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Esports Entertainment Group provides fiscal year-end 2023 business update18 October 2023(PRESS RELEASE) -- Esports Entertainment Group, Inc., a leading, global iGaming company and business-to-business esports solutions provider, today provided strategic, financial, and operational updates for the fiscal year end 30 June 2023. “Over recent months, the Company has undertaken a comprehensive examination of our organization, focusing on the anticipated trajectory of the esports and iGaming sectors,” commented Alex Igelman, CEO of Esports Entertainment. “Through this process, we conducted a deep dive into our business from top to bottom and pinpointed operations and contracts that weren’t profitable, leading to decisive actions that have set us up for a promising future. Although the restructuring came with one-time expenses, we are confident that the long-term advantages will significantly outweigh these costs. Moving forward, the Company anticipates a reduction in annual operating expenses of more than $4 million. We have also reduced total liabilities by approximately $51.8 million since January 2023. By focusing resources around core assets, we believe we are establishing a robust foundation for our future. This period of time in the Company’s evolution marks a pivotal shift and new beginning, allowing us to leave behind past barriers and shape a path that maximizes our potential for success, which we believe will drive significant revenue growth and value for our shareholders.” “Our recent focus has turned towards developing initiatives to further broaden the Company’s esports and iGaming offerings in order to create a comprehensive, end-to-end offering of online betting options to our customers.” “Building on our recently announced upcoming sportsbook offering, we also recently announced a key partnership with Oddin.gg, a top-tier esports betting solution provider. We plan to integrate Oddin’s cutting-edge iFrame solution into our Idefix iGaming platform, enabling us to supply betting markets for our customers. This anticipated integration, subject to the approval of the Malta Gaming Authority, is targeted for Q1 2024. Expanding our partnership with Oddin.gg marks a significant step forward for Esports Entertainment as it will allow us to provide odds on traditional esports events, such as seasonal, big-name events, annual esports tournaments, as well as short-cycle wagerable events. What sets Oddin.gg apart is their unique combination of proprietary statistical models, unique algorithms, and deep understanding of game nuances and player inclinations, ensuring an unparalleled user experience. Their platform’s capability to anticipate in-game event outcomes and facilitate live, in-game markets provides users with what we believe will be an unparalleled, iGaming and esports betting experience. The integration of Oddin.gg’s advanced esports wagering solution, combined with the addition of Delasport’s sportsbook, provides Esports Entertainment a comprehensive, B2C esports wagering and iGaming ecosystem.” “At the same time, our wholly owned subsidiary, ggCircuit, entered into a partnership with Ghost Gaming and Skillshot Media to establish a first-of-its-kind Scholastic Esports Innovation Center within the Ghost Gaming HQ lab, dedicated to pioneering research and co-developing cutting-edge technology tailored to the evolving needs of school esports programs.” “Overall, we believe the Company-wide initiatives we have undertaken this year will place us in a stronger financial position, and at the forefront of the rapidly growing esports wagering market which is poised to grow significantly by 2025. Moreover, the addition of Oddin.gg’s iFrame supports the Company’s global expansion strategies, given Oddin’s established international presence. As a result, I could not be more excited by the outlook for our business.” Financial Results – Fiscal 2023 - Revenue totaled $23.0 million for the fiscal year ended 30 June 2023, compared to $58.4 million for the 2022 comparable period - Cost of revenue totaled $8.8 million for the fiscal year ended June 30, 2023, a decrease of $15.4 million, or 64%, from $24.2 million in the 2022 fiscal year - Sales and marketing expense totaled $5.9 million for the fiscal year ended June 30, 2023, a decrease of $19.8 million, or 77%, compared to $25.7 million in the 2022 fiscal year - General and administrative expense totaled $28.9 million for the fiscal year ended June 30, 2023, a decrease of $22.4 million, or 44%, compared to $51.3 million for the 2022 comparable period - Net loss for the fiscal year ended June 30, 2023, was $32.3 million, compared to $102.2 million for the 2022 fiscal year The Company’s complete financial results are available in the Company’s Form 10-K, which has been with the Securities and Exchange Commission and will be available on the Company’s website. |