A strong year-on-year growth was reported on a blended revenue basis across land-based and interactive channels, with all products combined (including virtual). European operations saw organic growth while processing an increase of 121%, reaching a record $436.3m, alongside a $220.1m in YTD and Q2 betting handle, which was an increase of 134%.
The betting handle conversion to gross gaming revenue (GGR) saw an increase of 84%, to the value of $32.3m and $14.9m, increasing by 154% in the YTD and second-quarter periods. This resulted in record blended revenues of $25.8m, with a 73% increase to $11.7m, with Q2 total revenue increasing to 143% over the prior year.
Elys returned a gain of 148% on a six-month basis, whereby the percentage dropped slightly to 145%, halved on a three-month basis. Due to Covid-19 (coronavirus) related lockdown procedures, land-based operations remain shuttered. Elys anticipates that a portion of land-based operations will re-open by the beginning of the 2021-2022 football season in Europe. The company’s sportsbook hold, blended across both interactive and land-based channels, remained at consistent levels at 16% YTD and 15% over the six and three months ended 30 June 2021.
As Elys continued to invest in licensing, technology, legal and accounting costs, these were allocated to preparation of its registration statement. This accrued additional costs and expenses of $8.9m, and just over half that amount for the six and three months ended in June, at $4.8m. The largest share of the expenses went toward platform development and the building of US and Canadian infrastructure. This resulted in a consolidated net loss from operations of $3.3m, which saw an increase of 267% in comparison to a net loss from operations of $0.9m over the same period in 2020, whereas during the second quarter, the figures showed an increase of 32.1% with a net loss of $2.7m.
Michele Ciavarella, Elys Executive Chairman, said: “We are delighted to have completed the acquisition of USBookmaking by means of a Membership Interest Purchase Agreement and have assumed its operations in the third quarter. The transaction represents a fundamentally strategic milestone for the company by bringing a highly talented and dedicated team with extensive US sportsbook experience and strengthens our core European-based trading and risk-management division. USBookmaking immediately opens our US footprint in four states, as well as collaboration with existing and new customers on product innovation and dialogue on the next generation of our US sportsbook offerings.
"Over the next six to 12 months, USBookmaking expects to integrate our recently debuted US Elys Gameboard system on its robust pipeline of new operators, culminating with the conversion of existing operators as such contracts expire in late 2022. The addition, USBookmaking continues the global diversification of Elys’ corporate infrastructure by expanding our B2B footprint into North America while leveraging the strong growth that we are experiencing in our core European-based B2C business.”
Mr. Ciavarella continued: “With these second-quarter results and the current trends across our businesses, we remain on track to meet or exceed our 2021 objectives. Considering the significant tailwinds boosting the entire sports betting and iGaming sector in new markets both in Canada and the US, and a number of strategic growth opportunities on the radar in Europe, we remain confident in the sustainability of our long-term vision and growth strategy.”
