Elys Game Technology reports $1.4m annual revenue decline
Blame placed on the strengthening of the dollar and closure of its Italian operations.
Elys Game Technology has reported a revenue of $12.3m for Q2, which is a $1.4m year-on-year decrease. It has attributed this drop to the strengthening of the dollar against the euro, with its revenue being primarily denominated in euros.
Also blamed for this performance was the closure of the company’s data center locations in Italy in 2021, investments in Washington DC, and construction efforts at the Ocean Casino Resort in Atlantic City.
These expenses were slightly offset by a strong performance by Ely’s Multigioco, a virtual gaming operator. The company hopes to regain lost revenue through the reopening of land based locations across Italy in the next 12-18 months.
Operational losses totaled $2m for the second quarter of this year when compared to $0.6m in for the same prior year period. However, there were still bright signs in what was overall an underwhelming quarter for Elys Game Technology.
Cost and expenses went down from $14.8m to $14.3m year-on-year, which can be partly explained by the company scaling down its Italian operations. European operations achieved net profitability of $0.19m for the first half of 2022 while selling expenses decreased from $9.3m in Q1 2022 to $7.9m this quarter.
Disaggregated sportsbook hold continued to perform in double digits at 16.6% in Q2-2022 compared to 14.8% in Q2 of 2021.
Elys Game Technology Executive Chairman Michele Ciavarella commented: “The first half of 2022 finished strong considering the absence of land-based B2C operations in Italy as well as our continuing technology investments for US facing deployments in DC as well as at the Ocean Casino Resort in New Jersey.
“Our mobile and online channels through our Multigioco subsidiary carried outstanding results for the second consecutive profitable quarter in line with the corporate pathway-to-profitability mandate that we set out in Q1 of 2022.”
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