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These TSX Esports Stocks Delivered Better than Expected Financial Results

Stockhouse Editorial
2 Comments| February 11, 2022

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Investing in the gaming sphere appears to be paying off for those who know which stocks perform above the rest.

This week, two top-tier gaming companies on the Toronto Stock Exchange delivered stronger than expected financial results, highlighting their economic growth.
Click to enlarge
First up is Bragg Gaming Group (TSX: BRAG, Forum), who announced that it remains on track to grow 2022’s year-end total addressable market by approximately six-fold since the beginning of 2021.

Based on the success of its ongoing iGaming content and platform expansion, BRAG expects Q4 2021 revenue of approximately $22.3 million (CAD) and adjusted EBITDA of approximately $1.9 million (CAD). The company expects full year 2021 revenue of approximately $83.8 million (CAD) and adjusted EBITDA of approximately $10.1 million (CAD).

Now it is raising its full year 2022 revenue outlook to range of $98.9 million to $104 million (CAD, $78-82 million USD) and adjusted EBITDA outlook to range between $13.7 million to $15.2 million (CAD, $10.8-12.0 million USD).

Bragg’s main portfolio asset is ORYX Gaming, an innovative business-to-business gaming technology platform and casino content aggregator.

Bragg expects to complete the acquisition of Spin Games, a casino-themed gaming company, by the end of Q1 2022.

Since January 2021, Bragg’s Gaming has gone live with its player-popular content in the following regulated iGaming markets: Switzerland, Germany, Greece, the Netherlands, the United Kingdom, and the Czech Republic.

Bragg’s Chief Strategy Officer, Yaniv Spielberg commented on these numbers, saying that the ongoing execution of the company’s iGaming content and platform expansion and new market initiatives are driving Bragg’s consistent operating momentum leading to near- and long-term financial growth.

“Looking forward, our deep bench of experienced senior management and operational teams continue to implement strategies that are leading to new areas of growth, as demonstrated by the strong initial performance we are achieving in our recently entered iGaming markets.”

Meanwhile, Enthusiast Gaming Holdings Inc. (TSX: EGLX, Forum) continues to build its media platform for video games and esports fans to connect and engage worldwide. EGLX reported a 34% increase in its preliminary unaudited results for Q4 2021 versus the same quarter from a year earlier at $56.9 million (CAD).

Quarterly financial highlights:

  • Expected annual revenue of $167.4 million (CAD), up from $72.8 million (CAD) in 2020
  • Expected gross profit of $13.7 million (CAD), up 69% from Q4 2020
  • Expected annual gross profit of $37.8 million (CAD), up from $18.7 million in 2020
  • Estimated gross margin of 24.1%, a 5% increase from Q4 2020
  • Estimated direct sales of $8.8 million (CAD), up 167% from Q4 2020. 2021 direct sales of $22.2 million (CAD), up from $5 million (CAD) in 2020
  • Estimated paid subscribers at quarter end of 220,000, up 80% from the end of 2020
  • Estimated end-of-year cash balance of $22.7 million (CAD), up from $4.3 million at the end of 2020


Quarterly operational highlights:

  • Acquired League of Legends community, U.GG
  • Renewed or expanded business with Proctor & Gamble, HBO Max, TikTok, Disney and Square Enix
  • Set a record for US unique visitor traffic in December 2021
  • Expanded in-game purchasing opportunities and subscription offerings for multiple Addicting Games titles



(Image via Enthusiast Gaming Holdings Inc. Click to enlarge.)

Building the largest media and content platform for video game and esports fans to connect and engage worldwide, Enthusiast’s Chief Executive Officer, Adrian Montgomery expects to have generated record quarterly revenues in Q4 2021, led by our continued strength in direct sales, the acquisition and integration of assets such as Addicting Games and U.GG, the ability to attract and retain paying subscribers and ultimately the flywheel of communities, creators, content, and experiences.

The company intends to release audited financial results on March 24th, 2022.



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