Real Luck Group cuts losses in Q1 2022 – Quarterly results

Real Luck Group has reported a significant revenue of CAD$18,613 (£11,689/€13,747/USD$14,690) for the quarter ending March 31.

In contrast to Q1 2021, there was no comparable revenue recorded, highlighting the company’s remarkable progression. This year’s robust performance can largely be attributed to the strategic expansion of its Luckbox-branded online casino, which concluded the quarter boasting an impressive lineup of 421 live games.

Moreover, Real Luck Group has actively established partnerships with over 50 affiliate sites to enhance traffic to its real-money esports betting, sports betting, and online casino products. This collaboration significantly bolsters visibility and accessibility within the competitive gambling landscape.

Throughout this timeframe, Real Luck emphasized the development of its proprietary platform, indicating an initial expectation of minimal revenue generation in the short term. However, the company is poised for substantial growth as it shifts focus towards aggressive player marketing strategies aimed at scaling revenue in the upcoming year.

Cost of sales for the quarter amounted to CAD$63,832, reflecting a commendable year-on-year reduction of 27.3%. This contraction resulted in a top-line loss of CAD$45,219, which represents almost a 50% decrease compared to the previous year.

Overall expenses totaled CAD$2.0 million, indicating a year-on-year decline of 12%. Salaries and director fees were the most significant expense, reaching CAD$465,098—a slight decrease of 4.3%. In contrast, consulting fees surged by 42.8% to CAD$451,382, while general and administrative expenses escalated by a remarkable 138.1% to CAD$322,961.

The remaining CAD$797,414 encompassed other expenditures, including legal fees, professional services, depreciation, and insurance. Following an additional CAD$10,761 in expenses, Real Luck Group registered a Q1 operating loss of CAD$2.0 million, marking a 13.7% improvement compared to 2021.

An income tax benefit of CAD$1,453 slightly mitigated the operator’s net loss, aided by favorable currency exchange rates. As a result, the comprehensive loss for the quarter decreased by 16.1%, totaling CAD$2.0 million.

“The first quarter of 2022 demonstrated our commitment to enhancing our platform, as we aim to establish ourselves as the world’s leading esports betting destination,” stated Thomas Rosander, CEO of Real Luck Group. “We have successfully launched over 400 games and products, including the recently introduced online Luckbox casino, designed to provide engaging content and generate immediate revenue for the business.”

Additionally, during this period, Real Luck Group strengthened its leadership team by appointing Benn Timbury as Chief Operating Officer and Bo Wanghammer to its Board of Directors, reinforcing the company’s strategic direction and operational capabilities.