ESE Entertainment Inc. (TSX-V:ESE) has said its unaudited revenue in the fourth quarter of its fiscal year 2021 jumped nearly 3,018% year-over-year led by organic growth in its existing assets and ability to attract and retain clients.
The Europe-focused entertainment and technology company reported annual consolidated revenue in fiscal 2021 of CA$11.38 million, an increase of 2,818% from CA$0.39 million in FY 2020 for the 12 months ended October 31, 2020.
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For its unaudited fiscal 4Q ended October 31, 2021, the company which delivers gaming and esports technology reported revenue of CA$6.24 million, compared to unaudited CA$0.20 million in the fiscal 4Q ended October 31, 2020.
It also marked an annual gross profit of CA$1.15 million, up 195% from an annual gross profit of CA$0.39 million in fiscal 2020.
The company reported an adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization loss of CA$3.50 million in fiscal 2021.
The company’s total assets on October 31, 2021, stood at CA$15.94 million, representing a 1,793% increase from total assets of CA$0.84 on October 31, 2020.
ESE Entertainment had a strong cash balance of $4.83 million on October 31, 2021, compared to $0.55 million on October 31, 2020.
“We are proud to publish a record year, with quadruple-digit revenue growth and financial performance that highlights the growth our company is experiencing. We are entering 2022 with momentum,” ESE Entertainment CEO Konrad Wasiela said in a statement.
“ESE generated record quarterly revenues in the fourth quarter of 2021, led by organic growth in existing assets, our ability to acquire and integrate assets, our ability to attract and retain clients for expanded contracts, and ultimately our ability to deliver 360 esports and gaming technology and services for gaming publishers and developers. With the subsequent events of acquiring Frenzy and GameAddik, we anticipate strong continued quarterly growth,” he added.
On November 12, 2021, ESE completed the acquisition of all the issued and outstanding shares of Frenzy, a European esports media and technology company.
Similarly, on February 14, 2022, Vancouver-based ESE completed the acquisition of GameAddik, a Canadian technology company focused on gaming and esports.
“Q4 2021 revenue growth was strong at 3018% year-over-year, but it is important to note these figures do not include the recently completed acquisitions of Frenzy and GameAddik. We anticipate continued growth from organic business plus these new key assets,” said ESE CFO Rob Kang. “Increased revenues and higher gross margins are key to reaching our goals, and we believe our investments in operations will drive performance in the quarters ahead.”
ESE Entertainment also operates its own ecommerce channels, esports teams, and gaming leagues.
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