Esports Entertainment Group reports 86% quarter-on-quarter surge in revenue
Net losses narrowed by the acquisition of Bethard as esports-centric operator projects net revenue growth of at least 490% in FY2022
Esports Entertainment Group (EEG) has posted revenue of $16.4 million (£12.2 million) for its fiscal Q1 2022 period ended 30 September, which was a 86% jump over the previous quarter. The esports betting specialist also reported gross profit of $10.0m, up $10.2m (£7.58m) compared to Q1 2021 and a 92% increase compared to $5.2m (£3.86m) in Q4 2021. Meanwhile, EEG was able to reduce net losses helped by the €16m acquisition in May of Swedish sports betting and gaming operator Bethard with pre-tax loss standing at $552,381, which an improvement on $1.8m of losses in the same period the year prior. Discussing the results, Grant Johnson, CEO of EEG, said: “Our first-quarter revenue nearly matched our performance for the entirety of FY21 and reflects our recent platform building transactions.” The operator further stated key benchmarks for the company in the first quarter including its acquisition of BetHard, the B2C business of Gameday Group, gaining gaming licenses in Sweden and Spain. Meanwhile, the company also submitted a transactional waiver to the New Jersey Division of Gaming enforcement, which, pending final approval, would allow the operator to begin betting operations in that state. The operator also signed several partnerships deals in the first quarter with sports teams like Indianapolis Colts, Tampa Bay Buccaneers and Los Angeles Chargers. It also partnered with Hall of Fame Resort and Entertainment Company to become the official esports provider for the Hall of Fame Village. Johnson added: “The powerful combination of marquee partnerships, expansive portfolio of products and services and strategic acquisitions is expected to drive double digit year-over-year and quarterly sequential financial growth throughout fiscal 2022.” Meanwhile, the company projects net revenue growth of at least 490% to $100m in FY2022, driven primarily by the platform-building and strategic diversification acquisitions completed in calendar 2021. “With the strong start to FY22 and continued momentum in our business, we are reiterating our expectation that Esports Entertainment will eclipse more than $100m in revenue this fiscal year,” Johnson said. EEG shares were down almost 7% on the Nasdaq to $6.02 at the time of writing.