05:11:06 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



ESE Entertainment Inc
Symbol ESE
Shares Issued 79,593,768
Close 2023-03-31 C$ 0.29
Market Cap C$ 23,082,193
Recent Sedar Documents

ESE Entertainment loses $2.07-million in Q1

2023-03-31 19:08 ET - News Release

Mr. Konrad Wasiela reports

ESE ENTERTAINMENT REPORTS FIRST QUARTER 2023 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 Jan. 31, 2023 (Q1 2023), the highlights of which are presented in this news release. The financial statements and MD&A (management's discussion and analysis) are available on SEDAR and on the company's website.

Q1 2023 financial highlights:

  • Revenue of $13.92-million for Q1 2023, representing a 73-per-cent increase from Q1 2022 revenue of $8.03-million;
  • Gross profit of $2.45-million for Q1 2023, representing a 283-per-cent increase from Q1 2022 gross profit of $640,000;
  • Positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $9,480 for the three months ended Jan. 31, 2023, compared with adjusted EBITDA loss of $795,338 for the three months ended Jan. 31, 2022;
  • Total assets as at Jan. 31, 2023, of $18.87-million, achieving a positive current ratio (2).

"At ESE, we are dynamic and adapt to market conditions and listen to shareholder feedback, which is why we are committed to focusing on achieving profitability and high gross margins as we celebrate new milestones in our year-over-year growth. We believe that the market has not adequately valued the company, so we have taken actionable steps to unlock value. Firstly, we have executed an LOI for the sale of Frenzy and Digital Motorsports for consideration valued at $41-million. Secondly, we are focusing more on our core intellectual property and technology offering, GameAddik. This quarter has been a period of implementation for our 2023 success plan, which will allow us to establish long-term sustainability and pursuit of profitability," stated Konrad Wasiela, chief executive officer of ESE.

"We are confident that our strategic investments and commitment to our shareholders' priorities will result in increased profitability and higher gross profits in the coming quarters, showcasing the true potential of ESE. Our financial position has shown strong improvement, underpinned by a positive current ratio, demonstrating our commitment to maintaining stability and delivering value to our shareholders," stated Andrea Lieuwen, chief financial officer of ESE.

Q1 2023 operational highlights:

  • In November, 2022, ESE achieved record monthly e-commerce revenue.
  • In December, 2022, ESE's e-sports team, K1CK, qualified for an e-sports event with a $1-million (U.S.) prize pool.
  • On Jan. 4, 2023, ESE announced that its e-sports competition, Ultraliga, surpassed 10 million views in 2022.
  • On Jan. 10, 2023, Mr. Wasiela was featured in an interview and article with the Toronto Star.
  • In January, 2023, ESE completed a non-brokered private placement of units for aggregate gross proceeds of $2-million.

The financial and operating results discussed in this news release are based on the financial statements and MD&A, which were released on March 31, 2023. 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.

All amounts are in Canadian dollars.

About ESE Entertainment Inc.

ESE is a global 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.

(1) This news release includes references to adjusted EBITDA. Adjusted EBITDA is a non-IFRS (international financial reporting standards) financial measure and is defined by the company as net income or loss before income taxes, depreciation, commissions, finders' fees and stamp duty for acquisitions, share-based payments, interest, impairment of assets, accretion, and foreign exchange gain or loss. The company believes that adjusted EBITDA is a useful measure of financial performance because it provides an indication of the company's ability to capitalize on growth opportunities in a cost-effective manner, finance its continuing operations and service its financial obligations.

This non-IFRS financial measure is not an earnings or cash flow measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. The company's method of calculating such a financial measure may differ from the methods used by other issuers and, accordingly, its definition of this non-IFRS financial measure may not be comparable with similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of the company's performance or to cash flows from operating activities as measures of liquidity and cash flows.

(2) Current ratio is current assets divided by current liabilities.

We seek Safe Harbor.

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