ENTHUSIAST GAMING REPORTS FIRST QUARTER 2021 FINANCIAL RESULTS
Enthusiast Gaming Holdings Inc. has released financial results for the first quarter ended March 31, 2021.
"Our first quarter results were fueled by our focused acquisition strategy as well as organic growth gains coming from direct sales and premium subscriptions," commented Adrian Montgomery, CEO of Enthusiast Gaming. "We have leveraged this momentum in our growth strategy, announcing earlier today our accelerated plans to launch a gaming social network and premium subscription offering with the acquisition of Tabwire, enabling us to evolve further into a technology-driven media, esports and entertainment company."
First Quarter 2021 Highlights:
Revenue was $30.0 million, a 321% increase vs Q1 2020 revenue of $7.1 million.
Gross profit was $5.9 million, an increase of 80% vs Q1 2020 gross profit of $3.3 million.
Net loss and comprehensive loss was $13.6 million, resulting in a net loss and comprehensive loss per share, basic and diluted, of $0.12.
Direct advertising sales of $2.2 million, compared to $60 thousand in the same period last year.
Paid subscribers grew 49% over the past 12 months to 137,000 paid subscribers as of March 31, 2021.
9.9 billion total views across written and video content.
Strengthened balance sheet by approximately $50 million with the combination of a bought deal financing for gross proceeds of $42.5 million and the reduction of indebtedness through the conversion of outstanding debentures of approximately $9 million.
Announced key partnership deals with Samsung and TikTok.
Was ranked as a Top 100 Internet Properties in the United States by Comscore, one of only two gaming properties to make the list alongside Amazon's TWITCH.TV, and ranked #1 Gaming Information property for unique visitor traffic from mobile devices.
Announced and closed subsequent to Q1, the acquisition of Vedatis SAS, owners of Icy Veins, one of the largest Activision Blizzard fan communities.
"We continue to see the benefits of our investments in key areas that drive long-term revenue and margin growth. For any media company, Q1 is seasonally the lowest quarter, but our results are off to a strong start and point to a promising year ahead. As a result, we will continue to execute our strategy of combining accretive acquisitions with organic growth through our proprietary flywheel."
Significant events subsequent to First Quarter 2021:
Signed an integrated and strategic partnership deal with ESPAT TV, a strong producer of gaming and entertainment content across multiple distribution channels, and including ESPAT TV's Creative Collective, which consists of Ridley Scott Creative Group, Petrol, PRG, and Movers & Shakers, has produced work across the globe partnering with publishers, brands, live events, and advertising agencies alike.
Luminosity Gaming, the Company's esports organization, was ranked by Streams Charts as the most popular esports community on Twitch in March 2021, with 40 million hours watched, outpacing the runner up by more than 15 million hours.
Filed a Registration Statement on Form 40-F with the United States Securities and Exchange Commission ("SEC") becoming a reporting issuer in the United States.
Announced that the Company's common shares were approved for listing on the Nasdaq Global Select Market ("Nasdaq") under the trading ticker symbol "EGLX" and commenced trading on April 21, 2021.
Appointed NFL superstar, Silicon Valley advisor and community leader, Richard Sherman to its Board of Directors.
Announced a partnership deal with ExitLag, a Latin American software developer with proprietary technology to improve routing connections for gamers.
Filed a short form base shelf prospectus in Canada and the US up to an aggregate total of $250 million.
Announced plans to create a subscription-based gaming social network, Project GG, facilitated by entering into a definitive agreement to acquire Tabwire LLC, a technology and data platform that gives gamers the ability to login directly to view their game data in real time with 13 billion gamer profiles, for US$11 million in cash and stock.
Certain information provided in this news release is extracted from the unaudited condensed consolidated interim financial statements (the "Financial Statements") and Management's Discussion & Analysis ("MD&A") of the Company for the three months ended March 31, 2021 and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company's profile on SEDAR and EDGAR.