Enthusiast Gaming Holdings Inc. (TSX: EGLX)(OTCQB:ENGMF)(FSE: 2AV)
(“
Enthusiast Gaming” or the
“
Company”) announced its financial results for the
fourth quarter and year ending December 31, 2019. All financial
information is presented in Canadian dollars unless otherwise
indicated.
On the back of strong year-to-date performance
and execution against our key objectives, during the fourth quarter
of 2019 all of our business units continued to outperform and
exceed expectations. The quarter resulted in pro forma revenue of
$10 million, reached new record levels and contributed to more than
doubling full year revenues, while increasing gross margin
steadily,” said Adrian Montgomery, CEO of Enthusiast
Gaming. “We continue to meet and in most instances exceed
our operational targets across the Enthusiast platform, which
alongside our strong balance sheet allows us to augment and
complement our organic growth performance with strategic growth
opportunities. At the same time, we are mindful and monitoring the
impact of COVID-19 on our business during these difficult times
across the globe; however, so far we are experiencing increased
engagement on our media platform. Following our record Q4,
management is relentlessly focused on increasing both viewer
engagement - which is our key differentiator - and revenue per
viewer. We will continue to unlock existing and new revenue streams
to accomplish this goal and management is confident in the team's
ability to execute on our disciplined growth strategy.”
Q4 2019 Financial
Highlights
- For the three-month period ended December 31, 2019, total
revenue was $9.2 million and pro forma total revenue was $10
million. When compared to the pre-merger Enthusiast revenue in Q4
2018, the pro forma total revenue represents a 178% increase
year-over-year. The pro forma difference in Q4 2019 relates to
revenue generated in Steel Media prior to its acquisition during
the quarter. The increase in revenue came as a result of Enthusiast
achieving growth in all of its lines of business, including: (1)
Higher engagement in the form of views on the Enthusiast Gaming
media platform, which grew 66% compared to Q4 2018, and led to
higher media revenue in the quarter; (2) Subscription revenue
growth on the Company’s The Sims Resource property; (3) Higher
sell-through advertising rates in the form of CPM’s, led by the
Company’s continued efforts in driving higher value direct sales
opportunities; (4) Growth in the Company’s entertainment business,
and its flagship events, EGLX and Pocket Gamer Connects; and (5)
Growth in the Company’s esports division, Luminosity
Gaming.
- Consolidated pro forma gross margin for the quarter was 34% and
in line with the Company’s expectations.
- Viewer engagement increased to 1.7 billion views across the
Company’s media platform, an increase of 66% compared to Q4 2018.
The increase is a testament to Enthusiast Gaming’s ability to both
increase the stickiness of its hard-core gaming fan base but also
due to increasing the size of its media platform through organic
growth and strategic M&A opportunities.
- The Company completed a number of mergers and acquisitions
during the year which had a significant impact on the Consolidated
Statements of Loss and Comprehensive Loss. Net loss was $78.5
million, and includes the following significant items relating to
the mergers and acquisitions: listing expense of $6.8 million;
transaction costs of $3.2 million; and a goodwill impairment on
acquisition of businesses of $46 million. Other significant
non-cash expenses include amortization and depreciation of $2.9
million and share-based compensation expense of $6.1 million.
- With the audited financial statements now complete, the Company
expects 1,071,876 common shares to be returned to treasury in
satisfaction of a working capital requirement relating to the
Luminosity Gaming acquisition.
- The Company ended 2019 with a strong balance sheet with $13.2
million in cash.
Other Q4 2019 Highlights
- The Company completed the acquisition of Steel Media Limited.,
a leading mobile gaming media and live events company, based in the
UK and best known for its “Pocket Gamer” brand. The acquisition of
Steel Media unlocked a new audience segment for Enthusiast Gaming,
the highly coveted and rapidly growing mobile gaming segment.
- The Company’s entertainment division, EG Live, hosted its most
successful EGLX, consumer gaming event in Toronto from October
18-20, 2019. With over 30,000 attendees, the expo saw the addition
of several new programming tracks, including an Industry track, the
introduction of the EGLX Rising Stars competition and the hosting
of Ubisoft’s 2019 Rainbow 6 Canadian Nationals. Rising Stars
achieved over 7 million live views on Twitch’s live streaming
platform over the duration of the event.
- The Company was verified as the largest gaming platform in
North America and the United Kingdom by comScore, a leading
third-party traffic measurement source. The Enthusiast Gaming Media
Platform reaches more gamers than any other gaming company in the
English-speaking regions throughout the world.
- Enthusiast Gaming completed a listing in the United States on
the OTCQB under the symbol: ENGMF, providing an opportunity to
diversify its shareholder base with increased liquidity and brand
visibility while maintaining a high level of transparent
trading.
- On December 18, 2019, the Company received conditional approval
to graduate to Toronto Stock Exchange, a transition that only
approximately 1% of all TSX Venture listed companies make each
year.
Events Subsequent to the
Quarter
- On January 20-21, 2020, The Company hosted its flagship
mobile gaming event, Pocket Gamer Connects, in London, UK. With
nearly 2,500 attendees, 310 speakers and over 100 sponsors, PG
Connects hit record breaking numbers and continues to be one of the
most influential B2B mobile gaming event series worldwide.
- On January 27, 2020, Enthusiast Gaming graduated to the Toronto
Stock Exchange from the TSX Venture under the ticker symbol,
EGLX.
- On February 24, 2020, The Company reported that Chairman,
Francesco Aquilini, purchased 250,000 shares in the open
market.
- In March, the Company signed exclusive advertising agreements
with MC PEDL, a leading independent, Minecraft community and
Fextralife, a leading video game news resource and gaming hub.
Collectively, both communities reach 9.5 million users and generate
almost 90 million views monthly.
Although it's too early to assess the overall
impact of the global COVID-19 pandemic, the Company has seen an
increase in overall media platform engagement, since the pandemic
began. While advertising rates have declined in recent weeks, the
net increase in advertisements served is currently
outweighing the decrease in advertising rates price. Further,
mitigating the exposure to declining advertising rates, Enthusiast
Gaming has seen a marked increase in paid subscriptions on The Sims
Resource, a further indication of the value proposition The Sims
Resource represents to its fans. The Company continues to monitor
its platform during this time of social distancing and
isolation.
Enthusiast Gaming’s largest events are the EGLX
Expo, the largest gaming event in Canada, and Pocket Gamer Connects
in London. EGLX occurred in October 2019, and PG Connects London
was recently held in January 2020. It is too early to tell if these
events scheduled for the same times in 2020 and 2021 will be
affected by COVID-19. The Company has tentatively rescheduled a
PG Connects event slated for Seattle in May to later in the
2020.
These are the first annual consolidated
statements since the merger, that closed on September 3, 2019,
between Enthusiast Gaming, Luminosity Gaming, GameCo, and J55 Corp
and subsequent acquisition of Steel Media. GameCo (renamed
Enthusiast Gaming Holdings Inc.) has been identified as the
acquirer in all transactions, accordingly the financial statements
are a continuation of the financial statements of GameCo and do not
include previous revenue from Enthusiast Gaming, Luminosity or J55.
Due to the exclusion of Enthusiast Gaming, Luminosity, and Steel
Media revenues prior to their respective transactions, GAAP revenue
for the year ending December 31, 2019 was $11.6 million, compared
to pro forma revenue of $23.6 million.
Certain information provided in this news
release is extracted from the unaudited condensed consolidated
interim Financial Statements and MD&A of the Company for the
three and twelve months ended December 31, 2019, and should be read
in conjunction with them. It is only in the context of the fulsome
information and disclosures contained in the unaudited condensed
consolidated interim Financial Statements and MD&A that an
investor can properly analyze this information.
About Enthusiast Gaming
Enthusiast Gaming (TSX: EGLX)(OTCQB: ENGMF)(FSE:
2AV) is building the world’s largest platform of communities for
gamers and esports fans. Already the largest gaming platform in
North America and the United Kingdom, the Company’s business is
comprised of three main pillars: Media, Events and Esports.
Enthusiast Gaming’s digital media platform includes approximately
100 gaming related websites and 900 YouTube channels which
collectively reach 160 million visitors monthly. The Media platform
generates over 30 billion ad requests and nearly a billion views
per month. Enthusiast’s esports division, Luminosity Gaming, is a
leading global esports franchise that consists of 7 professional
esports teams under ownership and management, including the
Vancouver Titans Overwatch team and the Seattle Surge Call of Duty
team. Collectively, the integrated ecosystem reaches over 200
million gaming enthusiasts on a monthly basis. Enthusiast Gaming’s
entertainment division, EG Live, owns and operates Canada’s largest
gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.com) and the
largest mobile gaming event in Europe, Pocket Gamer Connects
(www.pgconnects.com). For more information on the Company visit
www.enthusiastgaming.com. For more information on Luminosity Gaming
visit luminosity.gg.
CONTACT INFORMATION:
Alex MacdonaldChief Financial Officer (416) 623-9620
Investor Relations: Julia BeckerHead of
Investor Relations & Marketingjbecker@enthusiastgaming.com(604)
785.0850
This news release contains certain statements
that may constitute forward-looking information under applicable
securities laws. All statements, other than those of historical
fact, which address activities, events, outcomes, results,
developments, performance or achievements that Enthusiast
anticipates or expects may or will occur in the future (in whole or
in part) should be considered forward-looking information. Such
information may involve, but is not limited to, comments with
respect to strategies, expectations, planned operations and future
actions of the Company. Often, but not always, forward-looking
information can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or variations
(including negative variations) of such words and phrases, or
statements formed in the future tense or indicating that certain
actions, events or results "may", "could", "would", "might" or
"will" (or other variations of the forgoing) be taken, occur, be
achieved, or come to pass. Forward-looking information is based on
currently available competitive, financial and economic data and
operating plans, strategies or beliefs as of the date of this news
release, but involve known and unknown risks, uncertainties,
assumptions and other factors that may cause the actual results,
performance or achievements of Enthusiast to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking information. Such
factors may be based on information currently available to
Enthusiast, including information obtained from third-party
industry analysts and other third-party sources, and are based on
management's current expectations or beliefs regarding future
growth, results of operations, future capital (including the
amount, nature and sources of funding thereof) and expenditures.
Any and all forward-looking information contained in this press
release is expressly qualified by this cautionary statement.
Trading in the securities of the Company should be considered
highly speculative.
Neither the TSX Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Enthusiast Gaming (TSXV:EGLX)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Enthusiast Gaming (TSXV:EGLX)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024