Esports Entertainment Group has shared with the public that it has seen an increase in overall revenue. The company disclosed its financial performance for the fiscal year’s third quarter in a report that was made public. The time allotted for this period is the three months that end on March 31st, 2021. This time period brought in a total of $5.4 million in revenue, a portion of which was generated from operations pertaining to sports betting in Canada.
It was decided not to record any revenue for the three months leading up to the 31st of March 2020 in order to ensure an appropriate comparison from one year to the next. Despite this, the revenue for the third quarter of 2021 showed that it had climbed by 129% from the $2.4 million that was brought in during the three months before to the 31st of December 2020.
The corporation did reveal that it has endured a number of severe setbacks in its business. For the quarter, the company’s adjusted earnings before interest, depreciation, and amortization, often known as EBITDA, amounted to a loss of $2.1 million. As a consequence of this, the company’s adjusted EBITDA for the nine months leading up to the 31st of March was $8.5 million in the red. A negative EBITDA value of $3.8 million was recorded for the three months leading up to the 31st of December in 2020.
Another loss in the amount of $5.4 million was incurred by Esports Entertainment Group as a consequence of the change in the fair value of the warrant liability. In addition to this, there was a loss of $1.3 million that was incurred as a consequence of the decrease in the fair value of the contingent consideration. The sports betting Canada group incurred further losses of $165,464 due to a variety of other factors.
For the period covered by the report, the company incurred a net loss of a total of $12.4 million. When compared to the same time period the previous year, when losses were $6.3 million, this represents a considerable increase in the amount of money lost. A cumulative net loss of $21.5 million was incurred during the course of the preceding nine months, which ended on March 31, 2021.
Increase Caused by Acquiring New Assets
Despite an expansion of losses, Esports Entertainment Group did witness a growth in revenues. The company attributes its development to its recent purchase of Lucky Dino Gaming as the primary motivating factor. In a similar fashion, the company created SportNation.com and Vie.bet using the license that was granted to it by the Malta Gaming Authority. These launches also played a key role in raising revenue, both among customers of sports betting in Canada and beyond those borders.
During the time frame in question, the overall operational costs for the company came to a total of 11 million dollars. This was comprised of administrative expenditures totaling $6.3 million, costs associated with sales and marketing totaling $2.4 million, and an additional cost of revenue amounting to $2.3 million. The sum total of all expenses went up by $551,058 as a result of this.
The organization has made the announcement that it would continue to be dedicated to its previously declared full fiscal year of 2021, which will have a revenue guidance of $18 million.