Elys Game Technology losses widen as revenue falls in Q3
B2B iGaming supplier Elys Game Technology saw a 17.2% reduction in quarterly revenue year-on-year in Q3, generating a total of $8.0m, down from $9.7m in the same period last year.
This brought the business’ year-to-date total revenue to $33.9m, up 37.3.% on the first nine months of 2020.
Revenue was based upon $10.3m in GGR, down from $11.4m in Q3 2020, minus $2.5m in gaming taxes plus $239,490 in service revenues.
GGR was generated on the back on $163.7m in total turnover, up 13.9%, and consisting of $162.5m in online handle, up 37.8%, and $1.2m in land-based handle, down significantly from $25.8m in Q3 2020.
This brought year-to-date total turnover to $626.9m, up 77.2% on the first nine months of 2020.
Total costs and expenses for the quarter came to $11.1m, consisting of $6.05m in selling expenses and $5.08m in general and administrative costs.
This left the business with a loss from operations for the quarter of $3.1m, compared to a loss of $609,332 in Q3 2020.
Total other expenses came to $699,838, consisting mainly of a reduction in the fair value of contingent purchase consideration and losses on marketable securities, leaving the business with a quarterly loss before income taxes of $3.8m.
After a tax benefit of $284,636, Elys recorded a net loss for Q3 2021 of $3.5m, compared to a $1.2m net loss in Q3 2020.
After a further $154,572 loss on foreign currency translation adjustments, Elys recorded a comprehensive loss of $3.7m, compared to a comprehensive loss of $995,088 in Q3 2020.
For the year-to-date, the company’s net loss reached $6.9m, almost double to $3.6m net loss recorded in the first nine months of 2020. Comprehensive loss for the period was $7.3m, compared to $3.5m last year.
Commenting on the results, Elys’ executive chairman, Michele Ciavarella, said: “The Company continues to grow its core business that is reflected by robust increases in handle and record revenues of $37.3 million for the first nine months of the year and $8 million in the third quarter of 2021.”
“In the third quarter of 2021, we also achieved key milestones with the closing of the acquisition of Bookmakers Company US LLC and onboarding of their trading and risk management team, and the granting of our first US license, which led to the commencement of our first US operations at Grand Central Restaurant and Bar in Washington, DC.”