Elys BMG Group, Inc.

For the first 9 months, Elys reported almost $627 million in betting handle, up about 77% year over year, and revenue of $33.9 million, up 37.3% year over year. Q3 betting handle was $163.7 million, and yield to date was about $42.6 million. Net loss from operations for the first 9 months was $6.4 million. Management did not provide a full-quarter EPS figure in this transcript. Looking ahead, management said Q4 should be the first quarter to reflect income opportunities in the U.S. and Canada, and that 2022 should better reflect those revenues as additional locations are deployed.

Michele Ciavarella framed Elys as a technology-led sportsbook company with a microservices-based platform designed to scale down for small venues and scale up for larger operators. He stressed that the company did not simply repurpose a European platform for the U.S.; instead it built a new U.S. environment, secured its first U.S. license, opened its first location, and is now live rather than just talking about entering the market. His tone was confident and promotional, emphasizing that the company is well-positioned, has a strong pipeline, and will broaden from a small restaurant/bar launch into larger casinos and digital opportunities.

The financial commentary focused on growth funded by reinvestment: the company said it has good, sustainable cash and no debt, which management described as important because it avoids creditor overhang. Ciavarella said the business has ramped to almost $627 million of handle and $33.9 million of revenue over 9 months, but that the $6.4 million net loss from operations reflects accelerated spending on technology, personnel, and U.S./Canada expansion. He also said the founders own about 47% of the company and that management is keeping expenses tight while continuing to invest for future growth.

Analysts asked about the business pipeline, and management said it is “extremely strong,” with more interest building even before Grand Central launched, and that the company expects to identify the next targets within weeks. On rollout strategy, management said it is pursuing both small restaurants and larger resort casinos, while also preparing for digital-state opportunities. Questions on crypto were answered cautiously: the platform can accommodate it, but regulation has to catch up first. Management also addressed the stock-price decline by saying the share price is too low relative to sales, technology, and the U.S./Canada opportunity, and said Jefferies’ due diligence should help validate the story for institutional investors.