Elys Game Tech: We are eager to compete with well-known American operators
Following a third quarter in which the group showed a lot of hope, Elys Gaming Technologies has emphasized delight at going "up against the main US mobile providers."
Elys mentioned a 2016 roadmap that has "gone full circle" on a European basis, in addition to a US approach that has "proved to be a terrific success."
This is because of the group's "return to profitability through Q3 2022" and its "considerable headroom for continuing expansion of sales and earnings through 2023," according to the statement.
These statements were made as revenue for the third quarter of the year climbed by 20% to $9.6 million (2021: $8 million), but year-to-date revenue decreased by 5% to $32.2 million (2021: $33.9 million).
Each of the aforementioned time periods was stated as having foreign exchange headwinds; the latter is reported to have been harmed by Italian shop closures the year before.
The cost of operations was stable through the quarter at $3.1 million but increased to $8.6 million (2021: $6.4 million) over the course of the nine-month period. Expenses for the quarter increased to $12.7 million (2021: $11.1 million) but decreased for the YTD to $39.6 million (2021: $40.3 million).
Online and retail channels had to have "continued to expand" under the aforementioned simplified approach in Europe, where Elys boasts B2C online and land-based gaming activities in Italy through the Multigioco subsidiary.
According to reports, digital revenue increased "by around $900,000" year over year, while land-based revenue, which reflects the reopening of facilities as a result of COVID-19, increased by double to $700,000.
As venues reopen in new places across Italy in the ensuing three to six months, Elys anticipates that it will continue to make up lost income as a result of pandemic closures and enhance the group's performance nationwide.
Carlo Reali, Elys' interim chief financial officer, has stated the company's future goals, including a 20% market share capture target and a "substantial improvement" to operational profit. The market is now valued at $3 billion.
According to Elys, it is its intention to broaden its presence in the US "prudently by picking states that have accepted regulation of retail channel operators at the local economy level rather than primarily mobile and digital channel distribution."
Based on a variety of previous initiatives the organization has launched in Ohio, Maryland, and Washington, DC, Elys has also highlighted a number of initiatives scheduled to materialize in 2019.
Operations are planned to start in 2023 with a second facility in Washington, DC, and to grow into the other two US states stated above. Another report claims that a US mobile cooperation with Lottomatica is on track to start in 2023.
"Our US approach has also proven to be a fantastic success with the real-money deployment of both our small and big retail platform designs at Grand Central Restaurant Bar and Sportsbook and Ocean Casino Resort, respectively," said Michele Ciavarella, Executive Chair of Elys.
Elys is in a league of its own as a crucial B2B provider for land-based businesses and casinos across the expanding and emerging regulated US sports betting sector because to these two extremities of the retail distribution channel.
In fact, Grand Central's performance as a proof of concept offered Elys an early mover advantage in the small company sector. As the market evolves in the next years, we anticipate that many states in the US will embrace this strategy.
In addition, "Elys has progressed the build-out of its US digital solution to deliver sportsbook technology and services for market leader Lottomatica for a prospective debut in Q1-23," it was said.
"On the strength of Lottomatica's strong market position, we are extremely eager to compete against the main US mobile providers with our potent Elys Gameboard technology.
In addition to using the market expertise we have built in the regulated Italian industry for the past 20+ years, this digital distribution will complete Elys' comprehensive suite of sportsbook technologies in the US.
