Wall Street Signals: Newgioco Group (NWGI) Strong Fundamentals, Expanding Network and Premier Sports Betting Technology Driving Value

Newgioco Group (NWGI) Strong Fundamentals, Expanding Network and Premier Sports Betting Technology Driving Value

The last week was tumultuous for the global equity market. In the U.S., the S&P 500 posted its worst weekly losses in more than two years. Meanwhile, exchange traded funds bullish on the benchmark index saw record outflows last week, indicating that there could be more pain for global equity investors.

While sell-offs like the one last week can shake investors’ confidence, they also create buying opportunities. In fact, during sell-offs like these, small cap stocks are the hardest hit as they are deemed to be riskier. But on several occasions, the sell-off is not justified especially if business fundamentals remain solid.

$NWGI is a promising company in the global gaming arena. After two disappointing years, the global gaming industry saw a revival last year and $NWGI stands to benefit from this trend. Another important tailwind for NWGI is the fact that more and more states in the U.S. are looking to legalize sports betting. $NWGI directly stands to benefit from this trend.

This robust growth in the Italian market has allowed NWGI to register strong operational numbers. For example, in 2016, the company saw 43% growth in betting turnover. Recently, NWGI reported strong transactions growth for the fourth quarter of 2017. The company reported that sport betting volumes in the fourth quarter of 2017 rose 25% on a year-over-year basis to $32 million. Gross gaming profits were $6.5 million in the quarter, which is the highest for any quarter in NWGI’s history. Gross gaming profits rose 82% on a year-over-year basis.

NWGI Chairman and CEO noted that the successful execution of revenue growth plan is now yielding results for NWGI as the company is exceeding its business plan projections well in advance of the implementation of its 2018 acquisition strategy. The CEO further added that the positive surprise gives the company better visibility and confidence in continued revenue growth throughout 2018 having started the year with all its systems and business verticals integrated and stabilized.

Recently, the company took further steps to strengthen its position in Italy with the signing of four new online gaming networks in the country. NWGI noted that the new operators expand its fast-growing online distribution to regions previously not covered by its webshop locations bringing the total retail stores to approximately 1,300 and increases the number of websites distributing the NWGI brands to eight. In addition, NWGI expects to add approximately 20,000 registered players to its regulated online gaming network from these operators and expanding its newgioco.it brands which now include originalbet.it; lovingbet.it; timetobet.it; clubgames.it; mixbet.it; imperialbet.it; quibet, resulting in projected annual turnover growth of $12 million in sports betting and $36 million in casino sales.

NWGI also announced recently that it has launched NG PAY, a payment gateway, under a licensing agreement with Euronet Worldwide Inc. The payment gateway is a multi-service platform that offers NWGI customers virtual distribution, through its private circuit, of products and ancillary services such as telephone top-ups, processing of digital product transactions as well as the distribution of gift cards for major global brands such as Amazon, Netflix and PAYTV programming in Italy.
Underlying this development, NWGI stated the NG PAY program also paves the way for their integrated digital and crypto accessible betting wallet and blockchain technology strategy on their leading-edge betting software.
The recent developments have further strengthened the NWGI story and the recent pullback has allowed an excellent opportunity to go long.
Source: Baystreet