Next Group Holdings, Inc. Announces Record Revenue and Earnings for First Quarter 2017

MIAMI, July 12, 2017 /PRNewswire/ --

Company Posts Record Quarterly Revenue of $500,327 and Record Quarterly Earnings of $811,458 

Next Group Holdings, Inc. (OTCQB: NXGH) today announced results for its first quarter of fiscal year 2017 which ended March 31, 2017, including record revenue and earnings.  The results were posted in the company's most recent Form 10-Q, filed with the SEC on July 7, 2017.

Revenue for the first quarter of fiscal year 2017 was a record $500,591, compared to $82,303 for the same period last year, an increase of 608%, and is largely attributable to the 2016 acquisition of Tel3, a business segment of an existing retail calling minutes company, and which contributed revenues of $500,327 during the three months ended March 31, 2017.

Net income attributable to Next Group Holdings, Inc. for the three months ending March 31, 2017 was a record $811,458-or .03 per fully diluted share - compared to a loss of $754,877 for the same period of 2016.  Income for the quarter was due to a significant one-time gain from the sale of its interest in Transaction Processing Products, Inc. ("TPP"), which holds a 64% interest in Accent InterMedia, LLC ("AIM") and no other assets or liabilities.  TPP was acquired by the Company in July of 2016.  AIM operated as a leading gift card provider but was discontinued on March 31, 2017.

Cost of goods sold for the three months ended March 31, 2017 was $335,257, compared to $107,171 for the same period of the prior year, resulting in higher gross margins; $165,334 for the current quarter, compared to negative $24,858 for the same quarter of the prior year.  The increase in cost of goods sold was the result of the acquisition of Tel3 in fiscal year 2016 and the incremental costs associated with offering telecom minutes for customers.

The company's working capital deficit at the end of the current quarter was $7,946,033, down $1,777,086 (18%) from $9,723,119 posted at the end of the first quarter of 2016.

Full contents of the 10-Q filing can be found at https://www.sec.gov/Archives/edgar/data/1424657/000121390017007236/0001213900-17-007236-index.htm

NXGH has signed Letters of Intent with the following entities and is performing due diligence to complete the acquisition process.

During the current quarter the Company entered into a non-binding letter of intent with AZUGROUP USA, LLC to acquire assets owned or controlled by that company and its majority shareholder, Mr. Antonio Faranda.  Together, AZUGROUP USA, LLC and Feranda own or control three Italian companies, known collectively as AZUGROUP which, together generated US $14.2 million in revenue during the 2016 calendar year.

During the current quarter the Company also entered into a non-binding letter of intent with LIMECOM INC to acquire assets owned or controlled by that company.  LIMECOM is expected to generate US$125 million in revenue with US$2.5 million EBITA during the fiscal 2017 calendar year.

About Next Group Holdings, Inc. 

Next Group Holdings, Inc. (OTCQB: NXGH) is a corporation headquartered in Miami, Florida, which, through its operating subsidiaries, engages in the business of using proprietary technology and certain licensed technology to provide innovative mobile banking, mobility, and telecommunications solutions to underserved, unbanked, and emerging markets.  NXGH owns 94% of the issued and outstanding shares of NEXTCALA, one of the corporation's four operating subsidiaries.

THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE. EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS"ESTIMATE", "ANTICIPATE", "BELIEVE", "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE INCLUDE STATEMENTS RELATING TO OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY.

Contacts:
NXGH Investor Relations:                                    
Paul Gendreau                              
PGPR                                    
[email protected]                            
678-807-7945

for Next Group Holdings, Inc.:
Dave Gentry
RedChip Companies Inc.
[email protected]
407-491-4498    

SOURCE Next Group Holdings, Inc.