Elys Game Technology grows revenue by 22% in 2021 following US market entry
Elys Game Technology generated $45.5m in revenue after gaming taxes in 2021, up 22.0% year-on-year according to preliminary financial results published by the business.
In order to calculate the firm’s total revenue, online GGR of $54.9m (up 73.7%) is added to land-based GGR before subtracting ADM-enforced gaming taxes paid on its Italian operations. B2B revenue from US operations is subsequently added to the total.
No detail is currently available on the actual values of land-based GGR or the cost of gaming taxes incurred in 2021, although the business said B2B revenue in the US had increased more than seven-fold to account for approximately $1m of total.
Selling expenses for the business increased by around 39.1% to $36.3m, the result of increased handle, which grew around 47% year-on-year. Meanwhile, general and administrative costs grew by some 38.4% to $19.1m.
That increase in costs was a direct result of Elys’ entry into the US market, resulting in increased expenses related to the acquisition and operation of Bookmakers Company US, which completed in July.
The business also incurred significant expenses in personnel costs and professional fees to develop and establish its foothold in North America.
Elys Game Technology executive chairman Michele Ciavarella: “We believe that we are extremely well positioned to convert investment in technology into revenue generating customer relationships in the US and Canada heading into 2022″
“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 licence management,” said Michele Ciavarella, executive chairman of Elys.
“We expect to win further B2C margin improvement by streamlining Multigioco operations as we grow our omni-channel distribution strategy and establish plans to rollout 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 realise our initial investment in our US facing sports betting technology with the launch of our first US operation in October 2021 at the Grand Central Restaurant and Sportsbook in Washington, D.C.
“We believe that we are extremely well positioned to convert investment in technology into revenue generating customer relationships in the US 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,” he added.