ESE Entertainment Inc has reported a surge in third-quarter revenue as its underlying businesses gain momentum. It said the recent acquisition of Digital Motorsports and a large capital raise will help accelerate its expansion.
Europe-based ESE grew revenue to $4.23 million for the three months ended July 31, 2021, from $0.14 million a year earlier. It reported an improvement in its bottom line, to a net loss of $1.26 million from a net loss of $3.81 million in the previous quarter. It ended July with a cash balance of $9.17 million and zero debt.
“After significant growth in the ESE group, launching our acquisition of Digital Motorsports and raising $8.6 million to accelerate expansion, 3Q was a standout quarter for ESE Entertainment,” said CEO Konrad Wasiela.
“In the coming months, we anticipate revenue growth and margin expansion. We expect this growth to be driven by momentum in the existing business, performance of the newly completed Digital Motorsports acquisition, direct sales to our increasing pipeline of clients, and new business from our scalable technology and growing e-commerce platform."
READ: ESE Entertainment says Digital Motorsports division set to unveil new technology, World Cup plans at the ADAC SimRacing Expo in Germany
As well as the Digital Motorsports acquisition and the proceeds raised in the bought deal public offering of its units, ESE said it continued to invest in platform development while making improvements to back-office functions. It also developed new software and technology for gaming and esports.
“Our acquisition pipeline is robust and our team is working tirelessly to find and execute on prospective accretive transactions to maximize shareholder value,” Wasiela concluded.
ESE Entertainment is a Europe-based entertainment and technology company focused on gaming, particularly on esports, with ownership of multiple assets and world-class operators in the gaming and esports industries.
The company’s capabilities include physical infrastructure, broadcasting, global distribution for gaming and esports-related content, advertising, sponsorship support, and a growing esports team franchise, K1CK Esports.
Contact the author at stephen.gunnion@proactiveinvestors.com