ewgioco Group released Wednesday an update on the impact of the coronavirus on its operations.
As result of the global outbreak of the COVID-19 virus, on March 8 the Italian government imposed certain restrictions on public gatherings and travel until April 3, 2020. Consequently, the global sports betting and interactive gaming technology company has temporarily closed approximately 150 betting shop locations throughout Italy.
On March 10, the Italian government imposed further restrictions on travel throughout Italy as well as transborder crossings that may negatively impact the company’s operating results and hamper its efforts to meet filing deadlines, Newgioco said in a press release.
The firm added that the closing of physical locations does not affect the company’s online and mobile business operation, though most professional sports events have been either postponed or cancelled, which may have an effect on the company’s overall sports betting handle and revenues. The impact, extent and duration of the government imposed restrictions on travel, public gatherings and sports events as well as the overall effect of the COVID-19 virus is presently unknown to Newgioco.
“We are closely monitoring the active circumstances and the impact of COVID-19 on our product demand and business. Our priority is protecting our employees, supporting our customers and providing timely information to our investors and stockholders,” stated company Chairman and CEO, Michele Ciavarella. “Along with our management teams in Italy and Austria, we remain in close contact with local and national health authorities and have implemented notification and prevention procedures at our administration offices and physical locations. Also, the company is proactively taking the health and safety of our employees very seriously by implementing smart-work initiatives by encouraging, when and where possible, work from home options.”
Ciavarella continued: “Although we have been directly affected by government directives to close all non-essential public gathering venues, which includes all betting shops and bingo halls throughout Italy, the company has recently taken significant steps to expand our global distribution in over 13 countries and have diversified our product offerings as well as fostering the omni-channel features of our Elys betting platform. While uncertainty remains around our ability to implement cost containment, the severity and pace of recovery strategies on our business and the market price of our common stock following the COVID-19 outbreak, our long-term fundamentals remain strong. We are continuing with planned investments, particularly in developing our U.S. betting platform and products to drive long-term growth and profitability for our shareholders.”
The company said it will provide further updates to its financial reports, including earnings and cash flow from operations, during the second quarter of fiscal 2020 based on information available at that time.