Elys Gaming Technologies, previously known as the Newgioco Group, has released its financial report for the third quarter of 2020. Income rose by 43.6% year-on-year, while net losses dropped to less than $1 million.
Elys’ income growth and reduced net losses are noteworthy. The firm’s income for the three months concluding September 30 increased by 24.0% to $143.7 million, with digital operations becoming the primary channel during the quarter.
Online income increased by 153.7% year-on-year to $117.9 million, offsetting a 62.8% decrease in digital betting income to $25.8 million. After paying out $132.3 million in winnings to players, Elys’ gross income from its Italian gaming products was $11.4 million.
After subtracting taxes and duties, net gaming income was $9.7 million, an increase of 46.7%, slightly boosted by $33,955 in contributions from gaming platforms and services.
The income growth resulted in an increase in costs to $10.3 million, primarily driven by a 79.0% increase in sales and marketing expenses to $7.2 million. This led to an operating loss of $609,332 for the firm, compared to a profit of $426,561 in the third quarter of 2019.
Elys subsequently recorded $422,047 in non-operating expenses, meaning the company’s pre-tax loss nearly doubled to $1 million. After paying income taxes, the net loss for the third quarter increased to $1.2 million.
However, the business recorded a currency exchange conversion profit of $218,193 in the following period, in contrast to a cost of $265,231 in the equivalent timeframe last year.
In the end, the company’s combined loss for the three-month period was $995,088, a decrease of 3.8% from the corresponding timeframe last year.
Following the conclusion of the three-month period, the operator rebranded to Elys Game Technology, which the company stated better reflected its endeavors to expand beyond its Italian origin market and into the United States.
New US clients will be sought out through Elys Gameboard Technology, a business established in June.
The company will provide the Elys wagering platform, which received approval from Gaming Laboratories International in September, an initial step in bringing the platform to the market. This will commence in Washington D.C. through an agreement with sports bar startup Handle19.
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