Elys Game Technology Reports Second Quarter 2022 Results

Elys Game Technology, Corp. (“Elys” or the Company”)(Nasdaq: ELYS), an interactive gaming and sports betting technology company, today announced the financial results for the quarter and six months ended June 30, 2022.

Release Highlights

• European operations achieve a net profitable position of $0.19 million for the six months period, despite the loss of revenue from the closure of all CTD locations in Q2 2021.
• Despite the effect of the strengthening of the U.S. Dollar against the Euro by 9.2% over the prior period, the shortfall in quarter-on-quarter GAAP revenue (Q1-2022 vs Q1-2021 and Q2-2022 vs Q2-2021) narrowed from $1.9 million to $1.4 million due to an exceptionally strong performance from our Multigioco B2C operations.
• Selling expenses in Q2-2022 decreased to $7.9 million (4.2% of turnover) from $9.3 million in Q1-2022 (4.3% of turnover).
• General and administrative expenses before restructuring and severance expenses decreased from $5.0 million in Q1-2022 to $4.8 million in Q2-2022, including $0.7 million of additional expenses from our US Bookmaking operation, which was acquired in July 2021.
• Disaggregated sportsbook hold continues to perform in double digits at a respectable 16.6% in Q2-2022 compared to 14.8% in Q2-2021.

Michele Ciavarella, Executive Chairman of Elys Game Technology stated: “The first half of 2022 finished strong considering the absence of land-based B2C operations in Italy as well as our continuing technology investments for U.S. facing deployments in D.C. as well as the Ocean Casino Resort in New Jersey. Our mobile and online channels through our Multigioco subsidiary carried outstanding results for the second consecutive profitable quarter in line with the corporate pathway-to-profitability mandate that we set out in Q1 of 2022.

As part of this mandate, we undertook an expense reduction plan at the corporate level by restructuring our U.S. facing management leading to a one-time severance cost of $1.2 million, while our US Bookmaking division experienced higher than expected losses due to excessive administrative costs, which we expect will be resolved quickly.

Technology development investments contributed to our expenses during the first half of 2022, and these are paying off as our engineering team continues to build the large venue casino platform at Ocean Casino Resort as well as the U.S. mobile and digital product build connection with our agreement with Lottomatica S.p.A.