Elys Game Technology, Corp. (“Elys” or the “Company”)
(Nasdaq:ELYS) (BER:3UW), an interactive gaming and sports betting
technology company, today reported that management expects revenues
to increase by approximately 22% to approximately $45.5 million for
the fiscal year ended December 31, 2021, subject to final audit
verification, compared to approximately $37.3 million for the
fiscal year ended December 31, 2020. Additionally, we expect
web-based gross gaming revenue to increase by approximately 74% to
approximately $54.9 million for the fiscal year ended December 31,
2021, subject to final audit verification, compared to
approximately $31.6 million for the fiscal year ended December 31,
2020.
Our recent entry into the US B2B market has had a very positive
effect on our service related business, although still relatively
small, our revenues in this segment have grown to approximately $1
million for the fiscal year ended December 31, 2021, an improvement
of approximately 627%, subject to final audit verification.
Salient points about Operating expenses, before impairment
charges, which includes selling and general and administrative
expenses are anticipated to be as follows:
- Selling expenses, which consists primarily of commissions paid
to third party agents on our B2C operations in Europe and
calculated as a percentage of turnover, of approximately $36.3
million increased by approximately 39% for the fiscal year ended
December 31, 2021 compared to approximately $26.1 million in the
prior year on the back of an increase in turnover of approximately
47%, all of which subject to final audit verification.
- General and administrative expenses have increased by
approximately $5.3 million or 39% from approximately $13.8 million
in 2020 to approximately $19.1 million in 2021, subject to final
audit verification. The increase is a direct result of our entry
into the US market, including increased expenses related to the
acquisition and operation of Bookmakers Company US, LLC and
significant expenses incurred in both personnel costs and
professional fees to develop and establish a foothold in the US
Market. Developments included the first Class B Operator license
issued in the country, and our first small business customer, Grand
Central, in Washington D.C., and build-out for the recent addition
of Ocean Resort Casino as our first major resort casino customer.
We expect to continue incurring expenses related to our expansion
investment in the US market.
Impairment charges, which are non-cash, are preliminarily
estimated to be $16 million for 2021, subject to final audit
verification. These preliminary impairment costs are estimated to
include (i) an impairment of a European license of $4.8 million, as
management is concentrating its efforts on the U.S. and Canadian
markets with their future growth potential compared to the measured
growth potential in more mature European markets; and (ii) an
impairment of goodwill related to our recent U.S. acquisition
preliminarily estimated to be $11.2 million which is offset by a
reduction in future earnout payments estimated at $12.3 million,
based on the timing of the anticipated revenue growth in our
recently acquired subsidiary, Bookmakers Company US, LLC.
Michele Ciavarella, Executive Chairman of Elys, commented, “We
are very pleased with the growth of our European operations
demonstrating the value of early investments we made to develop our
Newgioco brand in the Italian market and the streamlining of
operations under the Multigioco subsidiary thereby eliminating the
duplication of license management. Multigioco benefited from the
completion of our Ulisse operations which were organized in the EU
while operating in Italy. As reported in mid-2021, the Company
phased out the Ulisse operations due to the impact of COVID
restrictions on their land-based distribution resulting in a
non-cash impairment of $4.8 million. We expect to win further B2C
margin improvement by streamlining Multigioco operations as we grow
our omni-channel distribution strategy and establish plans to
roll-out the land-based channel of our powerful Elys Gameboard
technology on a B2B basis in Europe.”
“As discussed in early 2021, we also began to realize our
initial investment in our U.S. facing sports betting technology
with the launch of our first U.S. operation in October 2021 at the
Grand Central Restaurant and Sportsbook in Washington, D.C. Our
goals continue to be not only to establish ourselves as one of the
world’s leading end-to-end sports betting enterprises but, as
importantly, to align our product and service offerings to the
needs of our B2B clients as well as B2C consumers in order to build
a well-managed organization that is both highly profitable and
sustainable. In this regard, we believe that we are extremely well
positioned to convert investment in technology into revenue
generating customer relationships in the U.S. and Canada heading
into 2022, including our recent partnership to challenge for top
position in North America by combining our leading-edge US.
designed sportsbook technology with industry giant Lottomatica and
their highly experienced and talented management team. We
anticipate meaningful near-term milestones and look forward to
providing updates on these developments as they unfold.”
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. 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 in Italy and has operations in
five states as well as the District of Columbia in the U.S. market.
Elys’ vision is to become a global leader in the gaming industry
through the development of pioneering and innovative
technology.
The Company provides wagering solutions, 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 the estimated increase in revenues, the
estimated increase in web-based gross gaming revenue, the estimated
increase in percentage of turnover, the estimated increase in
general and administrative expenses, the Company continuing to
incur expenses related to its expansion investment in the U.S.
market, winning further B2C margin improvement in Multigioco
operations as the Company grows its omni-channel distribution
strategy, rolling out the land-based channel of the Company’s
powerful Elys Gameboard technology on a B2B basis in Europe,
establishing ourselves as one of the world’s leading end-to-end
sports betting enterprises, aligning its product and service
offerings to the needs of its B2B clients as well as B2C consumers
in order to build a well-managed organization that is both highly
profitable and sustainable, converting investment in technology
into revenue generating customer relationships in the U.S. and
Canada, challenging for top position in North America by combining
our leading-edge U.S. designed sportsbook technology with industry
giant Lottomatica, anticipate meaningful near-term milestones and
providing updates on these developments as they unfold. 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 successfully launch its operations in the U.S., the regulatory
environment in all jurisdictions in which we operate, the ability
to grow market share in new and existing markets, the Company’s
ability to quickly adapt to market conditions such as the current
pandemic, the Company’s ability to win further B2C margin
improvement in Multigioco operations as we grow our omni-channel
distribution strategy as expected, roll-out the land-based channel
of our powerful Elys Gameboard technology on a B2B basis in Europe
as planned, establish ourselves as one of the world’s leading
end-to-end sports betting enterprises, aligning our product and
service offerings to the needs of our B2B clients as well as B2C
consumers in order to build a well-managed organization that is
both highly profitable and sustainable, convert our investment in
technology into revenue generating customer relationships in the
U.S. and Canada as planned, challenge for top position in North
America by combining our leading-edge U.S. designed sportsbook
technology with industry giant Lottomatica as expected, the
duration and scope of the COVID-19 outbreak worldwide, including
the impact to the 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.
The preliminary, estimated financial results for the fiscal year
2021 contained in this press release contain forward-looking
statements and are subject to the completion of management’s and
the audit committee’s final reviews and our other financial closing
procedures and are therefore subject to change. You should not
place undue reliance on such preliminary information and estimates
because they may prove to be materially inaccurate. The preliminary
information and estimates have not been compiled or examined by our
independent auditors and they are subject to revision as we prepare
our financial statements as of and for the fiscal year ended
December 31, 2021, including all disclosures required by U.S.
generally accepted accounting principles, and as our auditors
conduct their audit of these financial statements. While we believe
that such preliminary information and estimates are based on
reasonable assumptions, actual results may vary, and such
variations may be material.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220328005268/en/
Company Contact: Elys Game Technology, Corp. Michele
Ciavarella, Executive Chairman Tel: 1-628-258-5148 Email:
m.ciavarella@elysgame.com
Investor Contact: KCSA Strategic Communications Valter
Pinto or Jack Perkins Tel: 1-212-896-1254 Email: ELYS@KCSA.com
Elys Game Technology (NASDAQ:ELYS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Elys Game Technology (NASDAQ:ELYS)
Historical Stock Chart
From Apr 2023 to Apr 2024