ESE Entertainment Provides Corporate Update and H2 2022 Outlook
ESE Entertainment Inc. (OTCQX:ENTEF) reported exceptional growth in Q2 2022, achieving record revenues of $15.0 million, a staggering 1,994% increase year-over-year. The company also posted a gross profit of $3.82 million (up 2,748%) and positive adjusted EBITDA of $884,751, a turnaround from a loss in the previous year. Key milestones include successful acquisitions, strategic partnerships with tier-1 publishers, and continued expansion within esports and digital motorsports. ESE aims to sustain its growth momentum in the latter half of 2022.
- Achieved $15.0 million in revenue for Q2 2022, a 1,994% increase from Q2 2021.
- Gross profit of $3.82 million in Q2 2022, representing a 2,748% year-over-year increase.
- Positive adjusted EBITDA of $884,751 in Q2 2022, compared to an adjusted EBITDA loss of ($832,195) in Q2 2021.
- Successful acquisition of Gameaddik improving overall performance and revenue.
- Strong operational goals achieved, with an emphasis on sustainable growth and integration of acquisitions.
- None.
VANCOUVER, British Columbia, July 05, 2022 (GLOBE NEWSWIRE) -- ESE Entertainment Inc. (TSXV:ESE) (OTCQX:ENTEF) (the “Company” or “ESE”), is a global entertainment and technology company focused on gaming, particularly on esports. The Company provides a range of services to leading video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally.
To help new and existing investors better understand existing operations and future objectives, ESE Chief Executive Officer, Konrad Wasiela, is pleased to provide the following corporate update.
Mr. Wasiela stated, "As we enter the second half of 2022, I would like to take this opportunity to share some highlights and successes that ESE has accomplished in the first half of 2022. We have accomplished record revenue growth, positive adjusted EBITDA, established new relationships with global companies, formal working relationships with tier-1 publishers, and surpassed many operational goals. In addition, we have finalized our foundation, by completing a platform acquisition in February of 2022. Our team’s relentless work ethic, alongside a strategic business plan, yielded a successful first half of 2022. We are now setting our sights on following up the tremendous start to the year with even stronger quarters ahead.”
Financial Performance
In June 2022, ESE released its financial results for the quarter ended April 30, 2022, highlights of which include the following:
- Revenue of
$15.00 million for Q2 2022, representing a 1,994% increase from revenue for the three months ended April 30, 2021 of$0.72 million . - Gross profit of
$3.82 million for Q2 2022, representing a 2,748% increase from gross profit in Q2 2021 of$0.13 million . - Adjusted EBITDA1 of
$884,751 in Q2 2022, compared to adjusted EBITDA loss of ($832,195) in Q2 2021. - Total assets as at April 30, 2022 of
$38.06 million , compared to total assets as at April 30, 2021 of$15.94 million .
CEO Konrad Wasiela stated, “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.”
Operational Updates
Technology Business Unit
- Led by the Gameaddik acquisition, the business unit is now fully integrated within ESE infrastructure
- Continued record sales growth with new and major clients
- Released phase 1 of Singularity, a proprietary DataLake/BI infrastructure for big data ingestion and processing
- Continuing the next phases of Singularity DataLake/BI deployment with advanced machine learning insights
- Hired new key staff throughout company to support increased growth
Eric Jodoin, COO of ESE, commented, “Q2 has been an exciting ride for us, seeing our progress snowball on key strategic pillars such as hiring new talent and growth programs for employees, along with strengthening the relationship with major clients. We’re also very excited by the recent release of Singularity, our new DataLake infrastructure, which enables us to obtain vital insights to deliver faster campaign optimizations and increase user yield performance for our clients.”
Infrastructure Business Unit
- 2021 revenue increased organically
35% over 2020 - May 2022 was a record revenue month for business unit history
- Contract to provide technology support for one of the leading OTT infrastructure providers whose clients include some of the largest sports leagues and TV/cable broadcasters.
Digital Motorsports Business Unit
- Continued growth in ecommerce sales and achieving new sales targets
- Successfully executed the European Digital Motorsports Cup – a multinational event involving European ASN’s and the best drivers from across Europe.
- Became an integral part of the FIA Rallystar program and Digital Motorsports RACE award in partnership with the FIA.
- The company continues to build some of the best custom simulator solutions globally, including a VR simulator that was fully integrated into a real Fiesta WRC car for Ford’s MSRT division.
- Working with partners RACE Software, helped to develop one of the first digital twins – A one-to-one replica of ESE’s Radical SR3 race car with a view to progressing the driver development aspect of Motorsports simulation.
Rob King, Director of Digital Motorsports, commented, “There has never been a more exciting time for digital motorsports as an industry and Digital Motorsports as a company. Now part of the global ESE Entertainment family, we have the resources and opportunities that we always dreamed of at our fingertips. Our core focus is stability and steady, sustainable growth.”
Esports business unit
- The Company’s esports team, K1CK, launched in the game CS:GO
- In the game FIFA by Electronic Arts, K1CK qualified for the FPF Masters Finals, a competition organized by the Portuguese Football Federation that will take place in Lisbon
- Won the FPF Masters 2022, which means that ESE’s K1CK esports team is now the new FIFA National Champion in Portugal.
2022 Corporate Goals
- The Company will develop and deploy its proprietary DataLake/BI infrastructure for big data ingestion and processing.
- The Company will continue to evaluate the gaming landscape and look to secure more global-scale contracts with large video game publishers.
- The Company will look to add more senior management and advisors, with a focus on operational expertise.
- The Company will look to improve financial performance and increase margins.
- The Company plans to continue to expand its physical presence globally.
- Implementing a growth business plan with a strong focus on integration of acquisitions in order to maximize value and extract synergies.
CEO, Konrad Wasiela, concludes: “I want to personally thank all of ESE’s shareholders that have believed in our Company vision. We are executing on our business plan and continue to hit milestones quarter after quarter, in order to build long term shareholder value. Despite market conditions, our team is more energized and motivated than ever before to continue executing and scaling the Company. Our team is unlocking new synergies and opportunities in 2022, and we have built out a clear business plan for the coming years.”
About ESE Entertainment Inc.
ESE is a Europe based entertainment and technology company focused on gaming, particularly on esports. 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 ecommerce channels, esports 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 esports technology and infrastructure. | www.esegaming.com
Forward-Looking Statements
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 ESE 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: (i) the Company’s future revenues, and its ability to maintain revenue growth; (ii) the success of the Company’s past and future acquisitions; (iii) the ability of the Company to identify M&A targets, and its ability to execute on the same; (iv) the Company’s ability to identify and appoint suitable members of senior management, advisors, and other personnel; and (v) the Company’s ability to execute on its corporate goals for 2022, including securing more global-scale contracts with large video game publishers. 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 ESE 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 ESE, 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 ESE should be considered highly speculative.
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about ESE’s prospective results of operations, revenues and margins and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraph. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about ESE’s future business operations. ESE disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.
Non-IFRS Measures
This press release includes references to adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and is defined by the Company as net income or loss before income taxes, depreciation, commissions, finder's fees and stamp duty for acquisitions, share-based payments, interest, impairment of assets, accretion, and foreign exchange gain or loss. We believe 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 ongoing 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. Our method of calculating such a financial measure may differ from the methods used by other issuers and, accordingly, our definition of this non-IFRS financial measure may not be comparable to 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 our performance or to cash flows from operating activities as measures of liquidity and cash flows.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ESE Entertainment Inc.
For further information about ESE, please contact:
Apollo Shareholder Relations
investors@esegaming.com
+1 604-259-7540
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/24056cb8-9258-494e-8de3-1aea82c2ec37
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1 Adjusted EBITDA is a non-IFRS measure. Refer to “Non-IFRS Measures” at the end of this press release.
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