Record year-to-date handle turnover of
$463.3 million and year-to-date revenue of $25.8 million puts Elys
on track to exceed 2021 goals
Elys Game Technology, Corp. (“Elys” or the “Company”)
(Nasdaq:ELYS) (NEO:ELYS), an interactive gaming and sports betting
technology company, today reported its financial and operating
results for the six and three months ended June 30, 2021.
The Company reported strong year-over-year growth on a blended
revenue basis across land-based 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 year-to-date and second quarter betting handle,
respectively. Betting handle conversion to gross gaming revenue
(“GGR”) reached $32.3 million and $14.9 million in the year-to-date
and second quarter periods, respectively, resulting in record total
blended revenues of $25.8 million and $11.7 million for the
year-to-date and second quarter periods, respectively.
The interactive online channel also returned a year-over-year
gain of 147.6% on a six month and 144.7% on a three month basis,
while land-based operations remain shuttered due to COVID related
lockdowns. The Company anticipates that portions of land-based
operations will re-open by the beginning of the 2021-2022 soccer
season in Europe. Sportsbook hold, blended across both land-based
and interactive channels, also remained consistent with
management’s expectations at 15.8% and 14.5% over the six and three
months ended June 30, 2021, respectively.
The Company continued investing in technology, licensing and
personnel as well as legal and accounting costs allocated to
preparation of our Registration Statement on Form S-3 that resulted
in general and administrative expenses 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 building of
US and Canada infrastructure contributed the largest share of
expenses, resulting in a consolidated net loss from operations
consistent with management’s expectations of $3.3 million and $2.7
million for the six and three months ended June 30, 2021,
respectively.
Summary of Year-to-Date and Second
Quarter Financial and Operating Highlights
- YTD betting handle increased 120.5% over the prior year to
$463.3 million.
- Q2 betting handle increased 134% over the prior year to $220.1
million.
- YTD GGR increased 83.9% over the prior year to $32.3
million.
- Q2 GGR increased 153.8% over the prior year to $14.9
million.
- YTD total revenue increased 72.5% over the prior year to $25.8
million.
- Q2 total revenue increased 143% over the prior year to $11.7
million.
- YTD sportsbook hold consistent at 15.8%.
- Q2 sportsbook hold consistent at 14.5%.
- YTD net loss from operations of $3.3 million, an increase of
266.7% compared to a net loss from operations of $0.9 million over
the same period in 2020.
- Q2 net loss from operations of $2.7 million, an increase of
32.1% compared to a net loss from operations of $2.0 million over
the same period 2020.
- Cash and cash equivalents of $19.2 million at June 30, 2021
consistent compared to $19 million at December 31, 2020.
- Closing of USBookmaking acquisition continued progress made in
strengthening US management team and launch of US operations in
2021.
“We are very pleased with the remarkable growth Elys achieved
during the first six months of this year, particularly since the
COVID pandemic continues to restrict certain business activities
affecting our land-based operations. We expect that some land-based
betting shops could re-open by the beginning of the 2021-2022
European soccer season which may provide additional B2C growth in
Italy for the remainder of 2021,” stated Michele Ciavarella Elys’
Executive Chairman. “Management further remained diligent with
expenses which contained net loss from operations in line with
expectations of $3.3 million in the first six months and $2.7
million in the second quarter while investing aggressively in US
licensing, product development and personnel, and while holding a
consistent cash balance of approximately $19 million on June 30,
2021.
"Sportsbook operations continued to perform remarkably well
resulting in consecutive double-digit hold that is reflected by
robust increases in handle and record revenues of $25.8 million for
the first half of the year and $11.7 million for the second quarter
that exceeded our expectations.
“We are also delighted to have completed the acquisition of
USBookmaking by means of a Membership Interest Purchase Agreement
and have assumed its operations in the third quarter. The
transaction represents a fundamentally strategic milestone for the
Company by bringing a highly talented and dedicated team with
extensive US sportsbook experience and strengthens our core
European-based trading and risk-management division. US Bookmaking
immediately opens our US footprint in four states as well as
collaboration with existing and new customers on product innovation
and dialogue on the next generation our US sportsbook
offerings.
"Over the next six to 12 months, USBookmaking expects to
integrate our recently debuted US Elys Gameboard system on its
robust pipeline of new operators, culminating with the conversion
of existing operators as such contracts expire in late 2022. The
addition, USBookmaking continues the global diversification of
Elys’ corporate infrastructure by expanding our B2B footprint into
North America while leveraging the strong growth that we are
experiencing in our core European-based B2C business.”
Mr. Ciavarella continued, “With these remarkable second quarter
results and the current trends across our businesses, we remain on
track to meet or exceed our 2021 objectives. Considering the
significant tailwinds boosting the entire sports betting and
i-gaming sector in new markets both in Canada and the U.S., and a
number of strategic growth opportunities on the radar in Europe, we
remain confident in the sustainability of our long-term vision and
growth strategy.”
Conference Call and Webcast
The Company will host an investor day webcast presentation to
discuss the results 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 event time
and date is subject to change and the webcast will be available on
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 B2B global gaming technology
company operating in multiple countries worldwide, with B2C online
and land-based gaming operations in Italy. In Italy, Elys offers
its clients a full suite of leisure gaming products and services,
such as sports betting, e-sports, virtual sports, online casino,
poker, bingo, interactive games and slots.
The Company’s innovative wagering solution services online
operators, casinos, retail betting establishments and franchise
distribution networks. Additional information is available on our
corporate website at www.elysgame.com.
Investors may 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. These statements are
identified by the use of the words “could,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,”
“predict,” “potential,” “project” and similar expressions that are
intended to identify forward-looking statements and include
statements regarding portions of land-based operations re-opening
by the beginning of the 2021-2022 soccer season in Europe,
USBookmaking integrating the Company’s recently debuted US Elys
Gameboard system on its robust pipeline of new operators over the
next six to 12 months, culminating with the conversion of existing
operators as such contracts expire in late 2022 and remaining on
track to meet the Company’s outlook for 2021 objectives. 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 that could cause actual results to differ
materially from current expectations and assumptions from those set
forth or implied by any forward-looking statements. Important
factors that could cause actual results to differ materially from
current expectations include, among others, the Company’s ability
to re-open portions of its land-based operations for the 2021-2022
soccer season in Europe as planned, the ability of USBookmaking to
integrate the Company’s recently debuted US Elys Gameboard system
on its robust pipeline of new operators over the next six to 12
months, the Company’s ability to meet its outlook for 2021
objectives, the duration and scope of the COVID-19 outbreak
worldwide, including the impact to state and local economies, and
the risk factors described in the Company’s Annual Report on Form
10-K for the year ended December 31, 2020 and its subsequent
filings with the U.S. Securities and Exchange Commission, including
subsequent periodic reports on Form 10-Q and current reports on
Form 8-K. The information in this release is provided only as of
the date of this release, and the Company undertakes no obligation
to update or revise publicly 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 unanticipated events, except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210816005715/en/
Elys Game Technology, Corp. Michele Ciavarella, Executive
Chairman Tel: 1-628-258-5148 Email: m.ciavarella@elysgame.com
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