Esports Technologies begins 2022 fiscal year with $7.1m in Q1 revenue – Quarterly results

Esports Technologies Reports Strong Q1 Revenue as Strategic Acquisitions Propel Growth

Esports Technologies, a leading provider of technology solutions for esports betting, has reported impressive revenue figures of $7.1 million for the first quarter of its 2022 fiscal year. This marks a significant growth trajectory, reflecting an increase from $5.2 million to $6.2 million in the preceding quarters.

Key financial metrics highlighted a gross profit of $2.5 million for the three-month period ending December 31, 2021. This robust performance was largely attributed to a particularly strong showing in December, aligning with increased engagement during major esports events.

Despite the positive revenue outlook, the company reported an adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) of -$3.9 million. However, it generated net cash from operating activities totaling $3.0 million during the same period, strengthening its financial foundation.

Esports Technologies successfully bolstered its cash reserves by reaching $11.8 million, representing an increase of $2.8 million compared to the fiscal year’s end on September 30, 2021. This financial stability positions the company well for future investments and expansions in the rapidly evolving esports sector.

During this quarter, Esports Technologies finalized its transformative $75.9 million acquisition of Aspire Global’s B2B assets, a strategic move initially announced in October 2021. This acquisition not only enhances the company’s technological capabilities but also secures a license to operate in Great Britain, facilitating entry into robust regulated markets such as Germany, Ireland, and Denmark, along with access to 1.25 million depositing customers.

Setting a decisive target, Esports Technologies aims to achieve $70 million in revenue by the end of September 2022. CEO Aaron Speach expressed confidence in the company’s trajectory, stating, “We’re very pleased with our accomplishments in the first quarter of 2022, having made significant strides towards our goal of becoming the leader in esports wagering and technology. Our vision is to deliver unique wagering experiences to the 550 million underserved esports fans globally.”

In line with its innovative agenda, Esports Technologies has expanded its product portfolio by filing multiple patents recently. Notably, a patent for an electronic sports betting exchange system was filed in November, followed by another for financial instrument betting in January. These innovations reflect the company’s commitment to enhancing the esports betting experience.

Chief Financial Officer Jim Purcell reinforced the company’s optimism, commenting, “I believe we now operate a business of scale, which serves as a platform for future growth. Our proposed acquisition results are aligning with our expectations, providing us with the confidence needed to reach our ambitious goal of $70 million for fiscal 2022.”

As Esports Technologies forges ahead, it exemplifies the dynamic potential of the esports gambling industry, combining strategic acquisitions with innovative technology to redefine the wagering landscape for millions of fans worldwide.