Elys’ net loss widens as revenue dips in Q1

| By Marese O'Hagan
Elys Game Technology reported revenue of $12.2m (£9.8m/€11.5m) in the first quarter of 2022, down by 13.5% compared to the same period in 2021.
Finance growth

Betting turnover came to $217.5m, down by 10.5%.

Gross gaming revenue was $15.3m, a decrease of 11.9%. Gaming taxes at $3.7m – $401,792‬ more than in 2021 – brought the net gaming revenue to $11.5m, down by 17.6%.

The addition of revenue from betting platform software and services at $655,661, resulted in revenue coming to $12.2m.

A majority of this, $11.7m, was generated through betting establishments. The remaining $484,720 was made up from betting platform and software services.

Costs and expenses amounted to $14.2m, a decrease of 3.4% year-on-year. This was mostly made up of selling expenses, which fell by 12.9% to $9.2m. The remaining $5.0m came from selling and administrative expenses, which rose by 20.8% year-on-year.

Changes in fair value of contingent payments came to $450,013.

Interest expenses were $3,859 – down by 50.8% – while other expenses were $1,070, a fall of $25,860 year-on-year.

Other income offset this slightly, at $39,749. This was significantly less than the other income recorded in 2021, which came to $281,344.

Gains on marketable securities amounted to $77,500. This was a decrease of $117,500 compared to Q1 2021.

‬After considering these expenses and income, the total net loss before income taxes was $2.3m, $2.1m more than what was recorded in the same period in 2021.

Following income tax of $156,893 – down by 59.6% – the total net loss for the period was $2.5m, $1.9m more than in Q1 of 2021.

“Elys continues to improve on its performance with another strong quarter achieving a turnover growth of $2.7 million over an already strong Q4-2021 performance,” said Michele Ciavarella, executive chairman of Elys Game Technology. “This growth was predominantly in our online betting channel in Italy while our Q1-2022 revenue also included an improvement in service revenues to $0.7 million from $0.6 million in Q4-2021.”

Subscribe to the iGaming newsletter