Lottery.com outlined their strategy to return to growth in the coming year, after starting 2024 with a new revenue decline.
The lottery technology broker posted revenue of just $285,523 (EUR262,000/PS224,000) during the three months to 31 March 2024. Lottery.com generated $620,200 during the same time period in 2017. This figure was half of that. The Q1 2024 amount was listed in the condensed statement of the consolidated financial statements, which assumes that the company will be a continuing concern.
Lottery.com, based in Austin, generated revenues of $16.4m during the entire year 2021.
Lottery.com attributes the continued revenue decline to the cascade effect of the operation ceasing on subsidiaries within the group in July 2022. The decision to cease operations was taken because the group did not possess sufficient resources for funding its operation. Since then, it has only performed minimal operations on a daily basis. This limits its ability to spend money in acquisition of customers and growth initiatives.
Lottery.com is moving forward
Last year, the group launched its B2B API Platform in a limited way. It plans to launch its B2C Platform by June 2020. After the end of April 2024, its Sports.com division went live following the acquisition by SportLocker. Lottery.com reported that TinBu, Aganar, and JuegaLotto have all seen their revenue levels remain fairly constant or even decrease from the pre-operational ceases operation levels. They have all reduced their expenses.
The company added that “the cornerstone of its operational progress in FY 2024 is driven by technological, product, and service/capability improvements.”
The cost of revenue was $72,171, a 73% increase compared with the previous period. This increase is due to the higher revenue generated by products with higher costs sold in Q1 2023. This figure is $83,787 in the condensed statement.
If Lottery.com were to cease operations, the consolidated financial statement would not reflect any adjustments to recoverability or realisation of assets as well as classification of liabilities.
Due to reduced revenue, gross profit drops
Lottery.com reported a gross income of $213.352 for its operating results, a 52% decrease. The main reason for this decline was lower revenues in the first three months of 2024 compared with the same time period in 2023. This figure is $175 532 in the condensed statement.
The operating expenses fell despite the slight increase in staff costs. The loss on operations was $3.2m with total operating costs of $3.4m. In its condensed-consolidated statement, however, higher operating expenses brought the figure to $5.8m.
Lottery.com stated that it has continued to resolve legacy issues in Q1 as it did during 2023. The company also said that it had regained compliance with Nasdaq’s rules. Last year, Lottery.com announced changes in its management. It also said that it faced “material weaknesses” due to non-compliance with accounting standards. The class-action suit was filed in 2022 by investors and high-ranking former employees.
Lottery.com has announced that it will acquire the sports streaming site SportLocker in 2024 and then rebrand as Sports.com. SportLocker has links with Saudi Arabia’s growing sports program and previously announced plans to acquire clubs, sponsor and partner media programmes, focusing on UK soccer and the US Major Soccer League.
Lottery.com announced in a press release that S&MI (the owner of SportLocker) would be acquired by it in an equity-based transaction. This deal follows announcements about the issuance of $20 million worth of shares and a “substantial expansion” to fundraising. This included new and existing investor commitments that increased to $5m, from $1m.
Sports.com will be launched in Europe and the US first, with a Middle East effort. The platform combines sports news with live streaming, documentaries, and other content. The new Sports.com website does not mention sports betting.
