Elys Game Technology, the business formerly known as Newgioco Group, has reported a 43.6% year-on-year rise in revenue, while reducing losses to under $1m, in the third quarter of 2020.
Turnover for the three months to 30 September grew 24.0% to $143.7m (£107.4m/€121.0m), with online growing into its dominant channel during the quarter.
Online turnover was up 153.7% year-on-year to $117.9m, which more than offset a 62.8% decline in digital stakes, to $25.8m. After $132.3m in winnings was paid out to players, gross revenue from Elys’ Italian gaming products came to $11.4m.
This was reduced by $1.7m, after taxes and duties, for net gaming revenue of $9.7m – up 46.7% – which increased marginally following a $33,955 contribution from betting platform and services fees.
The growth in revenue led to an increase in costs, to $10.3m, which stemmed largely from selling expenses jumping 79.0% to $7.2m. This resulted in the business swinging to an operating loss, of $609,332, compared to a $426,561 profit in Q3 2019.
Elys then recorded $422,047 in non-operating expenses, which meant that the business’ pre-tax loss almost doubled to $1.0m, with the Q3 net loss increasing to $1.2m after income taxes. However, the business then recorded a $218,193 gain from foreign currency translations, compared to a $265,231 expense in the prior year.
This meant that the business’ comprehensive loss for the quarter came to $995,088, down 3.8% year-on-year.
Following the period end, the operator rebranded as Elys Game Technology, something it said better reflected its efforts to expand beyond its native Italian market and into the US.
New US clients will be pursued through Elys Gameboard Technology, a subsidiary established in June.
It will offer the Elys betting platform, which secured Gaming Laboratories International certification in September, the first step towards rolling it out in the market. This will begin in Washington, D.C., through an agreement with sports bar start-up Handle19.
