Online lottery platform provider NeoGames enjoyed a revenue rise of 46.5% in Q1, while overall net income rose by 4.8% year on year, thanks in part to income from its NeoPollard joint venture.
NeoGames’ revenue totaled at $13.3m, a $4.3m rise from $9.1m in the first quarter of 2020.
However, expenses came to more than $11m, up 42.3%. Distribution expenses, at $2.6m, rose 108.8% year on year. Development expenses came to $2.2m, an 18.8% increase compared to Q1 2020.
Selling and marketing expenses dipped from $446,000 to $278,000, a 37.6% decrease compared to the previous first quarter. Administrative and administrative expenses, at $2.6m, and depreciation and amortization, at $3.5m, rose 71.6% and 23.9% year on year respectively.
In total, expenses amounted to $11.1m, an increase of 43.3% compared to the first quarter of 2020. This left the operating profit at $2.1m., a 72.7% rise year on year.
Further costs of interest on funding, at $1.1m, and finance expenses, at $224,000, brought the profit down to $763,000. Income taxes expenses, at a loss of $657,000, further reduced profit to $106,000.
But NeoGames’ share in profits from its NeoPollard Interactive (NPI) joint venture with Canada’s Pollard Banknote came to $3.8m. The joint venture made a total of $8.2m in revenue.
After this income, NeoGames was left with overall net income at $3.9m, an increase of $4.8m compared to Q1 2020.
In addition, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came to $9.7m, a 147.8% increase compared to the previous first quarter.
“These results further demonstrate the strength of our comprehensive offering across technology, games and services, which fuels our ability to drive consistent growth across all our accounts.” said Moti Malul, chief executive officer of NeoGames.
“We are seeing solid player retention rates, allowing us to build off of the momentum from the past year, as the major economies and countries where we operate re-open.”