Yahoo Finance React Gaming reports 2022 second quarter results
Q2 revenue increased to $845,543 from $39,902 in Q2 2021
Q2 represents first fully-integrated quarter of operations since the acquisition of LOOT.BET on February 18, 2022
Recent corporate and operational highlights:
Leigh Hughes appointed as CEO
LOOT.BET launches Isle of Man-licensed online esports betting platform
LOOT.BET obtains GLI-19 certification
LOOT.BET signs partnership agreement with Oddin.gg
LOOT.BET signs white label agreement with HHRP for the Philippines
Compete.gg granted access to Riot Games API
Parabellum Esports secures first paid sponsorship with Shakepay
React Gaming upgraded to the OTCQB
MONTREAL, Aug. 25, 2022 (GLOBE NEWSWIRE) -- React Gaming Group Inc. (“React Gaming” or the “Corporation”) (TSXV: RGG, OTCQB: ITMZF) is pleased to announce its results for the second quarter ended June 30, 2022. All amounts are in Canadian dollars unless otherwise indicated.
(In Canadian dollars) | Three months ended | Six months ended | ||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 | |
Revenue | 845,543 |
| 39,902 |
| 1,179,504 |
| 63,007 |
|
Gross profit | 322,922 |
| 39,902 |
| 614,187 |
| 63,007 |
|
EBITDA1 | (2,535,197) |
| (699,393) |
| (4,623,372) |
| (998,156) |
|
Net loss | (1,532,382) |
| (712,167) |
| (4,909,351) |
| (1,042,256) |
|
Loss per share — basic and diluted | (0.009) |
| (0.006) |
| (0.031) |
| (0.010) |
|
“This has been a quarter of great achievements for React Gaming, as we increased LOOT.BET’s revenue in absolute value by 25% over Q1 even before launching our IOM site and obtaining GLI-19 certification, while making steady gains with Compete.gg and Parabellum,” said Leigh Hughes, CEO of React Gaming.
“The initiatives we set in motion in Q2 will enable LOOT.BET to gain market share in the B2C and B2B space with its IOM site launch and GLI-19 certification. In addition, the partnership with Oddin.gg will enhance our online betting platform capabilities and help LOOT.BET to scale its operations worldwide.”
“Our main goal for the short term is to grow our business, manage our operations so that they become profitable and successfully conclude white-label B2B agreements as we enter new markets. We believe that we have all the elements to bring LOOT.BET to the next level and monetize our other assets,” Mr. Hughes added.
OPERATING RESULTS
For the second quarter of 2022, revenue increased to $845,543 from $39,902 for the same quarter a year ago. The increase was mainly driven by Livestream and its operating entity LOOT.BET. Revenue for the first six months of the year rose to $1,179,504 from $63,007 for the same period a year ago.
Gross profit for the second quarter totalled $322,922 (38.2% of total revenue) compared to $39,020 in 2021. Gross profit for the first six months of the year increased to $614,187 (52.1% of total revenue) from $63,007 for the same period a year ago.
The operating loss for the second quarter totalled $(2,729,558) compared to $(695,668) in 2021. The increase was mainly due to LOOT.BET’s operating costs and professional fees related to Livestream’s ongoing operations. For the six-month period, operating loss stood at $(6,195,107) versus $(1,016,477).
The EBITDA1 loss increased to $(2,535,197) for the second quarter of 2022 from $(699,393) a year ago, mainly due to the increase in net loss and the gain on revaluation of the performance contingency. For the six-month period, the EBITDA loss stood at $(4,623,372) versus $(998,156) a year ago.
For the second quarter ended June 30, 2022, the Company recorded a net loss of $(1,532,382) or $(0.009) per basic and diluted share, compared to $(712,167) or $(0.006) per basic and diluted share for the corresponding period of 2021. For the six-month period, the net loss was $(4,909,351) or $(0.031) per basic and diluted share, compared to $(1,042,256) or $(0.010) per basic and diluted share a year ago.
As at June 30, 2022, the Corporation had cash and cash equivalents of $1,536,871.
(1) |
| The term EBITDA (earnings before interest, taxes, depreciation, and amortization) does not have a standardized meaning prescribed by IFRS. Therefore, EBITDA may not be comparable to similar measures presented in other financial statements of other companies. The Company defines EBITDA as income from continuing operations before amortization of tangible and intangible assets, provision for impairment of goodwill and other intangible assets, interest, gains or losses on disposal of assets, gains on debt settlement, gains or losses on foreign exchange and income taxes. |
Reconciliation of net loss to EBITDA
(In Canadian dollars) | Three months ended | Six months ended | ||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 | |
Net loss | (1,532,382) |
| (712,167) |
| (4,909,351) |
| (1,042,256) |
|
Interest expense | 3,290 |
| 12,959 |
| 13,322 |
| 22,779 |
|
Depreciation of assets and other intangible assets | 326,227 |
| (185) |
| 486,964 |
| 21,321 |
|
Loss on assets written off | 5,300 |
| - |
| 32,165 |
| - |
|
Stock-based compensation expense | (21,842) |
| - |
| 1,069,318 |
| - |
|
Gain on revaluation of performance contingency | (1,315,790) |
| - |
| (1,315,790) |
| - |
|
EBITDA | (2,535,197) |
| (699,393) |
| (4,623,372) |
| (998,156) |
|
About React Gaming Group
React Gaming Group (formerly known as Intema Solutions Inc.) (TSXV: RGG) is a publicly traded holding company that stands at the forefront of the esports and iGaming industry. By investing in innovative technologies that enhance tournaments, teams and wagering, we provide our users with gaming platforms that produce non-stop action, exciting outcomes and unparalleled enjoyment. Through the use of intelligent data, we also connect our sponsors to robust communities within the rapidly evolving industry, ensuring maximum engagement and substantial reward. For more information, please visit us at reactgaming.ca and follow us on LinkedIn, Twitter, Instagram and YouTube.
Forward-Looking Statements
This news release may contain “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. The Corporation's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of the Corporation's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Corporation’s activities, including: that the Corporation's assumptions in making forward-looking statements may prove to be incorrect; general adverse market conditions and competition; the inability to finance operations and/or obtain any future strategic investment necessary to implement new technologies; the inability to build a sustainable, conscientious company with a stronger presence online through new products in esports and gaming; the inability to obtain, or maintain, gaming license(s); and that market conditions related to the COVID-19 pandemic may negatively affect the outcome of the business or operations of the Corporation, including its results and financial condition. Except as required by securities law, the Corporation does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
REACT GAMING GROUP INC.
Leigh Hughes
1-514-861-1881
info@reactgaming.ca
