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or Name
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ESE Entertainment Inc
Symbol ESE
Shares Issued 71,143,860
Close 2022-06-15 C$ 0.83
Market Cap C$ 59,049,404
Recent Sedar Documents

ESE Entertainment loses $2.01-million in Q2 2022

2022-06-16 11:44 ET - News Release

Mr. Konrad Wasiela reports

ESE ENTERTAINMENT REPORTS SECOND QUARTER 2022 RESULTS

ESE Entertainment Inc. has filed its unaudited condensed interim consolidated financial statements and related management's discussion and analysis (MD&A) for the three months ended April 30, 2022, the highlights of which are presented in this news release. The financial statements and MD&A are available on SEDAR and on the company's website.

Second quarter 2022 financial and operating highlights:

  • Revenue of $15-million for Q2 2022, representing a 1,994-per-cent increase from revenue for the three months ended April 30, 2021, of $720,000;
  • Gross profit of $3.82-million for Q2 2022, representing a 2,748-per-cent increase from gross profit in Q2 2021 of $130,000;
  • Adjusted earnings before interest, taxes, depreciation and amortization of $884,751 in Q2 2022, compared with adjusted EBITDA loss of ($832,195) in Q2 2021;
  • Total assets as at April 30, 2022, of $38.06-million, compared with total assets as at April 30, 2021, of $15.94-million.

"We are excited to share our Q2 2022 financial performance with shareholders, which is our seventh straight quarter in a row of record growth. This was the first quarter that included the financial performance of our most recent acquisition, Gameaddik. The combined operations have proven to deliver record revenue growth, improve margins and reach a critical milestone of achieving positive adjusted EBITDA for the first time in company history. This performance is a testament to our entire team, which continues to execute at the highest level and deliver on our business plan and growth strategy. As we start to unlock synergies of the combined operations, we are setting our sights on continued organic growth," stated Konrad Wasiela, chief executive officer of ESE.

Q2 2022 operational highlights:

  • Announced a partnership agreement with Opera, one of the world's major browser developers and a leading Internet consumer brand. The agreement focuses on providing advertising services in connection with the promotion of Opera GX, Opera's gamer-oriented browser;
  • Completed the acquisition of 9327-7358 Quebec Inc., doing business as Gameaddik, adding new technology to ESE's global 360 e-sports business;
  • Appointed the founder and CEO of Gameaddik, Eric Jodoin, as the chief operating officer (COO) of ESE Entertainment;
  • Announced that the company's subsidiary, Digital Motorsports, signed a reseller agreement with Corsair Gaming -- a leading global developer and manufacturer of high-performance gaming gear;
  • Announced that its media division, Frenzy, is launching a new broadcast studio in Warsaw, Poland. The first project produced from the new studio will be VRL East: Surge, a competition in the game Valorant carried out in 20 countries;
  • Announced that it has started a new division of its business focused on expanding its existing business products and services to Internet gambling companies;
  • Signed a partnership agreement with Waveform Entertainment Inc., a highly regarded e-sports entertainment company with clients that include ESL Gaming (recently merged and sold as ESL Faceit Group to Savvy Gaming Group), DreamHack, Ubisoft, Redbull and more;
  • Announced a partnership agreement with Cowana GmbH, a highly regarded European e-sports entertainment company with clients that include Bethesda Softworks, Capcom, NVIDIA, BENQ and more.

The financial and operating results included in this news release are based on the financial statements and the MD&A, which were released on June 16, 2022. It is only in the context of the fulsome information and disclosures contained in the financial statements and MD&A that an investor can properly analyze this information. The financial statements and MD&A will be published under the company's profile on SEDAR.

About ESE Entertainment Inc.

ESE is a Europe-based entertainment and technology company focused on gaming and e-sports. The company provides a range of services to leading video game developers, publishers and brands by providing technology, infrastructure and fan engagement services internationally. ESE also operates its own e-commerce channels, e-sports teams and gaming leagues. In addition to the company's organic growth opportunities, the company is considering selective acquisitions that align with its objective of becoming a dominant global player in e-sports technology and infrastructure.

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