EEG(US:GMBL)2020-11-17 02:35Financial Data and Key Metrics Changes - The company expects revenue of $13 million for fiscal 2021 and $25 million for fiscal 2022, with EBITDA projected at -$9 million and -$1.4 million respectively [24] - Pro forma for the acquisition of ggCircuit and Helix, fiscal 2022 revenue guidance has been revised to $42 million, with EBITDA improving to positive $2 million [24] - Total net loss for the period was $1.8 million, primarily due to reduced revenues related to measures taken post the Gambling Commission Audit [35] Business Line Data and Key Metrics Changes - Revenue from the Argyll brands was $222,000 in the two months following the acquisition, significantly impacted by COVID-19 and compliance audits [25] - Active customers reduced by 67% compared to the prior quarter, with new first-time deposits (FTDs) down by 47% and average player values falling by over 50% due to temporary protective measures [31] - In October, active customer base exceeded 11,000 players, with revenues surpassing $600,000, indicating a recovery [32] Market Data and Key Metrics Changes - The esports market has over 500 million viewers globally, making it the fastest-growing subsector of digital media, with the pandemic accelerating growth [5] - The company has seen increased engagement from traditional sports teams seeking to connect with fans through esports during the pandemic [17][18] Company Strategy and Development Direction - The company operates under a three-pillar growth strategy: Esports Entertainment and Infrastructure, Esports Wagering, and Traditional Online Sports Booking Casino [7][8][10] - Recent acquisitions, including FLIP Sports and Esports Gaming League, are aimed at enhancing the company's technology stack and expanding its service offerings [14][16] - The company plans to launch its proprietary wagering platform in New Jersey by the end of March and expand into additional U.S. states during fiscal 2022 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a return to pre-COVID levels of activity in October and a positive outlook for the next 12 months [37] - The pandemic has created opportunities for online engagement, which the company is positioned to capitalize on, despite challenges in LAN-based operations [42] Other Important Information - The company has received approval for a multi-gaming license, allowing it to operate in 150 jurisdictions globally, enhancing its market reach [11] - The integration of a customer affordability tool is expected to improve player protection and compliance, although it temporarily impacted revenues [29][30] Q&A Session Summary Question: How is COVID impacting development plans? - Management noted that while COVID has negative aspects, online activity has increased, providing opportunities for revenue growth through tournament platforms [40][41] Question: What are the financing details for the $43 million acquisition? - The acquisition will be financed through a mix of 60% equity and 40% cash and debt, with a shareholder vote expected in January [47] Question: What is driving the revenue growth in October and November? - Revenue growth is attributed to increased player retention and acquisition through new channels, with expectations to reach $1 million in revenue by December [54]