Esports Entertainment Group First Quarter Revenue Rises 86% Q/Q to $16.4 Million


Yr-over-Yr and Quarterly Sequential Development Continues
Reaffirms Fiscal 2022 Income Steerage of Over $100 Million

Hoboken, New Jersey–(Newsfile Corp. – November 15, 2021) – Esports Leisure Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (or the “Firm”) in the present day introduced monetary outcomes for its fiscal 2022 first quarter ended September 30, 2021.

Fiscal First Quarter 2022 Monetary Outcomes

  • Web income of $16.4 million, up $16.2 million in comparison with 1Q21 and an 86% improve in comparison with web income of $8.8 million in 4Q21

  • Gross revenue of $10.0 million, up $10.2 million in comparison with 1Q21 and a 92% improve in comparison with $5.2 million in 4Q21

  • Gross margin of 61%, in comparison with 59% in 4Q21

  • GAAP Web lack of $0.5 million, or $0.03 per share, in comparison with web lack of $1.8 million, or $0.15 per share in 1Q21, and web lack of $4.8 million, or $0.28 per share, in 4Q21

  • Non-GAAP adjusted EBITDA* of ($2.7 million), in comparison with adjusted EBITDA of ($2.6 million) in 1Q21 and adjusted EBITDA of ($5.5 million) in 4Q21

  • As of September 30, 2021, the Firm had whole money and money equivalents of $0.9 million

* Reconciliation on non-GAAP monetary measures supplied within the tables of this press launch.

First Quarter 2022 and Current Operational Highlights

  • Accomplished acquisition of BetHard, the B2C enterprise of Gameday Group, which introduced the Firm gaming licenses in Sweden and Spain

  • Submitted transactional waiver to the New Jersey Division of Gaming enforcement, which, pending closing approval, would permit the Firm to start in-state betting operations

  • Accomplished $8.0 million personal placement of convertible notes with $17.50 conversion value

  • Expanded roster {of professional} sports activities staff partnerships with new agreements with the Indianapolis Colts, Tampa Bay Buccaneers and Los Angeles Chargers

  • Launched fan-centered EGL ClubClash program with skilled sports activities groups

  • Partnered with Corridor of Fame Resort and Leisure Firm to turn out to be the official esports supplier for the Corridor of Fame Village powered by Johnson Controls

  • Entered into settlement to launch state-of-the-art Helix eSports gaming facility at UCLA

  • Established content material partnership with ESTV EsportsTV, the world’s first 24-7 stay linear video channel devoted to esports

  • Partnered with NetEase to turn out to be official North American match and broadcast supplier of Naraka: Bladepoint

Administration Commentary

“Our first quarter income practically matched our efficiency for everything of FY21 and displays our current platform constructing transactions. With the sturdy begin to FY22 and continued momentum in our enterprise, we’re reiterating our expectation that Esports Leisure will eclipse greater than $100 million in income this fiscal yr,” mentioned Grant Johnson, CEO of Esports Leisure Group. “The highly effective mixture of marquee partnerships, expansive portfolio of services and strategic acquisitions is predicted to drive double digit year-over-year and quarterly sequential monetary development all through fiscal 2022. We stay ideally positioned in iGaming and e-sports, two of the quickest rising leisure verticals, and our staff is targeted on executing our fast growth technique, which we count on will additional strengthen our market place and permit us to scale and obtain working leverage from our portfolio of distinctive and highly effective property.”

Fiscal 2022 Monetary Outlook

The Firm expects web income development of not less than 490% to $100 million in FY22, pushed primarily by the platform-building and strategic diversification acquisitions accomplished in calendar 2021.

Convention Name

Esports Leisure Group will host a convention name and webcast in the present day, Monday, November 15, at 5:00 p.m. ET to reply questions in regards to the Firm’s operational and monetary highlights for its fiscal 2022 first quarter in addition to different current developments.

 

For people unable to hitch the convention name, a dial-in replay of the decision can be obtainable till November 29 and will be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (Worldwide) and getting into replay pin quantity: 8268937.

About Esports Leisure Group

Esports Leisure Group is a full stack esports and on-line playing firm fueled by the expansion of video-gaming and the ascendance of esports with new generations. Our mission is to assist join the world at giant with the way forward for sports activities leisure in distinctive and enriching ways in which convey followers and avid gamers collectively. Esports Leisure Group and its associates are well-poised to assist followers and gamers to remain related and concerned with their favourite esports. From conventional sports activities partnerships with skilled NFL/NHL/NBA/FIFA groups, community-focused tournaments in a variety of esports, and boots-on-the-ground LAN cafes, EEG has affect over the full-spectrum of esports and gaming in any respect ranges. The Firm maintains places of work in New Jersey, the UK and Malta. For extra info go to www.esportsentertainmentgroup.com.

FORWARD-LOOKING STATEMENTS

The knowledge contained herein consists of forward-looking statements. These statements relate to future occasions or to our future monetary efficiency, and contain recognized and unknown dangers, uncertainties and different elements that will trigger our precise outcomes, ranges of exercise, efficiency, or achievements to be materially totally different from any future outcomes, ranges of exercise, efficiency or achievements expressed or implied by these forward-looking statements. You shouldn’t place undue reliance on forward-looking statements since they contain recognized and unknown dangers, uncertainties and different elements that are, in some instances, past our management and which might, and certain will, materially have an effect on precise outcomes, ranges of exercise, efficiency or achievements. Any forward-looking assertion displays our present views with respect to future occasions and is topic to those and different dangers, uncertainties and assumptions regarding our operations, outcomes of operations, development technique and liquidity. We assume no obligation to publicly replace or revise these forward-looking statements for any purpose, or to replace the explanations precise outcomes might differ materially from these anticipated in these forward-looking statements, even when new info turns into obtainable sooner or later. The secure harbor for forward-looking statements contained within the Securities Litigation Reform Act of 1995 protects firms from legal responsibility for his or her forward-looking statements in the event that they adjust to the necessities of the Act.

Contact:

US Investor Relations
JCIR
Joseph Jaffoni, James Leahy, Norberto Aja
212-835-8500
gmbl@jcir.com

RedChip Firms, Inc.
Dave Gentry
407-491-4498
dave@redchip.com

Media Inquiries
brandon.apter@esportsentertainmentgroup.com

Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

Esports Leisure Group, Inc.

Consolidated Stability Sheets

September 30, 2021

June 30, 2021

 

 

 

ASSETS

 

 

 

 

 

Present property

 

 

Money

$

926,983

$

19,917,196

Restricted money

2,945,654

3,443,172

Accounts receivable, web

377,673

136,681

Receivables reserved for customers

5,061,768

2,290,105

Different receivables

803,704

658,745

Pay as you go bills and different present property

2,922,104

3,264,344

     Whole present property

13,037,886

29,710,243

 

 

 

Gear, web

789,637

726,942

Working lease right-of-use asset

1,168,635

1,272,920

Intangible property, web

59,030,190

45,772,555

Goodwill

52,328,021

40,937,370

Different non-current property

2,441,080

1,315,009

 

 

 

     TOTAL ASSETS

$

128,795,449

$

119,735,039

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Present liabilities

 

 

 

Accounts payable and accrued bills

$

11,599,709

$

8,458,689

Payable for Bethard acqusition

4,629,388

–     

Liabilities to clients

6,116,869

3,057,942

Deferred income

151,045

22,110

Present portion of notes payable and different long-term debt

219,024

223,217

Working lease legal responsibility – present

375,628

414,215

Contingent consideration – present

3,266,000

–     

     Whole present liabilities

26,357,662

12,176,173

 

 

 

 

 

 

Senior convertible word, web of unamortized low cost

7,941,998

6,302,504

Notes payable and different long-term debt

165,599

221,300

Warrant legal responsibility

11,691,400

23,500,000

Deferred revenue taxes

5,503,861

1,870,861

Working lease legal responsibility – non-current

820,082

878,809

Contingent consideration – non-current

2,583,480

–     

 

 

 

     Whole liabilities

55,064,083

44,949,647

 

 

 

Commitments and contingencies (Word  13)

 

 

 

 

 

Stockholders’ fairness

 

 

Most popular inventory $0.001 par worth; 10,000,000 shares licensed, none issued and excellent

 –     

–     

Frequent inventory $0.001 par worth; 500,000,000 shares licensed, 21,983,172 and  21,896,145 shares issued and excellent as of September 30, 2021 and June 30, 2021, respectively

21,983

21,896

Further paid-in capital

123,264,256

122,341,002

Amassed deficit

(47,460,717)

(46,908,336)

Amassed different complete loss

(2,094,156)

(669,170)

     Whole stockholders’ fairness

73,731,366

74,785,392

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

128,795,449

$

119,735,039

 

 

 

Esports Leisure Group, Inc.

Consolidated Statements of Operations

 

 

Three Months Ended September 30,

 

2021

2020

 

Web income

$           16,408,291

$                   222,392

 

Working prices and bills:

Value of income

6,451,292

420,075

Gross sales and advertising

7,386,463

604,118

Common and administrative

11,175,136

3,055,808

Whole working bills

25,012,891

4,080,001

 

Working loss

8,604,600

3,857,609

 

Different revenue (expense):

Curiosity expense

(2,345,196)

(1)

Change in honest worth of warrant legal responsibility

11,808,600

2,100,953

Different non-operating loss

(1,411,185)

(51,836)

Whole different revenue

8,052,219

2,049,116

 

Loss earlier than revenue taxes

552,381

1,808,493

 

Earnings tax profit (expense)

–    

–     

 

Web loss

$                   552,381

$                1,808,493

 

Primary and diluted loss per frequent share

$                      (0.03)

$                      (0.15)

Weighted common variety of frequent shares excellent, fundamental and diluted

21,954,892

12,173,038

 

Adjusted EBITDA

The desk under presents our Adjusted EBITDA reconciled to our web loss, the closest U.S. GAAP measure, for the intervals indicated:

Esports Leisure Group, Inc.

Adjusted EBITDA

Three Months Ended September  30,

2021

2020

Web revenue (loss)

$

(552,381)

$

 (1,808,493)

 

 

 

 

 

 

Adjusted for:

Curiosity

2,345,196

1

Earnings tax

–     

Depreciation and amortization

3,342,352

266,448

Shared primarily based compensation

882,372

1,007,672

Amortization of debt low cost

1,639,494

–     

Transaction associated bills

63,000

–     

Different non-operating value

1,411,185

51,836

Change in honest worth of warrant legal responsibility

(11,808,600)

(2,100,953)

Whole adjusted EBITDA (loss)

$

(2,677,382)

$

(2,583,489)

 

Non-GAAP Monetary Measures

To complement its consolidated monetary statements, that are ready and offered in accordance with Typically Accepted Accounting Ideas (GAAP), the Firm makes use of adjusted EBITDA, a non-GAAP monetary measure. The presentation of this monetary info will not be supposed to be thought of in isolation or as an alternative choice to, or superior to, the monetary info ready and offered in accordance with GAAP. The Firm makes use of this non-GAAP monetary measure for monetary and operational resolution making and as a way to guage period-to-period comparisons. The Firm believes that it gives helpful details about working outcomes, enhances the general understanding of previous monetary efficiency and future prospects, and permits for higher transparency with respect to key metrics utilized by administration in its monetary and operational resolution making. The non-GAAP monetary measure utilized by the Firm on this press launch could also be totally different from the strategies utilized by different firms.

We outline and calculate Adjusted EBITDA as web loss earlier than the affect of curiosity revenue or expense, revenue tax expense or profit, depreciation and amortization, and additional adjusted for the next gadgets: stock-based compensation, transaction-related prices, non-core litigation, settlement and associated prices, remeasurement of warrant liabilities, and sure different non-recurring, non-cash or non-core gadgets, as described within the reconciliation under.

Adjusted EBITDA excludes sure bills which are required in accordance with U.S. GAAP as a result of they’re non-recurring gadgets (for instance, within the case of transaction-related prices), non-cash expenditures (for instance, within the case of depreciation, amortization, and stock-based compensation), or should not associated to our underlying enterprise efficiency (for instance, within the case of curiosity revenue and expense and litigation settlement and associated prices).

To view the supply model of this press launch, please go to https://www.newsfilecorp.com/release/103549



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous post Bizon faces assault charge after alleged inappropriate touching of health worker
Next post Norfolk car wash nearly out of business after back-to-back burglaries caught on video