DJ Newgioco Shares Jump After Rise in 1Q Revenue
By Robb M. Stewart
Newgioco Group Inc. shares rallied Thursday after the sports betting company logged a rise in quarterly revenue despite the suspension of sports events for roughly one-third of the period.
In afternoon trading, the shares were 27% stronger at $2.58, though down 32% year-to-date after sliding in recent months.
Newgioco said its revenue increased to $10.2 million for the first fiscal quarter from $9.3 million a year earlier, driven by a lift in betting handled thanks to an ongoing conversion to online and mobile gaming from traditional land-based venues.
The company said it also saw a 12% drop in general and administrative expenses in the quarter to $2.8 million, and a 16% fall in selling expenses to $6.2 million as it cut costs and trade show participation.
"Essentially, this quarter reflects our commitment to return Newgioco operations to profitability after we made strategic changes to our board and executive management in June 2019," Michele Ciavarella, chief executive of Newgioco, said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
July 23, 2020 14:05 ET (18:05 GMT)
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