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Esports Entertainment Group has released its financial results for the first quarter of its fiscal year 2022, covering the three month period ended 30 September.

The business recorded net revenue of $16.4m during the quarter, up from just $222,392 in the same period last year. This quarter’s revenue figure also represents a growth of 86.4% quarter-over-quarter, after the business generated $8.8m in the final quarter of its fiscal year 2021.

Operating expenses for the quarter totalled $25.0m, consisting of $11.2m in general and administrative expenses, $7.4m for sales and marketing, and a cost of revenue of $6.5m.

Expenses overall were several times higher than in the same period last year, when operating costs came in at just $4.1m.

These costs left the business with an operating loss this quarter of $8.6m, compared to a $3.9m operating loss in the same period last year.

After gaining $11.8m in the change in fair value of warrant liability, the business paid interest expenses of $2.3m and made a further non-operating loss of $1.4m, leaving it with a net loss for the quarter of $552,381.

This is significantly lower than the $1.8m net loss recorded in the same quarter last year.

Operational highlights during the quarter included Esports Entertainment Group’s acquisition of operator Bethard, the B2C segment of Gameday Group. This acquisition brought the business gaming licences in Sweden and Spain.

The company also submitted a transactional waiver to the New Jersey Division of Gaming Enforcement, which pending final approval would allow it to begin in-state betting operations.

“Our first quarter revenue nearly matched our performance for the entirety of FY21 and reflects our recent platform building transactions,” said Grant Johnson, CEO of Esports Entertainment Group.  

“With the strong start to FY22 and continued momentum in our business, we are reiterating our expectation that Esports Entertainment will eclipse more than $100 million in revenue this fiscal year.”

“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.” 

“We remain ideally positioned in iGaming and esports, two of the fastest growing entertainment verticals, and our team is focused on executing our rapid expansion strategy, which we expect will further strengthen our market position and allow us to scale and achieve operating leverage from our portfolio of unique and powerful assets,” Johnson concluded.

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