A non-compliance notice was handed down to NeoGames by NASDAQ, following the exit of the company’s chair of the Audit Committee and member of the Compensation Committee and Nominating and Corporate Governance Committee Lisbeth McNabb.

McNabb exiting – rather abruptly too – prompted the exchange to intervene and deemed the company non-compliant specifically because it lacked three members on its Audit Committee. McNabb himself left voluntarily and amicably, but NASDAQ still deemed it inappropriate.

The non-compliance notice though has not prompted any bigger change as the company had a grace period until October 18 to appoint a third member, which it now has. This is where Steve Capp has entered his role as an independent and non-executive director and the latest addition to the Audit Committee, and all other positions vacated by his predecessor.

Capp is also a heavyweight in the gambling industry, having served as chief financial officer at Bally’s Corporation in the past and holding the same role with Pinnacle Entertainment, two very well-established companies in the gaming space.

Compliance Restored as NeoGames Continues Business as Usual

Commenting on his appointment, NeoGames CEO Moti Malul said that the man makes a valuable addition to the board, adding:

Steve is a highly experienced executive who brings leadership, deep expertise, and professional experience to our board.

NeoGames CEO Moti Malul

His appointment does not happen in a vacuum either, as NeoGames has been actively looking or expand and strengthen its executive expertise. Previously, the company appointed Motti Gil who is going to replace Raviv Adler, the outgoing CFO, starting on July 31, 2023.

The restoration of a compliance status comes at an important time for the company as NeoGames is being acquired by Aristocrat, for a sum total of $1.20 billion. The plan is to see one of Aristocrat’s subsidiaries merge with NeoGames’ existing operations.

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William Hill Limited, a UK-based subsidiary of Gibraltar-based 888 Holdings, has published its annual financial report for 2022, a flat year in which foreign exchange gains helped the business to profit.

Betting Shops Saved the Day

For the 52 weeks ended December 27, 2022, William Hill generated net revenue of £1.2353 billion ($1.5688 billion), ending the year marginally down, 0.5%, from £1.2414 billion ($1.5766 billion) the business registered in 2021.

The result was mainly due to William Hill’s Retail division, which saw a return of people to the betting shops as there were no lockdowns in the period and delivered net revenue of £514.2 million ($653 million), a 53% increase on the previous year’s result of £336.8 million ($427.74 million).

The increase in Retail was offset by the drop in both UK Online and International businesses: online operations in the UK accounted for net revenue of £509.1 million ($646.6 million), a drop of 19% from £628.6 million ($798.3 million) registered in 2021, while the International business generated 23% less, £212 million ($269.2 million), as compared to £276 million ($350.5 million) in 2021.

The revenue decrease from online operations in the UK was influenced by the return of people to the betting shops, as well as the implementation of enhanced customer safety checks in preparation for the upcoming white paper on the ongoing review of the Gambling Act 2005. International was impacted by additional regulatory measures and William Hill’s departure from the Netherlands.

EBITDA, Operating Loss, Profit after Tax

The group’s Adjusted EBITDA for the period was £214.8 million ($272.8 million), an impressive 32% increase from £161.7 million ($205.4 million) in 2021. Across the divisions, Retail accounted for £95.7 million ($121.5 million) (£0.1 million in 2021), UK Online added £112.2 million ($142.5 million) (£153.5 million in 2021), and International contributed £33.1 million ($42 million) (£34.1 million in 2021).

Exceptional items and adjustments increased from a loss of £99.4 million ($126.2 million) in 2021 to a loss of £148.7 million ($188.8 million) due to deal-related costs and an increase in legal provisions.

William Hill registered an operating loss of £31 million ($39.4 million), down 52.7% from £65.5 million ($83.2 million) in 2021, due to a reduction in marketing expenses.

A one-off foreign exchange gain of £198.8 million ($252.5 million) on financing items as a result of exchange differences on the group’s debt to its parent helped profit after tax increase to £168.4 million ($213.9 million) and reverse the previous year’s loss of £58.9 million ($74.8 million).

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