Esports Entertainment Group Inc (NASDAQ:GMBL) reported second-quarter revenue for 2021 of $2.4 million, marking its initial quarter of revenue generation, which the company attributed primarily to the acquisition of Argyll Entertainment.
Esports Entertainment also raised its fiscal 2021 revenue guidance to $18 million, up from $13 million, reflecting the addition of Lucky Dino, Helix Esports and ggCircuit to its core Argyll and VIE platforms.
On a proforma basis, including the acquisitions of Helix Esports and ggCircuit, the company also expects to report $70 million in revenue in fiscal 2022.
“The foundation we have built is primed to generate rapid growth in the quarters ahead. Revenue growth, driven by our Argyll Entertainment acquisition, accelerated throughout the fiscal second quarter,” Esports Entertainment CEO Grant Johnson said in a statement.
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He added: “Additional key milestone achievements subsequent to quarter end, including completing our acquisition of EGL and greatly expanding the eligible operating jurisdictions for our VIE and SportNation brands, provide further growth opportunities.”
Johnson continued: “The COVID-19 pandemic has absolutely accelerated the rapid growth of esports with mainstream broadcasts to national TV audiences on ESPN and Fox, as well as growing interest from traditional professional sports franchises, including top NFL, NHL, and MLS teams.
“We believe the diversified esports and online gambling company we are building is ideally positioned to capitalize on these trends, providing investors broad exposure to the rise of competitive gaming and the legalization of online gambling in the US. Looking ahead, we are building on our momentum, and with today's capital raise of $30 million, we have the resources to further accelerate the monetization of our robust three pillar strategy,” he concluded.
Esports Entertainment also highlighted other notable business developments during the quarter, including:
- Signing a binding agreement to acquire Helix eSports and ggCircuit in deal valued at $43 million
- VIE.bet and SportNation.com brands being approved to market and operate their services in more than 150 jurisdictions globally through the Company's Malta gaming license secured in April 2020
- Filing its first US gaming license application with the New Jersey Division of Gaming Enforcement, with approval expected during 2Q 2021
- Acquiring Esports Gaming League, with a history of partnerships that include Microsoft, Red Bull Arsenal FC, and Activision; subsequent to acquisition, EGL announced first-of-their kind deals with Baltimore Ravens, Philadelphia Eagles, Philadelphia Union, LA Kings, and LA Galaxy to be official esports tournament provider
- Opening access to new markets with acquisition of Lucky Dino, an established Malta-licensed online casino operator with its own proprietary casino platform; Lucky Dino generated $21 million revenue and $3.8 million EBITDA in FY2020.
The company also noted that it had cash and equivalents totaling $7.6 million as of December 31, 2020.
Esports Entertainment recorded a total net loss for the quarter of $7.3 million, as operating expenses for the period increased to $8.1 million due to an expanding payroll, stock compensation, marketing, legal and professional services fees related to increased business activity.
Contact Sean at sean@proactiveinvestors.com