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Oct. 13, 2021, 4:07 p.m. EDT

Esports Entertainment Group Reports Fourth Quarter and Fiscal Year 2021 Results

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Newark, New Jersey, Oct 13, 2021 (Newsfile Corp via COMTEX) -- Q4 revenue up 63% over Q3 to $8.8 million

$16.8 million revenue generated for fiscal year 2021

Stockholders’ equity increased to $74.8M, up $63.4M over FY20

Company reaffirms FY22 revenue guidance of $100M to $105M

Newark, New Jersey--(Newsfile Corp. - October 13, 2021) - Esports Entertainment Group, Inc. /zigman2/quotes/208107430/composite GMBL +1.89% /zigman2/quotes/217805726/composite GMBLW -4.88% (or the "Company") today announced financial results for its fourth quarter and fiscal year ended June 30, 2021.

Fiscal Fourth Quarter 2021 and Recent Operational Highlights

  • Completed acquisitions of Helix eSports and ggCircuit

  • Completed acquisition of BetHard, the B2C business of Gameday Group, adding Swedish and Spanish gaming licenses and substantially increasing revenue base

  • New Jersey gaming license formally accepted by NJ Division of Gaming Enforcement in May 2021

  • Opened New Jersey office and expanded hiring ahead of VIE US launch

  • Completed $35 million private placement of convertible notes with $17.50 conversion price

  • Partnered with Square, the world-leading point of sale and payment processing provider, to create ggLeap, a premium esports center management software

  • Partnered with Game Fund Partners to become a part of their venture capital arm and a new planned $300 million game fund

  • Continued to expand partnerships with professional sports teams, becoming official tournament sponsor for the Cleveland Cavaliers, New York Rangers, Indianapolis Colts, Tampa Bay Buccaneers, LA Chargers, and LAFC

  • Partnered with Pro Football Retired Players Association, a national membership organization that develops benefits and programs for retired NFL players, to be its official esports partner and tournament provider

  • Partnered with Hall of Fame Resort and Entertainment Company to become the official esports provider for the Hall of Fame Village powered by Johnson Controls, joining Topgolf Swing Suites and Don Shula's among others

  • Signed agreement with Associated Students of UCLA to launch state-of-the-art Helix eSports gaming facility inside Ackerman Union, located in the heart of UCLA's campus

  • Launched crypto mining application at ggCircuit LAN centers

  • Launched "pay-and-play" casino brand targeting the Finnish gaming market

  • Partnered with Indian Gaming Esports Association and Spectrum Gaming to bring esports to tribal nations and casinos

  • Partnered with Liquipedia.net to create the most community-centric and responsible betting integration in esports

  • Launched InVIE esports tournament series with Dota 2 Season 1 in South America

  • Became official gambling sponsor of Beyond the Summit's May 2021 CS:GO tournament; Beyond the Summit is one of the world's largest esports networks

  • Signed binding letter of intent to acquire Holodeck Ventures' esports content and media business

  • Partnered with Riot Games to host the Summer 2021 North American LCS Proving Grounds tournament

  • The Company's Helix eSports subsidiary partnered with GUNNAR Optiks, the leader in blue-light gaming and computer glasses

  • Signed agreement to co-produce the 24 [th] Annual East Coast Gaming Congress in Atlantic City

  • Signed exclusive content partnership with ESTV EsportsTV, the world's first 24-7 live linear video channel dedicated to esports

  • Partnered with SG Esports, a Brazilian professional gaming organization, as their primary jersey sponsor

  • Partnered with Real Cricket 20, the world's top mobile cricket game, to provide software integration services for the dafaNEWS Ecricket World Series

  • The Company's SportNation brand nominated for eGaming's Marketing Campaign of the Year Award

  • Partnered with Alpha Esports Tech to design computer vision technology for automated scoring

Fiscal Fourth Quarter 2021 Financial Results

  • Net revenue of $8.8 million, up $8.8 million over 4Q20 and up 63% compared to 3Q21's $5.4 million

  • Gross profit of $5.2 million, up $5.2 million over 4Q20 and up 69% compared to 3Q21's $3.1 million

  • Gross margin as a percentage of net sales was 59%, compared to 57% in 3Q21

  • Sales and marketing expenses of $5.1 million, up from $0.3 million in 4Q20 and compared to $2.4 million in 3Q21

  • General and administrative expenses of $10.5 million, up from $1.8 million in 4Q20 and compared to $6.3 million in 3Q21

  • Operating loss of $10.5 million, up from a loss of $2.1 million in 4Q20 and compared to $5.6 million in 3Q21

  • GAAP Net loss of $4.8 million or ($2.80) per basic common share, up from a net gain of $1.9 million or $2.09 per basic common share in 4Q20 and compared to a net loss of $12.4 million or ($0.73) per share in 3Q21

  • Non-GAAP adjusted EBITDA* of ($5.5 million), compared to adjusted EBITDA of ($0.9 million) in 4Q20 and compared to adjusted EBITDA of $2.1 million in 3Q21

Full Year Fiscal 2021 Financial Results

  • Net revenue of $16.8 million, up $16.8 million over FY20

  • Gross profit of $8.9 million, up $8.9 million over FY20

  • Gross margin as a percentage of net sales was 53%

/zigman2/quotes/208107430/composite
US : U.S.: Nasdaq
$ 3.24
+0.06 +1.89%
Volume: 276,557
Jan. 14, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$72.55 million
Rev. per Employee
N/A
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/zigman2/quotes/217805726/composite
US : U.S.: Nasdaq
$ 1.95
-0.10 -4.88%
Volume: 9,562
Jan. 14, 2022 2:44p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
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