NEW YORK–(COMMERCIAL THREAD) – Elys Game Technology, Corp. (“Elys” or the “Company”) (Nasdaq: ELYS) (NEO: ELYS), an interactive gaming and sports betting technology company, today announced its financial and operating results for the six and quarter ended June 30, 2021.
The company experienced strong year-over-year growth on a mixed revenue basis across land and interactive channels and all products combined, including its virtual sports products. Organic growth in European operations processed a record $ 463.3 million and $ 220.1 million in betting processing year-to-date and in the second quarter, respectively. The conversion of bet handles to gross gaming revenue (âGGRâ) reached $ 32.3 million and $ 14.9 million during the year-to-date and second quarter periods, respectively, resulting in Combined record total revenues of $ 25.8 million and $ 11.7 million for the current fiscal year. the date and periods of the second quarter, respectively.
The online interactive channel also saw a year-over-year gain of 147.6% six-month and 144.7% three-month, as ground operations remain closed due to lockdowns related to COVID . The Company expects parts of ground operations to reopen by the start of the 2021-2022 football season in Europe. Sportsbook ownership, mixed with both terrestrial and interactive channels, also remained in line with management expectations at 15.8% and 14.5% during the six and three months ended June 30, 2021, respectively.
The Company continued to invest in technology, licensing and personnel as well as legal and accounting costs allocated to the preparation of our registration statement on Form S-3, resulting in general and administrative costs of $ 8.9 million and $ 4.8 million for the six and three months ended June. 30, 2021, respectively. Costs related to platform development and infrastructure construction in the United States and Canada contributed most of the expense, resulting in a consolidated net operating loss in line with management expectations. $ 3.3 million and $ 2.7 million for the six and three months ended June 30, 2021, respectively.
Summary of financial and operational highlights since the start of the year and the second quarter
The amount of bets in the current year increased 120.5% from the previous year to $ 463.3 million.
Second-quarter betting processing increased 134% from a year ago to $ 220.1 million.
YTD GGR increased 83.9% from the previous year to $ 32.3 million.
The second quarter GGR increased 153.8% from a year ago to $ 14.9 million.
Total revenue for the year increased 72.5% from the previous year to $ 25.8 million.
Total second quarter revenue increased 143% from a year ago to $ 11.7 million.
Sports betting since the start of the year remains constant at 15.8%.
Sports betting for the second quarter remains at 14.5%.
Year-to-date net operating loss of $ 3.3 million, an increase of 266.7% from a net operating loss of $ 0.9 million for the same period in 2020.
Q2 net operating loss of $ 2.7 million, an increase of 32.1% from a net operating loss of $ 2.0 million for the same period in 2020.
Cash and cash equivalents of $ 19.2 million as at June 30, 2021, compared to $ 19 million as at December 31, 2020.
The closing of the USBookmaking acquisition continued the progress made in strengthening the U.S. leadership team and launching U.S. operations in 2021.
âWe are very pleased with the remarkable growth Elys has achieved in the first six months of this year, especially as the COVID pandemic continues to restrict certain business activities affecting our land operations. We anticipate that some land-based betting shops may reopen by the start of the 2021-2022 European football season, which could provide additional B2C growth in Italy for the remainder of 2021, âsaid executive chairman of Michele Ciavarella Elys. âManagement also remained diligent with expenses that contained an as-expected net operating loss of $ 3.3 million in the first six months and $ 2.7 million in the second quarter, while investing aggressively. in licensing, product development and personnel in the United States, and while holding a constant cash flow. balance of approximately $ 19 million as of June 30, 2021.
âThe sports betting operations continued to perform remarkably well, resulting in back-to-back double-digit retention which translates into solid increases in revenue and record revenue of $ 25.8 million for the former. half year and $ 11.7 million for the second quarter, which exceeded our expectations.
âWe are also delighted to have completed the acquisition of USBookmaking through a Member Interest Purchase Agreement and to have resumed operations in the third quarter. The transaction represents a fundamentally strategic step for the company by bringing a highly talented and dedicated team with extensive experience in sports betting in the United States and strengthens our leading European-based trading and risk management division. US Bookmaking immediately opens our footprint in the United States in four states as well as collaborating with existing and new customers on product innovation and dialogue on the next generation of our sports betting offerings in the United States.
âOver the next six to 12 months, USBookmaking plans to integrate our recently launched US Elys Gameboard system into its strong pipeline of new operators, culminating with the conversion of existing operators as these contracts expire at the end of 2022. The addition, USBookmaking continues to diversify Elys’ corporate infrastructure by expanding our B2B footprint in North America while leveraging the strong growth we are experiencing in our core B2C business based in Europe.
Mr. Ciavarella continued: âWith these remarkable second quarter results and the current trends in our business, we remain on track to meet or exceed our targets for 2021. Given the significant favorable winds driving the entire industry sports betting and electronic games in new markets in Canada and the United States, and a number of strategic growth opportunities on the radar in Europe, we remain confident in the sustainability of our long-term vision and strategy of growth.
Conference call and webcast
The Company will host an Investor Day webcast to discuss results and provide updates on business developments on August 23, 2021 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). ). Investors interested in participating in the live call can access the webcast by registering at: https://www.webcaster4.com/Webcast/Page/2766/42571. The time and date of the event are subject to change and the webcast will be available in the Investors section of the Company’s website at https://ir.elysgame.com/.com and archived for 90 days.
About Elys Game Technology, Corp.
Elys Game Technology, Corp., is a global B2B game technology company operating in multiple countries around the world, with B2C online and land-based gaming operations in Italy. In Italy, Elys offers its customers a full range of leisure gaming products and services, such as sports betting, e-sports, virtual sports, online casino, poker, bingo, interactive games and slot machines.
The Company’s innovative betting solution serves online operators, casinos, retail betting establishments and franchise distribution networks. Additional information is available on our corporate website at www.elysgame.com.
Investors can also find us on Twitter @ELYS_gaming.
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. These statements are identified by the use of the words âmayâ, âbelieveâ, âanticipateâ, ââ have l ‘intention to’, ‘estimate’, ‘expect’, ‘may’, ‘continue’, ‘anticipate’, ‘potential’, ‘plan’ and similar expressions which are intended to identify forward-looking statements and include statements concerning portions of land – operations based on reopening by the start of the 2021-2022 football season in Europe, USBookmaking integrating the US Elys Gameboard system recently launched by the company on its strong pipeline of new operators over the years next six to 12 months, culminating with the conversion of existing operators as such, contracts expire at the end of 2022 and remain on track to meet the Company’s outlook for o 2021 targets. 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 which are difficult to predict and which could result in so that actual results differ materially from current expectations and assumptions from those stated or implied by forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the ability of the Company to reopen parts of its ground operations for the 2021-2022 football season in Europe as planned, the ability from USBookmaking to integrate the company’s recently launched U.S. Elys Gameboard system to its strong portfolio of new operators over the next six to 12 months, the company’s ability to meet its 2021 goals, and the duration and extent of the worldwide COVID-19 epidemic, including the impact on national and local economies, and the risk factors described in the company’s annual report on Form 10-K for the fiscal year ended December 31, 2020 and its subsequent filings with the United States Securities and Exchange Commission, including subsequent periodic reports on Form 10-Q and current reports on Form 8-K. The information in this press release is provided only as of the date of this press release, and the Company assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unforeseen events, except as required by law.