Esports Entertainment Company has seen its quarter-over-quarter revenue rise by 86% to $16.4m. The period ending September 30, 2021 marked the conclusion of the first quarter of fiscal year 2022.
In addition to the 86% net revenue increase, the following figures stand out from the report: gross profit of $10m, up from $10.2m a year ago and a 92% from 4Q21; gross margin stood at 61%, two percentage points higher than the last quarter; adjusted EBITDA if $5.5m from the previous quarter; finally, as of the conclusion of Q122, total cash and cash equivalents stands at $0.9m.
From the quarterly highlights noted by the report, Esports has had a busy and active year. It acquired BetHard, the B2C arm of Gameday Group. It has submitted a transactional waiver to the New Jersey Division of Gaming which, upon being officially approved, would grant Esports the right to operate in the state.
The number of sports teams that Esports partners with grew after agreements were signed with the Tampa Bay Buccaneers, the Los Angeles Chargers, and the Indianapolis Colts. Esports also partnered with the Hall of Fame Resort and Entertainment Company to become the official esports provider for the Hall of Fame Village.
Management struck an upbeat tone upon announcing the results. According to group CEO Grant Johnson: “Our first quarter revenue nearly matched our performance for the entirety of FY21 and reflects our recent platform building transactions.
“With the strong start to FY22 and continued momentum in our business, we are reiterating our expectation that Esports Entertainment will eclipse more than $100m in revenue this fiscal year.”
Its outlook for fiscal year 2022 remained bullish: revenue growth of 490%, which would tip the figure past the $100m mark.