Luckbox expenses grow in Q3 as operator prepares for casino launch – esports betting

Luckbox, an emerging player in the esports betting sector, reported third-quarter revenue figures of CAD $7,238 (approximately $5,670 / £4,244) for the year 2021. This marks a significant decline of 78.7% compared to the same period in the previous year, amid a strategic shift as the company prepares to launch its online casino offering.

After accounting for sales costs totaling CAD $66,960, the net revenue revealed a quarterly loss of CAD $59,722, widening from a loss of CAD $53,654 recorded in 2020.

During the quarter, total expenses escalated to CAD $1.9 million, reflecting a staggering increase of 171.4% year-over-year. The largest expense category consisted of consulting fees, which amounted to CAD $407,134. Additionally, salaries and director fees accounted for CAD $381,645, while share-based compensation reached CAD $358,849.

Legal fees totaled CAD $278,643, and administrative costs were reported at CAD $201,878. The company also invested CAD $142,253 in advertising and marketing initiatives. When combined with other expenses amounting to CAD $32,181, net losses before tax hit CAD $1.9 million. After factoring in CAD $4,572 for income tax expenses, total net losses for the quarter stood at CAD $1.92 million, reflecting a year-over-year increase of 137.5%.

CEO Thomas Rosander expressed optimism about the company’s Q3 performance, emphasizing the groundwork laid for the upcoming launch of its casino product, slated for Q4. Rosander stated, “Our team has concentrated on enhancing our proprietary platform by establishing a robust business intelligence infrastructure. This initiative aims to deliver a unique, modern user experience tailored to meet the expectations of the next generation of bettors, all while maximizing the range of esports betting opportunities.”

He further noted, “I am pleased to report that our efforts during Q3 have set the stage for the inclusion of casino gaming, which is anticipated to be a significant short-term revenue driver, going live in Q4. Consequently, we will commence our player acquisition initiatives in Q1 2022, marking the first significant marketing campaign in our company’s history.”

In another positive development, Luckbox highlighted the appointment of David Conde as Head of Data as a key achievement in Q3. Moreover, the company secured a sports betting partnership with BtoBet, a sportsbook provider owned by Aspire Global, further solidifying its position in the competitive landscape of esports betting.