Esports Entertainment Group has reported its Q2 financial results. The company’s latest figures show an increase in productivity from the previous quarter.
The company generated a net revenue of $14.5m, up $12.2m from the first quarter. Gross profit was also up from Q1, yielding $8m during Q2 and a gross margin of 55.2%.
The GAAP net loss to common shareholders was $34.5m, or $1.53 per share, compared to a net loss of $0.6m, or $0.03 per share, during the first quarter.
The company had a non-GAAP adjusted EBITDA loss of $6.8m, compared an adjusted EBITDA of $4.3m last quarter.
Esports reported $1m in total cash and cash equivalents as of December 31.
"Our fiscal second quarter results reflect a variety of challenges largely outside of our control, which together drove our first quarter over quarter revenue decline in more than a year," said Grant Johnson, CEO of Esports Entertainment Group.
Esports received a transactional waiver at the end of January from the New Jersey Division of Gaming Enforcement. The company launched its VIE.gg platform earlier this month, presenting an avenue for players to wager on esports events in the US.
Johnson said the company remains optimistic despite the ongoing impact from the global pandemic and rise of the Omicron variant, which effected Esports’ financial performance during the first quarter.
“Despite these challenges and the collective impact they are having on our business, we remain extremely bullish about the year ahead and in our ability to reach annualized revenue of $100m from our current portfolio of offerings,” he said.
“We are confident in our ability [to] realize the tremendous growth potential of our business while achieving the operating leverage inherent in our portfolio of unique and powerful brands over the near and long-term, as we move deeper into a post-pandemic recovery and fully integrate our tech stack and acquired assets."
The company anticipates a range of 317% to 347% in net revenue growth this year, or $70m to $75m. These figures are based on the company’s growth from acquisitions and platform building during the previous calendar year.
"Looking ahead, I believe our future is exceedingly bright as our newest products and the underlying strength of our European-based iGaming and online sports betting business position us well to benefit from the organic growth potential inherent in our two targeted entertainment verticals, iGaming and esports,” Johnson said.
