SPORTS BETTING

Italy – Elys Game Technology reports growth in Italian betting market

By Phil - 11 April 2023

Elys Game Technology, an interactive gaming and sports betting technology company, has reported that growth continued in its licensed Italian facing B2C market as its Euro based turnover increased by 2.7 per cent for the fiscal year ended 31 December 2022, to €730.5m from €711.4m for the fiscal year ended 31 December 2021.

The average U.S. Dollar exchange rate strengthened by over 10 per cent from $1.1834 in 2021 to an average rate of $1.0543 in 2022, which resulted in the Company reporting a net decrease in reported turnover of $71.7m from $841.9m to $770.2m, a net currency impact of approximately $94.2m.

Management expects Gross Gaming revenues (GGR) from Euro based operations to increase by approximately 3.7 per cent to approximately €50.1m from €48.3m for the fiscal year ended 31 December 2022 and 2021, respectively, subject to final audit verification. The strengthening of the US Dollar against the Euro resulted in the Company reporting GGR of $52.9m a decrease of $4.3m compared to $57.2m in the prior year report, a net adverse foreign currency swing of approximately $6.4m, subject to final audit verification.

The company stated: “The streamlining of our European operations towards our Multigioco subsidiary resulted in gaming taxes increasing by €1.4m or 13.1 per cent to €12.1m from €10.7m for the years ended December 31, 2022 and 2021, respectively, which fell in line with our expectations after shutting down our Ulisse operations in the prior year. “

“Multigioco activated 53 acquired location rights during the second half of 2022 and expects to activate the remaining 47 locations over the first half of 2023, that we expect will continue to positively impact operating results over the next 12 to 18 months. Gaming taxes as a percentage of revenue increased from 22.1 per cent to 24.2 per cent. The strengthening of the US Dollar against the Euro resulted in reported gaming taxes of $12.8m compared to $12.7m for the years ended December 31, 2022 and 2021, respectively, subject to final audit verification.

“Our go-to-market strategy for our first full year of US facing operations reflected remarkable service-based revenue growth of 150.2 per cent or $1.6m to $2.6m, subject to final audit verification. During the fiscal year ended 31 December 2022, the company continued to invest in US expansion through technology and licensing strategies, and as a result we expect to launch our US ready mobile solution in multiple states and Canada in the near future.”

“The company took prompt action to address disappointing cost control performance in the recently acquired US Bookmaking (“USB”) division which led to a dispute and legal proceedings with the former management of USB. The swift decisions of Company management led to immediate improvements in Q4-2022 and put the group back onto to the pathway-to-profitability that we mandated in Q1-2022. These actions are expected to provide year-over-year comparisons beginning in Q1-23.”