Gamelancer Media Corp. (TSX:GMNG, OTCQB:GAMGF) has reported second-quarter revenue that beat management’s projection as it grew its social network and added more followers.
The media and entertainment company, which produces short-form video content for brands broadcast on its owned and operated TikTok, Snapchat and Instagram channels, also announced plans to open its first office in New York.
For the three months to June 30, 2023, the company increased revenue by 171% to C$1.42 million. That took revenue for the first six months of the year 263% higher as it continued to grow its strategic partnerships, "monetizing Gamelancer's unique approach integrating television ad economics into digital channel ownership.”
In a statement, CEO Jon Dwyer commented: “Through our innovative fusion of gaming and lifestyle video entertainment, diversity and equity are cornerstone features of our creative short-form & long-form content for both our organic and branded content.”
Gamelancer said its social network of 66 digital channels now totals 41 million followers, creating one of the largest active and growing digital audiences in the four most valuable English-speaking markets, including the US, Canada, the UK and Australia. Two-thirds of its audience is in the US.
“Gamelancer is doubling down our sales efforts in the US, with plans to open our first New York City location within the calendar year, in order to better access the thriving US digital-media market,” Dwyer added.
The company said it continues to tackle costs as it targets positive underlying earnings (EBITDA) by the fourth quarter of the year, including reducing the professional fees associated with being a publicly traded company. The costs attributed to becoming a senior issuer via an uplisting to the TSX and share-based compensation impacted 2Q expenses, it added.
“The company persistently evaluates all facets of its operations, striving to achieve optimal efficiency and maintain a lean operational approach,” said Gamelancer chief financial officer Pooja Sharma.
“Q2 2023 will have seen an increase in expenses in specific categories as we closed the private placement in June 2023. We look forward to continuing our efforts in increasing sales and minimizing costs as we enter into the last two quarters of the year.”
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