East Side Games Group (TSX:EAGR, OTCQB:EAGRF) announced its financial results for the third quarter, reporting a surge in revenue driven by game releases over the past year.
The company reported revenue of C$25 million for the three months ended September 30, an increase of 32% year-over-year. Daily active users were 298,000, compared to 244,000 in the third quarter of 2021, and monthly active users were 1 million, compared to 871,000 a year earlier.
Revenue per daily active user improved to C$0.94 from C$0.85 a year earlier, while the company’s net loss was $3.5 million, compared to $1.4 million.
READ: East Side Games launches Star Trek: Lower Decks mobile game in partnership with Paramount Consumer Products
Three of ESGG's top five games launched in the past 12 months: RuPaul's Drag Race Superstar, The Office: Somehow We Manage, and Star Trek: Lower Decks - The Badgey Directive.
Those titles were a perfect match for the company’s GameKit, a proprietary software framework that lets developers build faster, cheaper and with a higher chance of success, the company said.
“The launch of Star Trek, in the last few days of Q3, has us well positioned for Q4 and the end of FY2022,” ESGG said in a statement. “Doctor Who: Lost in Time will be our next major IP-based title, currently in soft launch and slated for worldwide launch. We have also soft launched titles in three new genres, Trailer Park Boys Merge, Bud Farm Munchie Match and Milk Farm Tycoon, all of which are showing solid engagement metrics.”
That would bring the company’s total games launched in 2022 to 11 titles, one more than its previously announced goal of 10 titles.
"We anticipate being EBITDA positive for the year while maintaining year over year growth,” CEO Jason Bailey said. “We remain focused on our goal of providing creators the tools to successfully deliver mobile gaming experiences that engage players every day.”
Going forward, the company plans to maintain its focus on IP-driven games, calling it a “solid model in a post ad-tracking transparency world.” The company has signed deals for new IPs and games for 2023 with NBCUniversal, Creative Artists Agency, Jazwares, All Elite Wrestling, Diggital Dogg and others.
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