Elys Game Technology reported a 12% drop in revenue for the second quarter, which the company attributed primarily to currency fluctuations.
Elys generated $10.3 million in revenue in the second quarter, a $1.4 million decrease from $11.7 million the previous year. The company attributed this to the “strengthening of the US dollar against the euro.”
Because Elys’ revenue is primarily denominated in euros, the company’s top-line performance has suffered year over year.
The prior-year closure of Elys’ CTD locations in Italy also had an impact on revenue, though this was partially offset by online growth.
Expenses also decreased year on year, falling from $14.4 million to $12.6 million. As part of the company’s “pathway-to-profitability” mandate, Elys implemented a “expense reduction plan” at the corporate level.
This resulted in a $1.2 million one-time severance cost, bringing the company’s total expenses for Q2 to $13.8 million. This, however, is expected to result in long-term savings.
Overall, Elys’ cost-cutting efforts were insufficient to offset a growing net loss, which amounted to $3.8 million in Q2, an increase of about $1 million from the previous year.
Elys experienced a similar trend over the past six months. Revenue fell from $25.9 million to $22.6 million, while net loss increased from $3.4 million to $6.4 million.
“The first half of 2022 finished strong considering the absence of land-based B2C operations in Italy as well as our continuing technology investments for US-facing deployments in DC, as well as the Ocean Casino Resort in New Jersey,” said Michele Ciavarella, Executive Chairman of Elys Game Technology.
“Our outlook for the remainder of 2022 and through 2023 is to focus on reopening land-based locations in Italy as well as new US locations that we expect to launch in multiple states over the next 12 to 18 months,” Ciavarella said.