Neogames $NGMS 🎰🎰🎰
🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
▫️SaaS provider of iLottery solutions
▫️70 % market share in US
▫️highly scalable & high margins
▫️profitable
▫️sticky business
▫️huge potential for further growth
▫️undervalued
🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
A thread 1/x ⬇️
🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
▫️SaaS provider of iLottery solutions
▫️70 % market share in US
▫️highly scalable & high margins
▫️profitable
▫️sticky business
▫️huge potential for further growth
▫️undervalued
🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
A thread 1/x ⬇️
Business Overview
▫️ $NGMS has multi-year contracts with state lotteries to develop and manage their iLottery program
▫️Revenues calculated as a % of gross gaming revenue (GGR) or net gaming revenue (NGR) generated via iLottery platform
▫️ 360 degree iLottery solutions
▫️ $NGMS has multi-year contracts with state lotteries to develop and manage their iLottery program
▫️Revenues calculated as a % of gross gaming revenue (GGR) or net gaming revenue (NGR) generated via iLottery platform
▫️ 360 degree iLottery solutions
Technology platform
▫️neosphere: player account management and marketing platform for iLottery and iGaming
▫️neodraw: One of only four certified Draw Games systems
▫️neoplay: sophisticated and flexible eInstant games server
▫️neosphere: player account management and marketing platform for iLottery and iGaming
▫️neodraw: One of only four certified Draw Games systems
▫️neoplay: sophisticated and flexible eInstant games server
Neogames Studio
▫️350+ proprietary games
▫️15 years of experience
▫️30+ new games per year
▫️award winning games
▫️Driving the majority of iLottery GGR
▫️350+ proprietary games
▫️15 years of experience
▫️30+ new games per year
▫️award winning games
▫️Driving the majority of iLottery GGR
Operational Services
▫️payments managements
▫️compliance
▫️Tech operations
▫️Customer support
▫️Data analysis
▫️Marketing & CRM
▫️payments managements
▫️compliance
▫️Tech operations
▫️Customer support
▫️Data analysis
▫️Marketing & CRM
iLottery market
▫️Long sales cycles
▫️Long term relationships (4-7 year contracts)
▫️high vendor switching costs
▫️growth alongside traditional lottery
▫️Preference for turnkey solutions
▫️Revenue share contracts - customer (state lotteries) responsible for marketing spend
▫️Long sales cycles
▫️Long term relationships (4-7 year contracts)
▫️high vendor switching costs
▫️growth alongside traditional lottery
▫️Preference for turnkey solutions
▫️Revenue share contracts - customer (state lotteries) responsible for marketing spend
USA
▫️market leader with 70 % market share
▫️currently 77 % of the US with access to lottery but without access to iLottery
▫️further legislation expected in many states
▫️huge potential for further growth
▫️50/50 JV (NPI) with Pollard Banknote to serve the US market
▫️market leader with 70 % market share
▫️currently 77 % of the US with access to lottery but without access to iLottery
▫️further legislation expected in many states
▫️huge potential for further growth
▫️50/50 JV (NPI) with Pollard Banknote to serve the US market
Growth driver
1️⃣ Existing market penetration expansion
2️⃣ Winning new US Turnkey Contracts
3️⃣ Growing Game Studio Customer Base
4️⃣ Expanding the scope of existing contracts
5️⃣ Expanding geographical presence and range of offerings
1️⃣ Existing market penetration expansion
2️⃣ Winning new US Turnkey Contracts
3️⃣ Growing Game Studio Customer Base
4️⃣ Expanding the scope of existing contracts
5️⃣ Expanding geographical presence and range of offerings
Financials 2020
▫️Revenue +67 %
▫️NPI contributed 16 % of revenue (+ 375 %🔥)
▫️adj. EBITDA + 141 %
▫️48.8 % EBITDA margin
▫️first profitable year
▫️Guidance for '21 expects Revenue growth of 32-40% but additional contracts or further deregulation ist not included
▫️Revenue +67 %
▫️NPI contributed 16 % of revenue (+ 375 %🔥)
▫️adj. EBITDA + 141 %
▫️48.8 % EBITDA margin
▫️first profitable year
▫️Guidance for '21 expects Revenue growth of 32-40% but additional contracts or further deregulation ist not included
Valuation 📈
▫️EV/S '21 of ~12
▫️P/E '21 of ~ 74
▫️estimated profit growth of over 74% for '21 and over 90% for '22
▫️PEG Ration < 1
▫️additional opportunities through further contracts not included in estimations
▫️EV/S '21 of ~12
▫️P/E '21 of ~ 74
▫️estimated profit growth of over 74% for '21 and over 90% for '22
▫️PEG Ration < 1
▫️additional opportunities through further contracts not included in estimations
Summary 🎰🎰🎰
Regarding the sticky business with long term contracts, the market leadership in NA, the growing online gambling market, ongoing legislations, high margins and high profitable growth $NGMS is pretty undervalued imo and offers good returns.
⬇️
Regarding the sticky business with long term contracts, the market leadership in NA, the growing online gambling market, ongoing legislations, high margins and high profitable growth $NGMS is pretty undervalued imo and offers good returns.
⬇️
The whole online gambling market is set to grow rapidly in the next years. With $EVO (Casino), $KAMBI (Betting) and $NGMS (State Lotteries) the fastest growing categories are covered with B2B providers which offer better margins and profitabilty compared to operators like $DKNG
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