NeoGames Announces Third Quarter 2021 Results

-- Third Quarter Revenues of $11.9 Million and Share in NPI Revenue Interests of $8.3 Million totaling $20.2 Million (up 29.7% year-over-year) --

-- Third Quarter Net Income of $0.06 Per Share --

-- Third Quarter Adjusted EBITDA(1) of $7.5 Million (down 3.8% year-over-year) --

-- Raises Full Year 2021 total of Revenue and Share in NPI Revenues Interest Guidance to between $82.5 and $84.5 Million --

LUXEMBOURG, Nov. 10, 2021 (GLOBE NEWSWIRE) -- NeoGames S.A. (Nasdaq: NGMS) ("NeoGames" or the "Company"), a technology-driven provider of end-to-end iLottery solutions, announced today financial results for the third quarter ended September 30, 2021.

Moti Malul, Chief Executive Officer of NeoGames, said: "We continue to position ourselves well for the long-term, investing in our technology solutions and our operational capabilities and executing on our business plan as a global leader of iLottery solutions for national and state-regulated lotteries. This quarter, we have seen growth in several of our accounts with Virginia and North Carolina in the US continuing their good performance, while in Europe Sazka's online penetration has ramped up to represent a significant percentage of their total GGR. Subsequent to quarter end, our Games Studio continued its expansion with the launch of our suite of premium eInstant games with Lottomatica in Italy. We also continue to invest in PlayAlberta, as we launched draw games late in the second quarter, and launched sports betting in August. On the state authorization front, momentum has progressed in the U.S., with Connecticut and West Virginia in various stages of public procurement processes, which we see as a positive step towards further market expansion. All of these highlights reflect our ability to capitalize on our expanding market opportunity and cement NeoGames as the leader in the industry."

Third Quarter 2021 Financial Highlights

   -- Revenues were $11.9 million during the third quarter of 2021, compared to 
      $13.1 million during the third quarter of 2020. In addition, the 
      Company's share of NPI revenues was $8.3 million during the third quarter 
      of 2021, compared to $2.5 million during the third quarter of 2020, 
      representing an increase of 233.2% year-over-year. The total of revenues 
      and the Company's share of NPI's revenues was $20.2 million during the 
      third quarter of 2021 compared to $15.6 million during the third quarter 
      of 2020, representing an increase of 29.7% year-over-year. 
   -- Comprehensive income was $1.5 million, or $0.06 per share, during the 
      third quarter of 2021, compared to comprehensive income of $2.5 million, 
      or $0.11 per share, during the third quarter of 2020, . 
   -- Adjusted EBITDA1 was $7.5 million during the third quarter of 2021, 
      compared to an Adjusted EBITDA of $7.8 million during the third quarter 
      of 2020 representing a decrease of 3.8% year-over-year. 
   -- Network Net Gaming Revenue ("NGR")2 was $179 million during the third 
      quarter of 2021, compared to $126 million during the third quarter of 
      2020, representing an increase of 42.1% year-over-year. 

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(1) Adjusted figures represent non-IFRS information. See "Non-IFRS Financial Measures and Key Performance indicators" and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.

(2) Non-GAAP Financial Measures and Key Performance indicators" for additional information about this key operating metric.

Third Quarter 2021 Business Highlights

   -- Rolled out progressive jackpot instant content with three customers 
      representing an innovative development for iLottery players across our 
      platform. 
   -- VirginiaiLottery program continued its growth performance, with 
      significant growth each quarter it has been live since launch in the 
      third quarter of 2020. 
   -- Launched online sport betting in Alberta, which follows the recent 
      launches of Live Dealer and draw-based games in previous quarters. 
   -- Went live with Ceasars Entertainment in Arizona as part of their Liberty 
      platform, which is now live in 10 states with an online sport betting 
      and/or iGaming offering. 
   -- Subsequent to the quarter end, launched the Company's suite of premium 
      eInstant games with Lottomatica, further expanding NeoGames' footprint in 
      the Italian lottery market. 
   -- Completed an underwritten public offering of ordinary shares including 
      full exercise of the underwriters' option to purchase additional ordinary 
      shares. 

Guidance

The Company is raising its fiscal year 2021 Revenue and Share in NPI Revenues Interest Guidance to between $82.5 million and $84.5 million, compared to the prior range of between $75 million and $79 million, representing a 41% increase year-over-year on the midpoint.

Conference Call & Webcast Details

NeoGames will host a live conference call and audio webcast on Thursday, November 11, 2021 at 8:30 a.m. Eastern Time, during which management will discuss the Company's third quarter results and provide commentary on business performance. A question and answer session will follow the prepared remarks.

The conference call may be accessed by dialing (833) 301-1152 for U.S. domestic callers or (914) 987-7393 for international callers. Once connected with the operator, please provide the conference ID of 6643079.

A live audio webcast of the earnings conference call may be accessed on the Company's website at ir.neogames.com. The replay of the audio webcast and accompanying presentation will be available on the Company's investor relations website shortly after the call for a period of 30 days.

About NeoGames

NeoGames is a technology-driven innovator and a global provider of iLottery solutions for national and state-regulated lotteries. NeoGames' full-service solution combines proprietary technology platforms with the experience and expertise required for successful iLottery operations. NeoGames' pioneering game studio encompasses an extensive portfolio of engaging online lottery games that deliver an entertaining player experience. As a trusted partner to lotteries worldwide, the Company works with its customers to maximize their success, offering a comprehensive solution that empowers them to deliver enjoyable and profitable iLottery programs to their players, generate more revenue, and direct proceeds to good causes.

Forward-looking Statements

Certain statements in this press release may constitute "forward-looking" statements and information, within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: we have a concentrated customer base, and our failure to retain our existing contracts with our customers could have a significant adverse effect on our business; we do not have a formal joint venture agreement or any other operating or shareholders' agreement with Pollard Banknote Limited ("Pollard") with respect to NPI, our joint venture with Pollard, through which we conduct a substantial amount of our business; a reduction in discretionary consumer spending could have an adverse impact on our business; the growth of our business largely depends on our continued ability to procure new contracts; we incur significant costs related to the procurement of new contracts, which we may be unable to recover in a timely manner, or at all; intense competition exists in the iLottery industry, and we expect competition to continue to intensify; our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions; in addition to competition with other iLottery providers, we and our customers also compete with providers of other online offerings; the gaming and lottery industries are heavily regulated, and changes to the regulatory framework in the jurisdictions in which we operate could harm our existing operations; while we have not experienced a material impact to date, the ongoing COVID-19 pandemic, including variants, and similar health epidemics and contagious disease outbreaks could significantly disrupt our operations and adversely affect our business, results of operations, cash flows or financial condition; and other risk factors described in our Prospectus, filed with the Securities and Exchange Commission on September 13, 2021, and other documents filed with or furnished to the SEC.