Elys Game Technology Reports First Quarter Revenue of $12.2 Million
Elys Game Technology reported first-quarter revenue of $12.2 million, up 5% quarter-over-quarter but down 14% year-over-year.
The first quarter of 2022 was mixed for Elys, which despite modest progress compared to the fourth quarter, remains below the first quarter of 2021 in many areas.
For example, its revenue topped $217 million, an improvement from nearly $215 million in the prior quarter. Additionally, disaggregated sports betting holdings continued to reach double-digit levels, standing at 18.3%.
However, Elys’ year-over-year performance paints a markedly different picture. While revenue increased on a quarterly basis, it remains $2 million lower than the first quarter of last year.
This had a knock-on effect on Elys’ operating loss, which increased year-over-year from $600,000 to $2.1 million, despite a $500 drop. $000 of costs and expenses.
Elys attributed this year-over-year decline in revenue to Covid-19, noting: “The decline in revenue from the first quarter of 2021 to the second quarter of 2022 of $2 million is due to the closure related to the pandemic of our land sites in Italy from June 2021, directly impacting the operating loss.
But Elys expects to bounce back in Italy, adding: “We plan to regain this market share and improve our performance by rolling out land operations in new locations across Italy over the next 12 to 18 months.” .
That last point likely includes Elys’ recent deals to roll out virtual sports betting products to around 5,000 sites across Italy, which will be operated by its Italian subsidiary Multigioco.
“Our tactical moves in the Italian market resulted in profitable achievements ahead of schedule as our divisional management at Multigioco took advantage of the Covid lockdowns to shut down land operations and grow our online channel,” said Michele Ciavarella, President executive of Elys Game Technology. .
He added: “We anticipate that the ADM (Italian regulator) rights recently obtained in Italy will bring Multigioco B2C land operations back to pre-Covid levels through the remainder of 2022.”