Don’t be surprised if Newgioco Group reports Q2 losses. The Italian operator and supplier could see revenues falling as much as 52.7%. Another pandemic victim for sure! Newgioco claims it has experienced an “unprecedented decrease” in overall revenue due to sports shutdowns.

For the three months ending June 30th, revenues for the company are likely to be between $4.3m (£3.28m/€3.65m) and $5.3m. This is a clear a year-on-year decline of between 41.7% up to 52.7%. Of note $9.1m was generated in 2019.

Looking at the last the six months, we expect to see a drop of $14.5m and $15.5m. If so, this would mean a dip of 15.8% and 21.2% from $18.4m in the first half of the prior year.

Selling expenses for Q2, between $3.5m and $4.5m (down from $6.3m in 2019), could help the obvious decline. Then selling expenses for both Q1 and Q2 would be between $9.7m and $10.7m. This is a drop from the $13.7m of costs incurred these two quarters in 2019.

Nonetheless, Newgioco reported a profit for Q1 of 2020. Now it intends to raise net proceeds of $9.2m through a share offering. This will help repay outstanding debts and accumulate new working capital.

Source: https://www.igamingbusiness.com/news/newgioco-expects-q2-revenue-decline-527

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