Elys Game Technology Corp reported $37.3m in revenue for financial year 2020, year-on-year growth of 5% despite 2020 being a pandemic year. The results show the strength of Elys’ (formerly Newgioco) digital business, as retail operations would have either been closed or hit hard during Covid-19 shut downs.
When new CEO Matteo Monteverdi took the reins in late 2020, he spoke exclusively to Gaming America, again emphasising Elys’ digital growth. He also, however, targeted several new projects in the US, stating that he wants to replicate the company’s European model in North America. “I think we have the opportunity to significantly increase our financial performance by executing a few basic things very well,” he said. “The market is there, a need for newer solutions exists and Elys Game Technology is here to deliver.” Elsewhere on the horizon is the pending legalization of single-event sports wagering in Canada, with the potential of this market combining with the company’s financials to boost its share performance so far in 2021.
In Elys' financial report, Monteverdi commented: “Our multi-faceted approach allowed us to adapt to evolving market conditions and grow. The increase in revenue to $37.3mfor the full year of 2020 reflects the strong growth in our web-based gaming turnover, which increased 54% versus 2019. This increase was offset by a decline in our land-based gaming turnover, which has been impacted by the shutdown of betting shops in Italy due to the coronavirus pandemic.”
Elys’ costs did rise by 16%, though, to $44.8m, which actually resulted in a loss from operations of $7.5m for the firm, whereas it lost $3m for 2019. Despite this, CFO Mark Korb said Elys continued to carefully manage expenses and have a solid balance sheet with over $18.9m of cash as of December 31, 2020. He explained: “We believe we are very well positioned heading into 2021 to execute our vision of building a premier, end-to-end sports betting solution for European and US gaming operators.”
Former CEO Michele Ciavarella, now Elys executive chairman, added: “These results reflect the success of our omni-channel approach, combining the best of both online and land-based retail betting with balanced product diversification, backed by our committed management teams. Elys not only achieved record revenue for 2020 but also broke through a major milestone by surpassing our half-billion dollar objective – reaching $575m in gaming turnover despite the challenges brought on by the pandemic.”