Elys Game Technology reported a gross gaming revenue (GGR) of $10.3m, a decrease of 9.3% year-on-year, despite turnover rising in the third quarter of 2021.
A major reason for the decrease in GGR was due to the company’s hold percentage declining, primarily due to a change in the percentage of turnover that came from sports betting compared to online casino. The company said that the closure of Elys’ Italian retail locations led to higher-margin sports betting declining, while turnover for the lower-margin vertical of online casino rose. As a result blended hold fell from 7.9% to 6.3% year-on-year.
In Q3 2020, sports betting made up 31.4% of turnover, compared to sports betting representing 19.2% of turnover in Q3 2021. Casino games, however, grew to represent 80.1% of turnover in the third quarter of 2021, compared to 67.8% in Q3 2020.
Total turnover for the quarter increased by 13.8% to $163.6m when compared to the third quarter of 2020.
Online turnover made up $162.4m of the turnover total, at a rise of 37.8%. Land-based turnover made up $1.1m, which was a yearly drop of $24.6m.
However, winnings and payouts at $153.3m rose by 15.8%.
After considering $2.5m worth of gaming taxes paid to the Agenzia delle Dogane e dei Monopoli (ADM) and service revenues at $239,490, which increased by $817,378 and $235,535 respectively, revenue totaled $8.0m, a decrease of 17.2% compared to the third quarter of 2020.
Cost and expenses totaled at $11.1m for the quarter, up by 7.9% year-on-year. Selling expenses made up $6.0m of the total, down by 15.3%, while general and administrative expenses at $5.0m rose by 60.7% from Q3 2020.
Operating losses came to $3.0m, a rise of $2.4m yearly. Although other income added $74,327 to the total, other income expenses took away $774,165. This left the loss before income tax at $3.7m, $2.7m more than the previous Q3.
After considering income tax provision at $284,636, the total net loss for Q3 came to $3.5m, which was $2.3m more than the same period of 2020.
This quarter brought revenue for 2021 so far to $33.8m, up by 37.2% compared to the same period in 2020.
In Q3 Elys Game Technology expanded across the US. Last month Grand Central launched its Elys-powered retail sportsbook at its Washington DC location. In July Elys showcased a new betting platform, Elys Gameboard CDI, at the National Indian Gaming Association (NIGA) Trade Show.