sports Entertainment Group Inc announced on Monday its fiscal first-quarter results for the three months ended September 30.
The esports and online gambling company brought in revenue of $222,392, an increase of $222,392 from $0 the same period a year ago, primarily thanks to its August 4 acquisition of online sportsbook and casino operator Argyll Entertainment AG, Proactive Investors reports.
“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,” CEO Grant Johnson said.
The company had total assets of $10.4 million and total current liabilities of $8.2 million as of September 30, resulting in working capital of $2.3 million. Cash and equivalents totaled $8.9 million.
During the quarter, Esports Entertainment also acquired Esports Gaming League and the assets of FLIP Sports. Also this quarter, Esports Entertainment joined the Nasdaq exchange.
“As we look ahead, we believe the acquisitions we have made as well as those we plan to make, combined with a growing list of world-class partnerships, Esports Entertainment is in a great position to accelerate the monetization of our robust three pillar strategy,” Johnson added.
Looking ahead, the company is maintaining its guidance of $13 million in revenue in fiscal 2021 and $25 million in revenue in fiscal 2022 from its core Argyll and VIE platforms. Including the acquisitions of Helix Esports and ggCircuit, the company expects to report $42 million in revenue in fiscal 2022 with positive EBITDA of $2 million.
To that end, October has seen a significant uptick, with levels of turnover, Gross gaming revenue and net revenue returning to pre-coronavirus levels, the company said. Total handle was above $16 million for the month of October and revenue for the month was above $600,000.
“We have achieved many significant milestones since uplisting to the NASDAQ in April,” Johnson said. “The COVID-19 pandemic has absolutely accelerated the rapid growth of esports leading to mainstream broadcasts to national TV audiences on ESPN and Fox. 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.”