VANCOUVER, BC--(Marketwired - July 29, 2016) -
NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
Contagious Gaming Inc. (TSX VENTURE: CNS) (FRANKFURT: RHRC)
("Contagious Gaming" or the "Company") is pleased to announce the financial results for the
three months and fiscal year ended March 31, 2016 (the "2016 Financial Results") are available on SEDAR. A
summary of select highlights from the 2016 Financial Results include:
- a 98% year-over-year revenue growth to $2,311,352 from $1,164,955;
- a 78% quarter-over-quarter revenue growth to $1,207,406 from $678,704;
- an Adjusted EBITDA loss of ($279,795) from ($272,563) in the previous quarter; and,
- an Adjusted Earnings Loss of ($669,843) from ($696,301) in the previous quarter.
"We are pleased to announce the Company's 2016 Financial Results which show substantial revenue growth over our previous
fiscal year, as well as a significant overall improvement as compared to our last quarter's results. We are seeing continued
positive developments since the closing of the Digitote acquisition late in Q3. We now look forward to executing on our growth
plans for fiscal 2017, and anticipated improvements of our financial metrics with Digitote being a key component," commented
Peter Glancy, CEO and Director.
The Company's audited financial statements, notes to the financial statements and Management Discussion and Analysis
("MD&A") for the three and fiscal year ended March 31, 2016 are available at www.sedar.com.
Non-IFRS Measures:
The following non-IFRS definitions are used in this news release because management believes that they provide useful
information regarding our ongoing operations. Readers are cautioned that the definitions are not recognized measures under IFRS,
do not have standardized meanings prescribed by IFRS, and should not be construed to be alternatives to revenues and net loss and
comprehensive loss for the period determined in accordance with IFRS or as indicators of performance, liquidity or cash flows.
Our method of calculating these measures may differ from the method used by other entities and accordingly our measures may not
be comparable to similarly titled measures used by other entities or in other jurisdictions.
- Adjusted EBITDA as by the Company means earnings before interest and financing costs (net of interest income), income
taxes, amortization, depreciation, RTO public listing, stock based compensation, stock based marketing compensation,
transaction costs, impairment loss, bargain purchase gain, movement in contingent consideration and irrecoverable taxes.
Management believes that Adjusted EBITDA is a useful measure because it provides information to management about the operating
and financial performance of the Company and its ability to generate operating cash flow to fund future working capital needs,
service outstanding debt and fund future capital expenditures.
- Adjusted Earnings (Loss), as defined by the Company, means net income (loss) plus or minus items of note that management
may reasonably quantify and that it believes will provide the reader with a better understanding of the Company's underlying
business performance. For the purposes of the Company's current year and quarter MD&A, Adjusted Earnings (Loss) is
calculated by adjusting net income (loss) for (i) financing costs related to extinguished debt, (ii) stock based compensation,
(iii) stock based marketing compensation, (iv) RTO public listing, (v) transaction costs and (vi) acquisition related costs.
Management believes that Adjusted Earnings (Loss) is an important indicator of the issuer's ability to generate liquidity
through operating cash flow to fund future working capital needs, service outstanding debt and fund future capital expenditures
and uses the metric for this purpose. Adjusted Earnings (Loss) is also used by investors and analysts for the purpose of
valuing an issuer.
The intent of Adjusted EBITDA, Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per Share is to provide additional useful
information to investors and analysts and these measures do not have any standardized meaning under IFRS. Adjusted EBITDA,
Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per Share should therefore not be considered in isolation or used as a
substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Adjusted EBITDA, Adjusted
Earnings (Loss) and Adjusted Earnings (Loss) per Share differently.
A reconciliation of the adjusted measures noted above to results of operations under IRFS is included in the "Discussion of
Operations" section of the Company's MD&A.
About Contagious Gaming
Contagious Gaming Inc. (TSX VENTURE: CNS) (FRANKFURT: RHRC) is a
trusted software developer focused on providing dynamic gaming solutions regulated gaming operators and lotteries around the
world. Contagious Gaming offers sports betting, pool betting and iGaming solutions targeted at the online retail and mobile
gaming markets. Our unique offering of content and technology can be delivered as a fully integrated service across a single,
modern customer platform or can be offered as standalone verticals.
For more information on Contagious Gaming please visit www.contagiousgaming.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this news release is considered forward-looking within the meaning of certain securities laws and is
subject to important risks, uncertainties and assumptions. This forward‐looking information includes, among other things,
information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may",
"could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and
similar words and expressions are used to identify forward‐looking information. The forward-looking information in this news
release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results
or events. Material factors which could cause actual results or events to differ materially from such forward-looking information
include, among others, risks arising from general economic conditions and adverse industry events.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's
forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other
uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed
that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ
materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there
can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF
THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON
FORWARD‐LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT
DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.