In a significant corporate development, NeoGames will forgo its conference call on 2023 results as it anticipates the closure of its sale to Aristocrat Leisure, a transaction valued at $1.20 billion set for completion by the end of Q2 2024.
This move came after Aristocrat Leisure’s acquisition agreement in May, signaling a strategic consolidation in the gaming industry.
Tsachi Maimon, President of NeoGames, emphasized the synergistic potential between the two companies, describing them as a “really strong match” whose business offerings are mutually enhancing.
This sentiment was echoed by the company’s shareholders who, in July, overwhelmingly supported the acquisition.
Moti Malul, CEO of NeoGames, provided insights into the company’s operational performance and its merger progress, stating, “We continue to make progress towards completing our merger with Aristocrat Leisure and continue to receive the regulatory approvals required to close.
In the meantime, we remain dedicated to elevating the igaming landscape, capitalising on opportunities and diligently executing on our strategic objectives for the benefit of all stakeholders.”
The year also saw NeoGames addressing a compliance issue with Nasdaq, resolved through the appointment of Steve Capp as an independent non-executive director, subsequent to Lisbeth McNab’s board resignation.
Financially, NeoGames reported a revenue increase to $254.5 million, marking a 21.1% rise, buoyed by its ilottery and igaming sectors.
However, operational costs totaling $218.2 million overshadowed this revenue growth, resulting in an operational loss of $26.6 million for the year.
Despite this, the company saw a silver lining with a pre-tax loss of $14.1 million, slightly mitigated by joint venture profits.
The fourth quarter painted a challenging picture with a 31.0% revenue dip to $47.7 million. Yet, reduced total expenses and a strategic focus on growth sectors hint at resilience and strategic adaptation.
Malul highlighted this resilience and strategic progress, particularly noting double-digit growth in several business segments and optimism towards expanding in the US market through new partnerships and product enhancements.
In summary, while facing financial headwinds and the complexities of a significant merger, NeoGames demonstrates strategic foresight and adaptability in a rapidly evolving igaming landscape, positioning itself for future growth and market expansion.