This is a far cry from Lottery.com’s revenue growth in full-year 2021, which was up by 813.3% from Covid-hit 2020.
The year had been tumultuous for the operator, with multiple management reshuffles and legal woes. In March, Lottery.com shuffled its senior management team, beginning a trend that would continue throughout the year.
In July, it “terminated the employment” of Ryan Dickinson, Lottery.com’s chief financial officer, treasurer and president after the business admitted that it had overstated its cash balance by $30m. Also in July, Lottery.com’s CEO Lawrence DiMatteo resigned and the company stated that it owed employees $425,000 in outstanding payroll obligations.
In August, Lottery.com was warned with a delisting from the US Nasdaq Stock Market after it did not file its Q2 report in time.
September brought more employee troubles. During the month, two board members quit after they said Lottery.com did not look into “red flags” that were allegedly raised by a new Lottery.com investor.
Days later, the business was handed a deadline of 5 October to fill all remaining seats, which was met – with the additional appointment of a new CEO, Sohail S. Quraeshi.
The business appointed new auditors later in October.
In November, Lottery.com’s chair Richard Kivel stepped down from the role, claiming that Lottery.com had fostered a difficult working environment and adding that chief compliance officer Dennis Ruggeri was facing an FBI investigation. A new chair was appointed days later.
In December, once again, Lottery.com received a warning from Nasdaq over filing its quarterly results – this time Q3 – late. The year finished out with another Lottery.com director exiting the business after less than two months.
Financial results
Lottery.com’s revenue costs added up to $4.3m for the year, down by 47.1% year-on-year. The brought the gross income for the year to $2.4m, a significant drop of 70.0% yearly.
Total operating expenses for the year hit $58.2m, another 70.0% loss year-on-year. This consisted of $37.1m in personnel costs, $8.9m in general and administrative fees, $6.6m in professional fees and $5.6m in depreciation and amortisation.
The expenses brought the loss from operations to $55.7m for the year, $25.9m more than in 2021.
Other expenses, consisting of interest, reserve loss of prepaid advertising credits and other expense totaled at $4.4m. This brought the pre-tax loss to $60.2m.
Following income tax expense at $104,356, the total net loss for the year was $60.3m, 14.1% more than in 2021.
Original article: https://igamingbusiness.com/finance/full-year-results/lottery-com-fy22-revenue-drops-58-6-in-riotous-year/
