Elys Records High Revenue Growth amidst Third Quarter Dip
Despite growth in wagers placed across its gaming and retail outlets, Elys Game Technology has reported a dip in its third quarter’s assessment.
In its financial and operating results for nine and three months which ended on September 30, 2021, the gaming and sports betting provider recorded a 13.9% growth in staking, which amounted to $163.7m over the three months to September 30.
A large part of the total wagers was placed online, accounting for $162.5m, while a further $1.2m was stakes in-person.
In the quarter reviewed, payouts increased 15.9% to $153.4m, of which $152.3m was online, and $1.0m was land-based. This left gross gaming revenue of $10.3m, down from $11.4m in 2020.
Gaming taxes deducted $2.5m from the revenue, which led to a $7.8m net revenue. Additional service revenue brought the total net revenue to $8.0m, down 17.5% last year.
In the third quarter, the expenses for the company increased from $10.3m to $11.1m, of which $6.1m was related to the sale of its product and solutions, and $5.1m was general expenses.
Operating losses for the quarter were $3.1m, an increase of 416.7% from last year. Losses for the year so far are more than three times higher than last year, increasing to $6.4m from $1.5m.
Other expenses amounted to $699,838, mostly consisting of $200,000 losses on marketable securities and $569,076 from a change of contingent purchase consideration. Gross gaming revenue for the first nine months of the year was $42.6m. This was after the company paid out total winnings of $584.3m, $573.0m online, and $11.4m for land-based. Gaming taxes of $9.1m were deducted from the gaming revenue, leaving it at $33.4m - a 35.8% high compared to 2020.
The Company continues to grow its core business that is reflected by robust increases in handle and record revenues of $37.3 million for the first nine months of the year and $8 million in the third quarter of 2021.