Executive Summary

Revenue declined 13.6% year over year to $12.24M, driven by the strategic exit of Ulisse land-based operations; net loss widened to $2.55M with higher gaming tax rate and increased G&A tied to U.S. expansion .
Service revenues rose sharply (+615% YoY) to $0.66M, supported by the U.S. Bookmaking (USB) business and platform services; sportsbook hold improved to 18.3% in Q1 .
Management advanced U.S. scaling: operations commenced at Ocean Casino Resort (March 2022) and a ten-year sportsbook platform term with Lottomatica focused on North America, positioning mid-term catalysts .
In Italy, Elys acquired ~50 ADM land-based license rights in Q1 and targets another ~50 over 12–18 months; CFO expects these rights could add ~$20M annual revenue on return-to-retail strategy, a potential medium-term upside .

What Went Well and What Went Wrong

What Went Well

U.S. expansion execution: “initiating land-based betting operations at Ocean Casino Resort in New Jersey ahead of a larger grand opening” and a bespoke platform deal with Lottomatica to accelerate North American growth .
Strong service revenue growth: Service revenues increased 614.8% YoY to $0.66M, reflecting USB and platform royalties (albeit still a small base) .
Sportsbook operating quality: Sportsbook hold improved to 18.3% from 16.9%, aiding overall mix despite lower sports betting turnover post-Ulisse consolidation .

What Went Wrong

Revenue and profitability compression: Revenue fell 13.6% YoY to $12.24M; net loss expanded to $2.55M, as the exit of Ulisse land-based operations reduced GGR and higher G&A for U.S. build-out weighed on results .
Higher gaming tax burden: Gaming tax rate rose to 24.4% (from 19.1%) as mix shifted to Multigioco Italy (higher tax regime), trimming Net Gaming Revenues .
Selling expense still significant: Commissions tied to handle remained structurally high (4.3% of turnover), offsetting some benefits from web-based growth despite slight improvement versus prior year .

Financial Results

Consolidated P&L (YoY comparison)

Metric	Q1 2021	Q1 2022
Revenue ($USD)	$14,157,328	$12,235,986
Net Loss ($USD)	$(609,579)	$(2,554,216)
Loss per Share (basic & diluted)	$(0.03)	$(0.11)
Selling Expenses ($USD)	$10,661,815	$9,286,232
G&A Expenses ($USD)	$4,145,210	$5,009,384
Loss from Operations ($USD)	$(649,697)	$(2,059,630)

Key Margins and Mix

Metric	Q1 2021	Q1 2022
Sportsbook Hold (%)	16.9%	18.3%
Blended Hold (sports + i-gaming/poker) (%)	7.2%	7.0%
Gaming Tax Rate (% of GGR)	19.1%	24.4%

Segment Breakdown

Metric	Q1 2021	Q1 2022
Betting Establishments Revenue ($USD)	$14,065,599	$11,751,266
Betting Platform Software & Services Revenue ($USD)	$91,729	$484,720
Total Operating Expenses ($USD)	$14,807,025	$14,295,616
Income (Loss) from Operations ($USD)	$(649,697)	$(2,059,630)

KPIs (Disaggregated)

KPI	Q1 2021	Q1 2022
Turnover (Handle) – Web-based ($USD)	$231,332,159	$215,780,282
Turnover (Handle) – Land-based ($USD)	$11,825,830	$1,785,107
Gross Gaming Revenues ($USD)	$17,394,637	$15,311,155
Gaming Taxes ($USD)	$3,329,038	$3,730,830
Net Gaming Revenues ($USD)	$14,065,599	$11,580,325
Service Revenues ($USD)	$91,729	$655,661

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Italian land-based retail contribution (annual)	Multi-year (post redeployment)	N/A	“could generate additional revenue of approximately $20 million per year” from additional ADM license rights and certification	New qualitative target
U.S. operations launch milestones	2022	N/A	Ocean Casino sportsbook operations commenced March 2022; broader grand opening expected ahead of NFL season	New milestone
North America digital/mobile expansion	2022–2023	N/A	Ten-year customized sportsbook platform partnership with Lottomatica to accelerate North American expansion	New strategic framework

Note: No explicit quarterly revenue/EPS guidance ranges were provided in Q1 filings. Management commentary implies strategic/operational milestones rather than numeric quarterly guidance .

Earnings Call Themes & Trends

No Q1 2022 earnings call transcript was located; themes reflect 10-Q MD&A and contemporaneous press releases.

Topic	Previous Mentions (Q3 2021)	Current Period (Q1 2022)	Trend
U.S. expansion (licenses, operations)	First Class B license in DC; USB acquisition; plan to start NJ in March 2022	Ocean Casino operations began in NJ; bespoke Lottomatica deal to accelerate NA platform deployment	Improving execution
Italian market mix shift	Ulisse CTD exit; web-based growth; higher gaming taxes via Multigioco	Continued web-based predominance; much lower land-based turnover; tax rate up to 24.4%	Structural shift persists
Margin dynamics (hold/taxes)	Blended hold lower with i-gaming mix; sportsbook hold 14.8% (Q3)	Sportsbook hold improved to 18.3%; blended hold at 7.0%; higher tax rate	Mixed (hold up, taxes up)
Regulatory/legal backdrop	Italian license renewals/moratorium; EU context; ongoing compliance	Ongoing ADM framework; incremental ADM license rights obtained to rebuild retail	Neutral to positive
Macro (FX/Inflation/Ukraine)	FX sensitivity; COVID impacts	Inflation noted; FX/Ukraine war commentary—no material operational impact yet	Watchful neutral

Management Commentary

“Elys achieved a strong fourth quarter to power our full-year 2021 results… and GAAP revenue of $45.5 million… positioning Elys to improve execution efficiency and scale up quickly in 2022 by converting investments into revenue generating deployments…” — Michele Ciavarella, Executive Chairman .
“As part of our B2C operational strategy in Italy… we acquired approximately 50 ADM land-based license rights… instrumental in re-deploying our retail distribution… We expect this investment… could generate additional revenue of approximately $20 million per year…” — Carlo Reali, Interim CFO .
“We are very pleased to collaborate with industry leader Lottomatica… to design, develop and service a customized sportsbook technology platform… focused on North America” — Michele Ciavarella .

Q&A Highlights

No Q1 2022 earnings call transcript found; no analyst Q&A available in filings or document catalog for this quarter. The company communicated key updates through the 10-Q and press releases .

Estimates Context

Wall Street consensus (S&P Global Capital IQ) for Q1 2022 EPS and revenue was unavailable due to missing CIQ mapping for ELYS; therefore, comparison to sell-side estimates cannot be provided. This likely reflects limited coverage for the micro-cap profile.

Key Takeaways for Investors

Near-term results remain pressured by the deliberate exit of Ulisse’s land-based footprint: revenue down 13.6% YoY and net loss widened; gaming taxes higher given domestic Italian mix .
Quality of wagering operations improved: sportsbook hold rose to 18.3%, suggesting sound risk management, even as blended hold is diluted by i-gaming/poker mix .
U.S. scaling is tangible: Ocean Casino operations started in March and the Lottomatica platform agreement provides a long-duration growth path in North America .
Italy retail rebuild is underway: ~50 ADM rights acquired in Q1 with a plan to add ~50 more; CFO’s ~$20M annual revenue potential from redeployment is a credible medium-term lever if licensing and certification proceed as planned .
Expect continued investment in U.S. personnel, licensing and technology, keeping G&A elevated near-term; monitor path to service revenue scale and margin lift as additional U.S. venues onboard .
Risk watchlist: higher Italian gaming tax load, FX sensitivity (EUR/USD), license renewal timing in Italy, and execution dependencies for U.S. certifications and openings .
Trading implications: stock narrative likely hinges on visible U.S. property launches and Italian retail redeployment milestones; without sell-side estimate context, catalysts are operational announcements and contract wins .

Elys BMG Group, Inc. (ELYS)·Q1 2022 Earnings Summary