Esports entertainment reports initial revenue figures for Q1 for the first time
The group has reported revenue for the first time after acquiring Argyll Entertainment
Esports Entertainment Group reports a $222,392 revenue for the first quarter of its 2021 financial year. Most of this revenue came to $139,619 and hails from white label services from Rush Gaming to operate Fansbet’s British site. The previous white label provider was Viral Interactive, owned by Finnplay, who withdrew from offering white label services in regulated markets.
Argyll’s own flagship brand sportnation.bet provided $67,400 in revenue, and a $23,609 loss was reported from the white label agreement with RedZone Sports.
An additional $38,982 was made from other services.
The revenue was unfortunately overshadowed by the costs of revenue amounting to $420,075 which proceeded to create a $197,683 gross loss.
The operating loss, though, totalled to $3.9 million, up by 456.5%. This resulted from $3.7 million in operating expenses.
The business did, however, gain $2.1 million through fair market changes in its liabilities to be paid. The final loss therefore totalled $1.8 million, a 36.5% decrease from the loss of the previous year.
During the start of the 2020-2021 fiscal year, a series of purchases were made by Esports Entertainment Group, including B2B software business ggCircuit and esports center operator Helix eSports for $43 million. They are also in the process of acquiring British tournament operator Esports Gaming League, as well as assets owned by Flip Sports, the peer-to-peer competitive gaming solutions provider.
ggCircuit is expected to complete the process of building a semi-permanent esports arena in South Bend, Indiana by December 2020.
Grant Johnson, Esports Entertainment Group chief executive, said that the pandemic has caused a rise in popularity for esports and has helped further expand the business.
“We have achieved many significant milestones since uplisting to the Nasdaq in April. The Covid-19 pandemic has absolutely accelerated the rapid growth of esports leading to mainstream broadcasts to national TV audiences on ESPN and Fox.” Said Johnson.
“These trends helped us set new record audience viewing stats with our partner Allied Esports for the globally recognized Legend Series, just one of many accomplishments during the quarter. We believe the successes achieved this year provide an extremely strong foundation for long-term growth while offering investors a true pure play opportunity in the burgeoning world of global esports. We have structured our business to deliver a diversified esports and online gambling company via three key business pillars and believe this multi-tiered approach provides investors broad exposure to two major trends, the rise of competitive gaming and the legalization of online gambling in the US.”