turnover came due to efforts to grow that sector “aggressively”, it added.
After paying out $46.1m in land-based winnings and $62.1m in online winnings for a total of $108.2m, up 36.5%, Newgioco was left with gross gaming revenues of $7.7m, a 10.4% decline.
After taxes paid to the Italian Customs and Monopolies Agency (ADM), Newgioco was left with $6.6m in revenue, 15.2% less than in 2018. It received an additional $75,199 from commission and $95,250 from services for revenue of $6.8m, down 14.6%.
Newgioco paid $3.2m in selling expenses, down 40.6% year-on-year, while general and administrative expenses new to $3.3m. This left an operating profit of $340,204, a significant improvement on the $388,985 loss recorded in Q3 2018.
The supplier made another $32,864 in other income, but paid a further $1.1m in interest expenses, a sharp year-on-year increase.
It then recorded a $282,101 benefit from the settlement of liabilities, and a $125,000 gain on the value of marketable securities, leading to an overall pre-tax loss of $312,718, down 56.6%.
Newgioco paid $283,935 in tax for a net loss of $596,623, down 25.9%. After losing a further $212,009 on foreign currency exchange rates, Newgioco’s comprehensive loss was $808,633, down 37.5%.
Earlier this month (6 November), Newgioco signed a new sports betting deal in Washington DC, entering into a partnership with the Grand Central sports bar and Capo deli.
Under the agreement, Newgioco will provide ELYS platform for Grand Central to operate a sportsbook at its sport bar location in the Adams Morgan district and Capo deli site in Shaw.