Elys Game Technology’s $14.2m record Q1 revenue

Yet company reports $609,000 net loss due to expenses related to US expansion.

Elys Game Technology, Corp., an interactive gaming and sports betting technology company, on Friday said it achieved record revenue and wager turnover during the first quarter, a three-month period ending March 31.

The company said it had $14.2m in revenue during Q1 2021, an increase of 39% from the $10.1m it brought in during Q1 2020.

Quarterly wager turnover was approximately $243m in Q1 2021, which Matteo Monteverdi, CEO of Elys (pictured), said was a company record.

“The disciplined growth strategy we previously set out has been executed extremely well,” Monteverdi said in a statement. “Our web-based gaming turnover increased by an impressive 150% over the same period last year and we continue to generate strong cash flow from operations. Our management team is working to further capitalize on the success of our operations in Italy by focusing product distribution under our strong Multigioco brand.”

CFO Mark Korb said Elys posted a net loss of $609,000 during the first quarter of this year, compared to net income of $158,000 in the same quarter of 2020. Korb attributed the swing to the company making significant investments to support its US expansion.

“These investments have resulted in short-term, non-recurring expenses as we address key regulatory and policy requirements that have impacted our bottom line,” Korb said, adding the Q1 2021 net loss also included approximately $400,000 of stock-based compensation and $250,000 of other expansion expenses.

“We continue to maintain a disciplined spending approach by allocating discretionary cash toward future business opportunities,” Korb continued. “However, we believe we are building a highly scalable business model, with the potential to generate very significant incremental margins, cash flow and profitability.”

Korb reported Elys generated more than $3.9m in proceeds from the exercise of warrants during the Q1 2021, which he said streamlined the company’s capital structure. As of March 31, it had more than $21.5m in cash and cash equivalents, with no long-term debt, he noted.

Michele Ciavarella, executive chairman of Elys, added: “We are more encouraged than ever by the outlook for the business both in Europe and as we plan our expansion into North America, especially as and when the pandemic begins to wane and land-based operations resume. Given the successful track record in Italy, we believe that we are ideally positioned to become a competitive player as regulations evolve, opening up new markets across North America and Europe.”

Michael Bartlett

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