Q1 2022 was a mixed bag for Elys, which despite making modest strides from Q4, remains below the first quarter of 2021 in many areas.
For example, its turnover exceeded $217m, an improvement over the prior quarter’s nearly $215m. Moreover, disaggregated sportsbook hold continued to reach double-digit levels, amounting to 18.3%.
However, Elys’ performance year-on-year paints a markedly different picture. While revenue climbed on a quarterly basis, it remains below Q1 of last year by $2m.
This had a knock-on effect on Elys’ loss from operations, which grew on a year-over-year basis, increasing to $2.1m from $600,000, and in spite of a $500,000 decline in costs and expenses.
Elys attributed this year-on-year revenue decrease to Covid-19, remarking: “The decrease in revenue from Q1 2021 to Q2 2022 of $2m is due to the pandemic-related closure of our land-based locations in Italy from June 2021, impacting directly on the loss from operations.”
But Elys expects to rebound in Italy, adding: “We anticipate that we will regain this market share and improve our performance as we deploy land-based operations in new locations throughout Italy in the coming 12 to 18 months.”
This latter point likely includes Elys’ recent agreements to deploy virtual sports wagering products in approximately 5,000 locations throughout Italy, to be operated by its Italian subsidiary Multigioco.
“Our tactical movements in the Italian market have resulted in profitable achievements ahead of schedule as our divisional management at Multigioco took advantage of Covid lockdowns to port closed land-based operations and grow our online channel,” said Michele Ciavarella, Elys Game Technology’s Executive Chairman.
He added: “We expect that the recently obtained ADM (Italian regulator) rights in Italy will return Multigioco B2C land-based operations to pre-Covid levels through the remainder of 2022.”