Newgioco Group, Inc. (“Newgioco” or the “Company”) (Nasdaq: NWGI), a global sports betting and interactive gaming technology company providing fully integrated, omni-channel sports betting software solutions, today provided an update on continuing operations amid restrictions due to the global outbreak of COVID-19.
In continuing our commitment to update investors and stockholders, the company is reporting that periodic sales have seen an overall decrease of approximately 20% reflected by non-GAAP gross gaming revenue (“GGR”) from approximately $1.92 million between February 1 and 25 to approximately $1.54 million between March 1 and 25, 2020. The largest decrease in GGR was approximately 42.7% on sports book due to the global suspension of almost all global sports and the closing of all land-based betting shops, while GGR of Casino, Poker and other-than-sports product lines increased 16.6% combined, with the largest increases coming from online Poker and Virtual Sports.
“We have taken steps to mitigate the impact of this unprecedented global crisis by implementing strategic plans meant to continue providing the highest level of service to our customers and operators while keeping our employees safe during this challenging and remarkable time,” stated Company Chairman and CEO, Michele Ciavarella. “We are happy to have maintained a manageable level in our diversified sales channels given the headwind caused by complete shutdown of global sports. Our objectives are to be prepared for re-opening our betting shops, putting our agents back to work and look forward to continuing normal operations along with the return of sports events once it is safe to do so.”
As previously reported, the Company’s administrative, technology, customer service and risk management offices are currently operating on a smart-work collaboration with all staff working remotely from home due to government imposed laws to help prevent the spread of COVID-19. The Company is complying with rules to furlough its employees and has not laid off any employees. The Company believes that as revenue from operations remains reasonably stable, it has sufficient available liquidity, coupled with cost reductions and available bank facilities to enable it to fund its current obligations for the foreseeable future. Additionally, the Company may have a variety of government backed financial initiatives available to assist with 70% of employee salaries upon their return to work, deferral of rent and other expenses, as well as offsetting costs related to agents that operate betting shop locations.