Elys Game Technology reports Q3 revenue dip

Lea Hogg November 22, 2023

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Elys Game Technology reports Q3 revenue dip

Elys Game Technology revealed a Q3 2023 revenue decrease to $8.5 million, an 11.8 percent drop. The company reported a year-on-year decline attributed to higher sportsbook payouts and reduced web-based turnover.

Revenue decline and sportsbook payouts

While revenue faced a decline, turnover experienced a slightly smaller drop of 2.4 percent, settling at US $162.6 million during the third quarter of 2023.

Notably, the company managed to offset some of these challenges with decreases in general and administrative costs, coupled with reduced technology development costs, resulting in a 10.2 percent decrease in operating expenses to US $11.4 million.

The company attributes this downturn to increased payouts for sportsbook customers and a reduction in web-based turnover due to scaled-back online casino and poker offerings during the quarter, particularly in what Elys describes as a historically quiet period for sports betting.

Operational efficiency: operating expenses and net loss reductions

The net loss also witnessed a reduction, totalling US$3.2 million for Q3, compared to US $3.8 million in the same period in 2022.

Mike Ciavarella, Executive Chairman of Elys Game Technology, (in photo above), expressed confidence in the company’s trajectory, stating, “Over the past few years, we have executed our go-to-market strategy by making significant investments related to our product platform and infrastructure development for our future commercial operations in North America.”

Ciavarella added, “Elys now stands at the inflection point where these investments begin to convert into revenues in 2024. As we begin our strategic rollout into the vast addressable online sports betting market in the US, we are confident in our ability to replicate our Italian success story.”

Strategic Outlook for 2024 – optimistic horizon

Elys Game Technology’s Executive Chairman, Mike Ciavarella, anticipates a conversion into revenues in 2024. With a focus on the US online sports betting market, the company aims to replicate its Italian success and gain substantial market share.

Despite the Q3 challenges, Elys Game Technology highlighted several achievements during the quarter, including a multi-year market access agreement with Caesars Entertainment, the launch of a new online and mobile sports betting brand for the US market, completion of the North American hub infrastructure, enhanced offerings in Italy through its subsidiary Multigioco, and securing a third sportsbook location in Washington, DC. The company is poised for strategic growth in the evolving landscape of online sports betting.

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