Elys BMG Group, Inc. (ELYS)·Q1 2023 Earnings Summary

Executive Summary

• Q1 2023 revenue was $12.43M, up 1.6% year over year, driven by Italian land-based ramp; net loss narrowed to $2.29M, and diluted loss per share was $0.07 .
• Land-based turnover surged 380% YoY to $8.57M (EUR +402%), lifting blended GGR to 7.5% vs 7.0% a year ago; web-based turnover declined on FX headwinds and mix shift away from lower-margin poker .
• Management highlighted cost discipline (USB cost reset, corporate cost reduction), continued U.S. platform and licensing progress, and financing actions post-quarter ($1.5M secured debentures and warrants) to support mobile product and U.S./Canada expansion .
• No earnings call transcript or numeric guidance was issued for Q1; Wall Street consensus estimates via S&P Global were unavailable.
• Near-term stock reaction catalysts: acceleration of Italian location activations, Virtual Generation product certification/launch in Italy, and tangible U.S. deployments or mobile go‑live milestones .

What Went Well and What Went Wrong

• What Went Well

  • Strong land-based recovery: 53 acquired location rights activated in H2’22, with remaining 47 targeted for H1’23, fueling a 402% Euro land-based turnover increase and supporting higher-margin sports/virtual mix .
  • Blended GGR improved to 7.5% on mix shift toward sports; net loss narrowed by ~10% YoY as corporate and USB expenses were reduced .
  • Strategic U.S. progress: GLI-33 certifications, D.C. Class B operations, Ocean Casino deployment, Lottomatica master agreements and TSAs for a dedicated SBP; management noted “early mover advantage” in small business retail .

• What Went Wrong

  • FX headwinds and poker decline: web-based turnover fell 7.4% in USD (Euro −3.1%) as U.S. dollar strength and a 68% reduction in online poker turnover weighed on the channel .
  • Selling expenses increased to $9.87M (+6.3%) and as a % of turnover to 4.7%, reflecting promotional ramp supporting new land-based locations .
  • U.S. Bookmaking division required remediation; management continues to dispute legacy USB notes and pursue legal remedies against former management, keeping legal overhangs .

Financial Results

Segment breakdown (Q1 2023):

Guidance Changes

Note: No numeric revenue, margin, OpEx, tax rate, or dividend guidance was issued in Q1 documents.

Earnings Call Themes & Trends

No Q1 earnings call transcript was found.

Management Commentary

• “Multigioco activated 53 acquired location rights during the second half of 2022 and expects to activate the remaining 47 locations over the first half of 2023, that we expect will continue to positively impact operating results over the next 12–18 months.” .
• “Our go-to-market strategy for our first full year of U.S. facing operations reflected remarkable service-based revenue growth of 150.2% or $1.6 million to $2.6 million… we expect to launch our U.S. ready mobile solution in multiple states and Canada in the near future.” .
• “The road map we set out in 2016 has come full-circle with European operations streamlined and returned to profitability… success of Grand Central… could represent a strong driver for local economic development and… customer acquisition draw” .
• On mix and margins: “Sports betting turnover represented 27.6%… casino 71.3%… blended GGR of 7.5% (March 31, 2022 – 7.0%).” .

Q&A Highlights

• No Q1 2023 earnings call transcript available. No Q&A disclosed.

Estimates Context

• Wall Street consensus for Q1 2023 revenue and EPS from S&P Global was unavailable due to missing CIQ mapping. Where estimates are needed, acknowledge unavailability.
• Implication: Post-fact comparisons to consensus cannot be assessed; investors should rely on company-reported performance and pipeline/milestone execution signals.

Key Takeaways for Investors

• Italian land-based ramp is the key near-term driver; higher-margin retail mix lifted blended GGR despite web channel softness and FX headwinds .
• Cost controls and USB remediation reduced corporate and divisional drag; watch for further legal resolution to remove noise .
• Strategic U.S. platform positioning (GLI certifications, Ocean Casino, D.C., Lottomatica SBP) provides optionality; tangible deployment/migration milestones are critical catalysts .
• Financing actions post-quarter ($1.5M secured debentures with warrants) bolster liquidity ahead of mobile and multi-jurisdiction launches; monitor dilution/Exchange Cap mechanics .
• VG mid-2023 Italian launch could add attractive-margin revenue; certification and early adoption pace to determine contribution magnitude .
• FX sensitivity remains material given Euro-denominated operations; performance ex-FX appears stronger than reported USD figures .
• Near-term focus: execute the remaining 47 Italian activations, deliver VG launch, and show incremental U.S. wins (venues, states, mobile go‑live).

Appendix – Additional Data Points

• Revenue composition Q1 2023: Net Gaming Revenues $11.85M; Service Revenues $0.58M .
• Selling expenses $9.87M; G&A $4.45M; D&A $0.35M in Q1 2023 .
• Balance sheet (Q1 2023): Cash & equivalents $3.24M; Total assets $24.29M; Stockholders’ equity $8.07M .
• Subsequent event (May 5/8, 2023): $1.5M convertible debentures; warrants to purchase 3,138,075 shares at $0.48; senior secured .

Search notes:

• Read Q1 2023 10‑Q in full –.
• Read FY 2022 10‑K for strategic context –.
• Read Q2 2022 and Q3 2022 8‑K press releases for trend analysis – –.
• Read April 5, 2023 8‑K and press release (Ex.99.1) for FY’22 preliminary and operational updates –.
• No Q1 2023 earnings call transcript found.