New York – (business wire)–Elys Game Technology, Corp. (“Elys” or “we”) (Nasdaq: ELYS), an interactive gaming and sports betting technology company, for the quarter and six months ended June 30, 2022 today announced its financial results.
Release highlights
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The European business achieved a net profit of $190,000 in the six months, despite the loss of revenue due to the closure of all CTD sites in Q2 2021.
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Quarterly GAAP earnings shortfalls (Q1 2022 vs Q1 2021 and Q2 2022 vs 2021 2Q) from $1.9M to $1.4M due to very strong performance of the Multigioco B2C business.
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Selling expenses in Q2 2022 decreased from $9.3 million (4.3% of sales) in Q1 2022 to $7.9 million (4.2% of sales).
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Pre-restructuring general, administrative and severance expenses decreased from $5 million in Q1 2022 to $4.8 million in Q2 2022. This includes his $700,000 additional expense from the US bookmaking business it acquired in July 2021.
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Fragmented sportsbook ownership remains in double digits at 16.6% in Q2 2022 compared to 14.8% in Q2 2021.
Michele Ciavarella, Executive Chairman of Elys Game Technology, said: New Jersey. The mobile and online channels through Multigioco’s subsidiaries have delivered excellent results, being profitable for the second consecutive quarter, in line with the company’s path to profitability set for Q1 2022.
As part of this mandate, we implemented a cost-cutting plan at the corporate level by restructuring the US management team. This resulted in a one-time severance payment of $1.2 million. On the other hand, the bookbinding division in the United States suffered more-than-expected losses due to excessive administrative costs. It is expected that this will be resolved quickly.
Investments in technology development contributed to expenses in the first half of 2022. These include our engineering team continuing to build the Ocean Casino Resort’s large venue casino platform, and US mobile and digital products from Rotomatica SpA.
Our outlook for the remainder of 2022 and through 2023 will focus on the reopening of our land-based stores in Italy and new US stores that we plan to launch in several states over the next 12-18 months. ”
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Quarterly and half-year financial highlights |
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The following table summarizes consolidated results for the quarters and six months ended June 30, 2022 and 2021 (in millions). |
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2022 |
2021 |
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Three months |
6 months |
Three months |
6 months |
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one million dollars |
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Earnings |
10.3 |
22.6 |
11.7 |
25.9 |
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costs and expenses |
12.6 |
26.9 |
14.4 |
29.2 |
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Restructuring/retirement allowance |
1.2 |
1.2 |
– |
– |
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operating loss |
(3.5) |
(5.5) |
(2.7) |
(3.3) |
The decline in revenue of $1.4 million over the three months and $3.3 million over the six months from Q2 2021 to Q2 2022 was due to a 9.2% appreciation of the US dollar against the euro. The euro and the closing of his CTD site in Italy in the previous year were all offset by a very strong performance from the Multigioco business. In the next 12-18 months, we hope to be able to resume land operations in new locations across Italy, which will allow us to recover lost revenues and improve our performance.
North America business highlights
In Q2 2022, the expansion of the first large-scale venue reached another milestone as the all-new The Gallery Sportsbook at Ocean Casino Resort opened on July 1st.stand the system migration to the new hardware was successfully completed on August 3rd.rd No power outages or service interruptions. Additionally, completed the first CBE Class B JV application model in Washington, DC. This marks the opening of his second smaller venue at his Cloakroom Gentlemen’s Club in DC and is expected to complement his first Grand Central restaurant and sportsbook. New application model rapidly expands footprint in Washington, DC, using a standardized format that facilitates the onboarding process for new restaurant and small business owners seeking to establish a sportsbook within their business premises is expected.
In April 2022, it also partnered with Ohio’s Wright Bet Ventures to begin plans to enter the Ohio sports betting market in 2023. Expand the successful Washington, DC small business sportsbook model by providing a turnkey sportsbook for on-site patrons.
These developments are in line with our plans to launch new U.S. operations by the start of the 2022-23 NFL season.
Italy Operation Highlights
“The defensive strategy we implemented with the outbreak of COVID conditions in Italy to focus growth on our Multigioco business is paying off. Up $1 million, land-based revenues are showing signs of recovery, up $200,000 in Q2 2022 compared to Q2 2021.” Decreased $1.7 million to $7.9 million, 4.2% compared to 4.4% of sales, and reduced expenses by approximately $1.1 million in the first half of 2022. This reflects continued efforts to improve margins. at the bottom of our efforts.
As previously explained, the second phase of the B2C operational strategy will begin in Q1 2022, with the eventual acquisition of approximately 80 ADM onshore license rights for locations scheduled to reopen in Q3 2022. and plans to acquire 20 more rights in the meantime. We will fully restore the Italian land channel in the second half of 2022. We expect this investment to generate approximately $20 million in additional annual revenue and return the business to pre-pandemic revenue levels without incurring significant costs. We are confident that the addition of his ADM rights in Italy will allow him to accredit both Italian land sportsbooks and virtual generation virtual sports platforms, leading to increased B2B revenue opportunities for him going forward. increase. ”
About Elys Game Technology, Corp.
Elys Game Technology, Corp. is a B2B global game technology company with operations in multiple countries around the world, including B2C online and land-based gaming operations in Italy. Elys offers its clients a complete suite of Italian sports betting, esports, virtual sports, online casinos, poker, bingo, interactive games, slots and other leisure gaming products and services, operating in five states and districts. Expanding. of Colombia for the US market. Elys’ vision is to become a global leader in the gaming industry through the development of pioneering and innovative technology.
The Company provides gambling solutions, service online operators, casinos, retail gambling establishments and franchise distribution networks. Additional information is available on the corporate website at www.elysgame.com.
Investors can also find us on Twitter @ELYS_gaming.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “intends,” “estimates,” “expects,” “may,” “continues,” “anticipates,” “may,” “plans,” and forward-looking statements A similar phrase intended to identify the company and includes a statement of the company’s positioning Towards a strong second half of 2022, the excessive administrative costs of US bookmaking will be quickly resolved and the As we continue to reopen stores and launch new U.S. stores in multiple states over the next 12-18 months, the company will lose revenue from Q2 2021 to Q2 2022 and lose revenue over the next 12 to 18 months. We will improve our performance as we resume land operations at new locations across Italy in the coming months. The company’s first Grand Central restaurant and sportsbook, a new application model that will rapidly expand the company’s footprint in DC, is expected to enter the Ohio sports betting market in 2023, and will expand into 2022-23. We plan to launch our new U.S. operations by the start of the NFL season. The company will reopen its Italian land base in the third quarter of 2022, generating approximately $20 million in additional annual revenue, returning its Italian operations to pre-pandemic revenue levels without incurring significant costs. Accrediting both Italian land-based sportsbooks and virtual generation virtual sports platforms to increase his B2B revenue opportunities going forward. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties. Many of them are difficult to predict and actual results could differ materially from current expectations. Assumptions expressed or implied by forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, our ability to quickly resolve excessive administrative costs in bookmaking in the United States, our land-based location in Italy; including our ability to continue the reopening and launch of Building new US sites in several states in the next 12-18 months, as planned, and our ability to improve our performance by resuming land operations in new sites across Italy in the next 12-18 months. , our ability to expand into new applications Our ability to enter the Ohio sports betting market in 2023 Our ability to launch new US operations by the start of the 2022-23 NFL season Returning to pre-pandemic revenue levels at no cost, the company’s ability to use advertising to certify both Italian land-based sportsbooks and virtual generation virtual sports platforms, creating additional B2B revenue opportunities going forward Italy’s ADM Rights The Company’s annual report on Form 10-K for the year ended December 31, 2021 and subsequent filings with the U.S. Securities and Exchange Commission (subsequent periodic reports on Form 10-Q) Risk Factors-K. or as a result, we undertake no obligation to update or revise any forward-looking statements. Statements made or reflect the occurrence of unforeseen events, except as required by law.
