Baystreet.ca – Newgioco Group (NWGI) Shows Strong Potential to …



Newgioco Group recently finalized two major acquisitions including the betting technology of Odissea GmbH

The company is well established in Italy, looking to expand in the US

Newgioco Group has posted consistent growth in the past and is expected to perform well

Newgioco Group Inc. (OTC:NWGI) is engaged in the business of operating land-based and web based leisure gaming services offering a wide variety of online and offline lottery, sports betting and casino games. Newgioco Group has recently revolutionized the gaming segment by introducing state-of-the-art betting software and is offering regulated online and offline gaming products and sports wagering through its licensed subsidiaries. The company currently runs a retail network of over 1,200 neighborhood betting shops and four licensed online gaming websites. The company is a Delaware registered corporation with global operations including countries such as Austria and Italy. Newgioco Group has strong pedigree behind it as the company insiders hold over 81 percent ownership stakes, underscoring the company’s potential to perform well in the future. Newgioco Group is currently underexposed in the market, which makes it a highly lucrative investment opportunity. The company is currently listed in over the counter exchange, and is planning to step up to a senior stock exchange listing.

Newgioco Group is active in the highly regulated Italian gaming market, which is considered the second largest market in Europe behind UK, making the New Gioco brand reliable and secure. The company has been in business over 20 years and is continuously current with its reporting measures in the US and proven track record of meeting the highest tier of listing standards. The company provides its betting technology services to other businesses through Odissea as well as directly to consumers under the brands New Gioco and Aleabet through its European subsidiaries. New Gioco, the main license holding entity, has a strong brand presence in Italy and operates both land-based retail stores, as well as internet connected betting shops with subscriptions of over 36,000 active online players. Aleabet is an online sports-bet outfit with 120 CED classified betting agency locations and nearly 40,000 active online players. Newgioco Group also offers technology solutions through Odissea, which provides a betting platform named ELYS. The company endeavors to identify itself as a technology provider for businesses in the global leisure gaming industry with plans of further increasing its scope in Italy and internationally especially in the US. With government legislated consolidation underway, the Italian market is an explosive growth incubator accounting for 23% of the global gaming market valued at over $400 billion and is expected to keep up growing at a double digit rate.

Newgioco Group is keen to grow its business organically as well as through acquisitions. The company recently completed the acquisitions of Ulisse and Odissea GmbH with both businesses being smoothly integrated into the operations of Newgioco Group. It also added 50 new locations in the third quarter of this year and is in the process of identifying more prospects for the purpose of acquisition. Italy’s rigorous regulatory environment is also conducive to the consolidation of smaller regional operators, bidding well for Newgioco Group. The company has recently invested heavily in regional growth and now expects to break its negative EBITDA streak and post profits this year. Newgioco Group derives its revenue in two different ways, giving it more flexibility and the benefits of diversification. The first revenue stream is in the form of Annuity Service income from software licensing and the second stream is from wager activity in the form of Betting Transaction income. In 2015, the company reported $5.8 million in revenue while it estimates 2020 revenue to be nearly $35 million. The company has also experienced an 80 percent increase in betting income on a year over year basis and shown consistent growth in net revenue with profits reported in two of the last four quarters.

With its strong and proven track record, Newgioco Group is well-positioned to harness several growth opportunities coming its way. Apart from consolidation in the global regulated wagering business, the company is also looking forward to developing its betting software segment. In order to fully capture the potential of these opportunities, the company would require substantial outlay of funds. For this purpose, the company may seek patronage of institutional investors to ensure the proper availability of resources. The company’s extensive experience in sports wagering also makes it an interesting proposition as it carries out wagering activities for all major international sports events including NFL, NBA, NHL and MLB. With the changing regulatory environment in the US with regard to online gaming, Newgioco Group also intends to broaden its presence in this highly valued market. As more and more states warm up to the concept of leisure wagering and gaming, the company is in a strong position to fully utilize potential opportunities in the US with its powerful and innovative ELYS betting software. Newgioco Group also faces the risk of competing with larger and more established outfits in the US. However, with its strong performance so far, the company may carve a niche for itself in the market.

Disclaimer:
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by such statements. WFM, Inc. is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. For full disclosure, please visit: http://wwfinancial.com/legal-disclaimer/.

Contact:

Worldwide Financial Marketing, Inc.
http://wwfinancial.com/
Phone: 954.360.9998

Article source: https://www.baystreet.ca/stockstowatch/2352/Newgioco-Group-NWGI-Shows-Strong-Potential-to-Grow-Business-and-Expand-Internationally

Tags: , , , , , , , , , , ,

Leave a Reply

CommentLuv badge

*