Esports Entertainment Group has published its financial results for the third quarter of its financial year – the three months ending March 31, 2021 – showing total revenue of $5.4m for the period.
No revenue was recorded for the three months to March 31, 2020 to provide a year-on-year comparison, however Q3 2021 revenue was up 129% from $2.4m in the three months to December 31, 2020.
Esports Entertainment Group said the quarter-on-quarter increase was driven primarily by the completion of the Lucky Dino Gaming acquisition on March 1 2021, and was aided by the launch of its SportNation.com and Vie.bet brands into new jurisdictions under its Malta Gaming Authority license.
Total operating expenses came to $11.0m for the period, made up of $6.3m in general and administrative costs, $2.4m in sales and marketing expenses, with a further cost of revenue of $2.3m.
Total expenses were up significantly from $551,058 in the three months to March 31, 2020, and from $8.1m in the three months ending December 31, 2020. After expenses, the group was left with an operating loss of $5.6m for Q3 2021.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) came to a $2.1m loss for the quarter, with a negative adjusted EBITDA of $8.5m for the nine months to March 31. The negative EBITDA figure for the three months to December 31 was $3.8m.
The company made a further loss of $5.4m on the change in fair value of warrant liability, and a $1.3m loss on the change in fair value of contingent consideration. Other non-operating losses came to $165,464.
This left the company with a net loss of $12.4m for the quarter, up from a $6.3m net loss for the same period in 2020. It showed a cumulative net loss of $21.5m over the nine-month period to March 31, 2021.
Esports Entertainment Group said that it remains committed to its previously communicated full fiscal year 2021 revenue guidance of $18m, and its fiscal year 2022 revenue guidance of $70m.