In a recent announcement, Elys Gaming shared its unaudited financials for the fiscal year ending December 31, 2021. The company reported remarkable growth across various segments, emphasizing its strategic investments and operational efficiencies.
Impressive Revenue Growth
Elys Gaming expects its full-year net revenue to reach $45.5 million for 2021, marking a significant increase from the $37.3 million reported in 2020. This growth reflects a strategic focus on expanding their market presence and optimizing their operations.
The company’s online division was a major contributor to this revenue surge. Gross gaming revenue from online operations is anticipated to rise dramatically to $54.9 million, up from $31.6 million in the previous year. This 74% positive variance underscores the success of Elys’s digital initiatives and their ability to capture a larger share of the online gaming market.
Strategic Investments in European Operations
Michele Ciavarella, Executive Chairman of Elys, highlighted the success of their European operations. He attributed this growth to the early investments made in developing the Newgioco brand within the Italian market. By streamlining operations under the Multigioco subsidiary, Elys eliminated the duplication of license management, enhancing efficiency and profitability.
Ciavarella expressed confidence in further improving B2C margins through continued operational streamlining. He emphasized the company’s commitment to growing its omnichannel distribution strategy and implementing the Elys Gameboard technology on a B2B basis in Europe. This dual approach aims to leverage both digital and land-based channels to maximize market penetration.
Expansion into the US B2B Marketplace
One of the fastest-growing segments for Elys has been its entry into the US B2B marketplace. Revenues from this sector soared by 627% year-on-year, adding $1 million to the total revenue. This growth was driven by the launch of Elys’s first US operation in October 2021 at the Grand Central Restaurant and Sportsbook in Washington DC.
Ciavarella noted that the company’s initial investment in US-facing sports betting technology began to pay off in 2021. Elys aims to establish itself as a leading end-to-end sports betting enterprise by aligning its product and service offerings to meet the needs of both B2B clients and B2C consumers. This strategic alignment is designed to build a well-managed organization that is highly profitable and sustainable.
Operational Expenses
The financial report also shed light on the company’s operating expenses for 2021. Elys spent $36.3 million on third-party agents and affiliates across Europe. Global administrative expenses totaled $19.1 million. These expenses reflect the company’s extensive efforts to manage its operations efficiently while expanding its market reach.
Elys Gaming’s financial performance in 2021 showcases the company’s robust growth and strategic foresight. With significant increases in both net and gross gaming revenues, Elys has demonstrated its ability to capitalize on market opportunities and streamline operations for greater efficiency. The company’s strategic investments in both the European and US markets have begun to yield substantial returns, positioning Elys as a formidable player in the global gaming industry.