LONDON - Lottery.com Inc. (NASDAQ:LTRY, LTRYW), a prominent online lottery service provider, has announced the completion of its acquisition of S&MI Ltd., the tech company behind Sports.com brand and app. The all-stock transaction, finalized on September 1, 2024, values Lottery.com shares at $3.00 each.
The acquisition is seen as a strategic move for Lottery.com, aiming to boost the long-term value of the Sports.com brand. It is expected to open up new growth avenues, particularly in the Middle East and North Africa, reinforcing Sports.com's standing as a key player in digital sports entertainment.
In recent developments, Sports.com Media, in partnership with PlanetSport, has launched white-label services in Rwanda, Kenya, and Ethiopia, targeting an audience of over 100 million sports enthusiasts. Sports.com, already the exclusive football content provider for Vodacom Soccer, has also partnered with Centili, a global payment company, to offer services via major telecommunication firms in South Africa.
Looking ahead, Sports.com plans to expand its offerings in 2024 and 2025 to include live streaming in new markets, covering a wider range of sports, including esports and sim racing. The aim is to offer fans exclusive content and in-depth analyses.
Majed Al Sorour, President of Sports.com, emphasized the acquisition's role in realizing their vision to become a global leader in digital sports entertainment. Matthew McGahan, Chairman and CEO of Lottery.com and Sports.com, expressed enthusiasm about leveraging S&MI's technology to accelerate global expansion.
Tim Scoffham, Founding partner of S&MI Ltd, highlighted the significance of partnerships with PlanetSport and Centili in broadening their global footprint and engaging millions of sports fans.
This press release contains forward-looking statements regarding future events and the company's future financial performance, which are subject to risks, uncertainties, and assumptions. Such statements should not be regarded as guarantees of future performance or results. The information in this article is based on a press release statement from Lottery.com.
In other recent news, Lottery.com has made significant strides in expanding its global presence. The company recently completed the acquisition of technology firm S&MI Ltd, developers of the Sports.com brand and app. The move, aimed at enhancing Lottery.com's footprint in the digital sports entertainment sector, is expected to particularly impact markets in the Middle East and North Africa. The acquisition comes on the heels of S&MI's partnership with Clickshakers, which is set to benefit Sports.com post-acquisition.
In a related development, Lottery.com's subsidiary, Sports.com, has broadened its international reach through a partnership with Bango PLC. This collaboration is set to launch Sports.com's streaming platform in 40 new markets, focusing on North America and Europe, with additional expansions planned for Latin America and the Asia Pacific region. The partnership with Bango will facilitate the distribution of sports content to millions of potential new users.
However, Lottery.com also announced the resignation of board member Mark Bernard Battles, who will not stand for re-election at the upcoming 2024 Annual Meeting of stockholders. His decision to step down was attributed to his desire for early retirement, and not due to any disagreements with the company's operations, policies, or practices. Following his departure, the size of the board will decrease from six to five members. These are the latest developments in the company's ongoing journey to enhance its global presence and offerings.
InvestingPro Insights
As Lottery.com Inc. (NASDAQ:LTRY, LTRYW) celebrates the strategic acquisition of S&MI Ltd., it’s worth examining the company’s financial health and market position. With a modest market capitalization of $7.45 million, the company is navigating through a challenging financial landscape. Despite a remarkable revenue growth of 125.44% in the last twelve months as of Q2 2024, the company's profitability metrics tell a cautionary tale. The negative P/E ratios, both current and adjusted (-0.1 and -0.26 respectively), underscore the absence of net earnings.
InvestingPro Tips suggest that Lottery.com’s aggressive revenue growth must be weighed against its operating income margin, which stands at a concerning -494.41%. This indicates that while the company is growing its top line, it is currently doing so at a significant cost. The gross profit margin at 3.13% also reflects the tight operational efficiency within the company. These figures suggest that while Lottery.com is expanding, it needs to focus on improving its profitability to ensure sustainable growth.
The company's stock has experienced considerable volatility, with a 1-month price total return of -13.36% and an even steeper 6-month price total return of -69.31%. These numbers are a testament to the fluctuating investor confidence and market conditions affecting Lottery.com. However, the InvestingPro Fair Value estimate at $1.15 indicates potential undervaluation, hinting at a possible opportunity for investors.
For those interested in delving deeper into the company’s prospects, InvestingPro offers additional insights, with numerous tips available to guide investment decisions. These tips can be especially valuable in understanding the full context of Lottery.com's financials and market dynamics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.