Elys Game Technology sees triple-digit revenue growth in 2Q, thanks to strong European operations

Elys Game Technology Corp released its 2Q results, showing revenue growth of 143% to $11.7 million, thanks to a robust European betting business. 

The company said that its European operations processed a record $463.3 million and $220.1 million in year-to-date and second quarter betting handle respectively while 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. 

Its second-quarter betting handle increased 134% over the prior year to $220.1 million, while GGR increased 153.8% over the prior year to $14.9 million. 

READ: Elys Game Technology to debut its new US retail sports betting platform at National Indian Gaming Association Trade Show in Las Vegas

“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,” executive chairman Michele Ciavarella said in a statement accompanying the results.

Ciavarella said the firm expects 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.

Its net loss came in at $2.7 million compared to the $2 million in 2Q 2020, which Elys said was in line with expectations after investing heavily in US licencing, product development and personnel.

Focus turns to US

With Europe looking strong, Elys is now turning its focus to the US gaming opportunity following its completion of the acquisition of USBookmaking, giving it a foothold in four states.

“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,” Ciavarella told shareholders. “USBookmaking 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.

USBookmaking expects to integrate Elys’ recently debuted US Elys Gameboard system in a pipeline of new operators over the next six to 12 months, according to the chairman, culminating with the conversion of existing operators as such contracts expire in late 2022.

“With these remarkable second-quarter results and the current trends across our businesses, we remain on track to meet or exceed our 2021 objectives,” Ciavarella added.

“Considering the significant tailwinds boosting the entire sports betting and i-gaming sector in new markets both in Canada and the US, 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.”

Elys ended the quarter with $19 million in cash on its balance sheet.

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Story by ProactiveInvestors