Esports Entertainment Group Reveals Strategic Moves Amid Q1 Decline
Date: 2023-11-26 Author: Dima Zakharov Categories: EVENTS
Strategic Restructuring for Long-Term Gains
Esports Entertainment Group recently finalized the €9.5m sale of the Bethard online casino and sportsbook business. Despite revenue decline in Q1, CEO Alex Igelman remains optimistic, citing the recent business restructuring aimed at supporting growth and reducing costs. The sale of certain assets contributed to an 81.3% reduction in the cost of revenue.
Diversification with Drafted.gg
EEG acquired a 30% minority interest in esports content producer Drafted.gg, signaling further support for its long-term ambitions. Igelman highlights the company's comprehensive review, identifying unprofitable operations, and expects yearly operating expense reductions exceeding $4.0m.
Q1 Revenue Challenges
In Q1, EEG faced revenue challenges in both core segments. Revenue from igaming dropped 76.7% to €2.0m, while gaming revenue from esports and other activities fell 27.3% to €733,768. Lucky Dino business suffered from market conditions and regulatory changes in Finland and the UK.
Financial Overview
Despite significant cost savings, Q1 net loss widened to $4.8m, compared to $4.2m in 2022. Adjusted EBITDA loss improved from $1.0m to $354,870. Igelman emphasizes a renewed focus on developing initiatives to expand esports and igaming solutions for a comprehensive online betting offering.
Future Prospects
Igelman concludes Q1 with optimism, highlighting partnerships and a robust ecosystem. EEG aims to commission an integrity audit of Drafted.gg to meet regulatory standards, supporting rapid expansion in the US market. The CEO expresses excitement about the future prospects, fueled by strategic investments.
