React Gaming reports 2022 second quarter results
React Gaming Group reported a strong Q2 2022 with revenue soaring to $845,543, up from $39,902 in Q2 2021, marking a 25% increase from Q1. This growth followed the acquisition of LOOT.BET in February 2022. Gross profit reached $322,922 (38.2% of revenue), while the net loss increased to $(1,532,382) or $(0.009) per share. The company aims to expand market share with new partnerships and services, focusing on profitability in the esports and iGaming sectors.
- Q2 revenue increased to $845,543 from $39,902 in Q2 2021, a significant growth of 1,114%.
- Gross profit rose to $322,922, representing 38.2% of total revenue.
- LOOT.BET launched an Isle of Man-licensed online esports betting platform.
- Partnership agreements with Oddin.gg and HHRP for enhanced operations.
- Company upgraded to the OTCQB, improving trading visibility.
- Net loss increased to $(1,532,382) from $(712,167) in Q2 2021.
- Operating loss expanded to $(2,729,558) compared to $(695,668) in the prior year.
- EBITDA loss worsened to $(2,535,197) from $(699,393) year-over-year.
- First-half losses totaled $(4,909,351), up from $(1,042,256) in 2021.
- Q2 revenue increased to
$845,543 from$39,902 in Q2 2021
- Q2 represents first fully-integrated quarter of operations since the acquisition of LOOT.BET on February 18, 2022
- Recent corporate and operational highlights:
- Leigh Hughes appointed as CEO
- LOOT.BET launches Isle of Man-licensed online esports betting platform
- LOOT.BET obtains GLI-19 certification
- LOOT.BET signs partnership agreement with Oddin.gg
- LOOT.BET signs white label agreement with HHRP for the Philippines
- Compete.gg granted access to Riot Games API
- Parabellum Esports secures first paid sponsorship with Shakepay
- React Gaming upgraded to the OTCQB
MONTREAL, Aug. 25, 2022 (GLOBE NEWSWIRE) -- React Gaming Group Inc. (“React Gaming” or the “Corporation”) (TSXV: RGG, OTCQB: ITMZF) is pleased to announce its results for the second quarter ended June 30, 2022. All amounts are in Canadian dollars unless otherwise indicated.
| (In Canadian dollars) | Three months ended June 30 | Six months ended June 30 | ||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| Revenue | 845,543 | 39,902 | 1,179,504 | 63,007 | ||||
| Gross profit | 322,922 | 39,902 | 614,187 | 63,007 | ||||
| EBITDA1 | (2,535,197) | (699,393) | (4,623,372) | (998,156) | ||||
| Net loss | (1,532,382) | (712,167) | (4,909,351) | (1,042,256) | ||||
| Loss per share — basic and diluted | (0.009) | (0.006) | (0.031) | (0.010) | ||||
“This has been a quarter of great achievements for React Gaming, as we increased LOOT.BET’s revenue in absolute value by
“The initiatives we set in motion in Q2 will enable LOOT.BET to gain market share in the B2C and B2B space with its IOM site launch and GLI-19 certification. In addition, the partnership with Oddin.gg will enhance our online betting platform capabilities and help LOOT.BET to scale its operations worldwide.”
“Our main goal for the short term is to grow our business, manage our operations so that they become profitable and successfully conclude white-label B2B agreements as we enter new markets. We believe that we have all the elements to bring LOOT.BET to the next level and monetize our other assets,” Mr. Hughes added.
OPERATING RESULTS
For the second quarter of 2022, revenue increased to
Gross profit for the second quarter totalled
The operating loss for the second quarter totalled
The EBITDA1 loss increased to
For the second quarter ended June 30, 2022, the Company recorded a net loss of
As at June 30, 2022, the Corporation had cash and cash equivalents of
| (1) | The term EBITDA (earnings before interest, taxes, depreciation, and amortization) does not have a standardized meaning prescribed by IFRS. Therefore, EBITDA may not be comparable to similar measures presented in other financial statements of other companies. The Company defines EBITDA as income from continuing operations before amortization of tangible and intangible assets, provision for impairment of goodwill and other intangible assets, interest, gains or losses on disposal of assets, gains on debt settlement, gains or losses on foreign exchange and income taxes. |
Reconciliation of net loss to EBITDA
| (In Canadian dollars) | Three months ended June 30 | Six months ended June 30 | ||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| Net loss | (1,532,382) | (712,167) | (4,909,351) | (1,042,256) | ||||
| Interest expense | 3,290 | 12,959 | 13,322 | 22,779 | ||||
| Depreciation of assets and other intangible assets | 326,227 | (185) | 486,964 | 21,321 | ||||
| Loss on assets written off | 5,300 | - | 32,165 | - | ||||
| Stock-based compensation expense | (21,842) | - | 1,069,318 | - | ||||
| Gain on revaluation of performance contingency | (1,315,790) | - | (1,315,790) | - | ||||
| EBITDA | (2,535,197) | (699,393) | (4,623,372) | (998,156) | ||||
About React Gaming Group
React Gaming Group (formerly known as Intema Solutions Inc.) (TSXV: RGG) is a publicly traded holding company that stands at the forefront of the esports and iGaming industry. By investing in innovative technologies that enhance tournaments, teams and wagering, we provide our users with gaming platforms that produce non-stop action, exciting outcomes and unparalleled enjoyment. Through the use of intelligent data, we also connect our sponsors to robust communities within the rapidly evolving industry, ensuring maximum engagement and substantial reward. For more information, please visit us at reactgaming.ca and follow us on LinkedIn, Twitter, Instagram and YouTube.
Forward-Looking Statements
This news release may contain “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. The Corporation's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of the Corporation's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Corporation’s activities, including: that the Corporation's assumptions in making forward-looking statements may prove to be incorrect; general adverse market conditions and competition; the inability to finance operations and/or obtain any future strategic investment necessary to implement new technologies; the inability to build a sustainable, conscientious company with a stronger presence online through new products in esports and gaming; the inability to obtain, or maintain, gaming license(s); and that market conditions related to the COVID-19 pandemic may negatively affect the outcome of the business or operations of the Corporation, including its results and financial condition. Except as required by securities law, the Corporation does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
REACT GAMING GROUP INC.
Leigh Hughes
1-514-861-1881
info@reactgaming.ca
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