Lottery broker and information portal Lottery.com expects revenue to increase by up to 135% quarter-on-quarter in the third quarter of its 2021 financial year, driven by sales within its B2B segment.
In a preliminary results announcement, AutoLotto, operating as Lottery.com, said revenue is likely to reach between $22.0m and $24.0m for the three-month period.
Should Lotto.com achieve the higher end of this forecast, it would represent a 135% rise on the $9.3m in revenue it achieved during the second quarter of the current year.
Lotto.com did not go into full detail but did state that this “strong” growth was driven by increased sales in its B2B segment.
In terms of the nine-month period to the end of the third quarter, revenue is expected to amount to between $36.8m and $38.8m on a reported basis and $38.7m and $40.7m on a pro forma basis – the latter of which includes the impact of its acquisition of 80% interests in Mexico-facing lottery brands JuegaLotto and Aganar.
Based on pro forma forecasts, revenue for the nine-month period would be 270% ahead of total revenue for the entire previous year.
“I am proud of our strong third quarter preliminary results, which our team achieved while also focusing on completing our business combination,” Lottery.com chief executive Tony DiMatteo said.
“Lottery.com is a nimble organization with multiple avenues for growth and we have demonstrated our ability to generate very positive results with modest capital.
“With the completion of our business combination expected in the very near future, we anticipate using the proceeds from the business combination to accelerate growth by leveraging our favourable customer acquisition costs in continuing to expand our customer base.”
The preliminary results posting comes ahead of the expected merger between Lottery.com and special purpose acquisition company (SPAC) Trident Acquisition Group.
In November 2020, Lottery.com announced it would go public on the Nasdaq exchange through a reverse merger with Trident, which signed a binding letter of intent to acquire the broker.
Lottery.com and Trident signed a definitive agreement in regard to the merger in February this year, with the combined group set to have a post-business combination enterprise value of approximately $526m.
Trident will hold a special meeting of stockholders on October 28 to vote on the proposed business combination, as well as other proposals.