Esports Entertainment Sports Betting Canada Success
Posted on May 20, 2021 at 11:05am
Esports Entertainment Group has announced that it has experienced a rise in its revenue. The group published its financial results for the third quarter of the financial year. This period is allocated as the three months ending 31 March 2021. In total, the revenue for this period amounts to $5.4 million, a portion of which comes from sports betting Canada activities.
In order to provide an accurate year-on-year comparison, no revenue was recorded for the three months leading up to 31 March 2020. Nevertheless, the third quarter of 2021 reflected that revenue had increased by 129% from $2.4 million in the three months leading up to 31 December 2020.
The company did announce that it suffered some significant losses. Its adjusted earnings before interest, depreciation, amortization and tax, also known as EBITDA, amounted to a loss of $2.1 million for the quarter. This resulted in a negative adjusted EBITDA of $8.5 million covering the nine months leading up to 31 March. The three months leading to 31 December of 2020 saw a negative EBITDA figure of $3.8 million.
Esports Entertainment Group made another loss of $5.4 million as a result of the change in the fair value of warrant liability. This was accompanied by a loss of $1.3 million resulting from the change in the fair value of contingent consideration. Other miscellaneous losses for the sports betting Canada group amounted to $165,464.
In total, the company saw a net loss of $12.4 million for the quarter. This marks a significant expansion of losses compared with the same period last year, which saw losses total $6.3 million. Over the nine-month period leading up to 31 March 2021, a cumulative net loss of $21.5 million was recorded.
Increase Driven By Acquisition
Despite an expansion of losses, Esports Entertainment Group did experience a rise in revenues. The company has cited its acquisition of Lucky Dino Gaming as the driving force behind this. Similarly, the group launched SportNation.com and Vie.bet under its license issued by the Malta Gaming Authority. These launches also played a significant role in increasing revenue both with sports betting Canada customers, and beyond.
In total, the group’s operating expenses amounted to $11 million for the period concerned. This was made up of $6.3 million in administrative costs, $2.4 million in sales and marketing costs and a further cost of revenue of $2.3 million. This marks a rise of $551,058 in total expenses.
The group has announced that it will remain committed to its previously communicated full fiscal year of 2021, with a revenue guidance of $18 million.