2022-08-25 | TSXV:RGG | Press release
- Q2 revenue increased to $845,543 from $39,902 in Q2 2021
- The second quarter represents the first fully integrated quarter of business since the acquisition of LOOT.BET February 18, 2022
- Recent corporate and operational highlights:
- Leigh Hughes appointed CEO
- LOOT.BET launches licensed online sports betting platform in the Isle of Man
- LOOT.BET obtains GLI-19 certification
- LOOT.BET signs a partnership agreement with Oddin.gg
- LOOT.BET signs white label agreement with HHRP for the Philippines
- Compete.gg gets access to the Riot Games API
- Parabellum Esports gets its first paid sponsorship with Shakepay
- React Gaming upgraded to OTCQB
MONTREAL, Aug. 25, 2022 (GLOBE NEWSWIRE) — React Gaming Group Inc. (“react to the game” or the “society”) (TSXV: RGG, OTCQB: ITMZF) is pleased to report its results for the second quarter ended June 30, 2022. All amounts are in Canadian dollars unless otherwise noted.
|(In Canadian dollars)||Three months completed
|Six months ended
|Gross profit||322 922||39,902||614 187||63,007|
|Loss per share — basic and diluted||(0.009)||(0.006)||(0.031)||(0.010)|
“This was a quarter of a big accomplishment for React Gaming, as we increased LOOT.BET revenue in absolute terms by 25% over Q1 before we even launched our IOM site and achieved GLI-19 certification. , while making steady gains with Compete.gg and Parabellum,” said Leigh Hughes, CEO of React Gaming.
“The initiatives we launched in the second quarter will allow LOOT.BET to gain market share in the B2C and B2B space with the launch of its IOM site and the GLI-19 certification. In addition, the partnership with Oddin. gg will enhance the capabilities of our online betting platform and help LOOT.BET expand its operations worldwide.”
“Our primary near-term goal is to grow our business, manage our operations to become profitable, and successfully secure B2B white-label deals as we enter new markets. We believe we we have all the elements to take LOOT.BET to the next level and monetize our other assets,” Mr. Hughes added.
For the second quarter of 2022, revenue increased to $845,543 from $39,902 for the same quarter a year ago. The increase is mainly due to Livestream and its operating entity LOOT.BET. Revenue for the first six months of the year reached $1,179,504, compared to $63,007 for the same period a year ago.
Gross profit for the second quarter totaled $322,922 (38.2% of total revenue) compared to $39,020 in 2021. Gross profit for the first six months of the year increased to $614,187 (52. 1% of total revenues) compared to $63,007 for the same period a year ago. .
The operating loss for the second quarter totaled $(2,729,558) compared to $(695,668) in 2021. The increase is mainly due to LOOT.BET operating costs and professional fees related to operations in Livestream course. For the six-month period, the operating loss was ($6,195,107) versus ($1,016,477).
EBITDA1 loss increased to $(2,535,197) for the second quarter of 2022 from $(699,393) a year ago primarily due to higher net loss and gain on revaluation of performance contingency. For the six-month period, the EBITDA loss amounted to $(4,623,372) compared to $(998,156) a year ago.
For the second quarter ended June 30, 2022, the Company recorded a net loss of ($1,532,382 or ($0.009) per basic and diluted share, compared to ($712,167) or ($0.006) per share basic and diluted for the corresponding period of 2021. For the six-month period, the net loss was $(4,909,351) or ($0.031) per basic and diluted share, compared to ($1,042,256) or ($0.010) per share basic and diluted a year ago.
As of June 30, 2022, the Company had cash and cash equivalents of $1,536,871.
|(1)||The term EBITDA (earnings before interest, taxes, depreciation and amortization) does not have a standardized meaning prescribed by IFRS. Therefore, EBITDA may not be comparable to similar measures presented in other financial statements of other companies. The Company defines EBITDA as profit or loss from continuing operations before amortization of tangible and intangible assets, provision for impairment of goodwill and other intangible assets, interest, gains or losses on disposal of assets, gains or losses on settlement of debts, gains or losses on exchange and income taxes.|
Reconciliation of net loss to EBITDA
|(In Canadian dollars)||Three months completed
|Six months ended
|Amortization of assets and other intangible fixed assets||326 227||(185)||486,964||21,321|
|Loss on assets written off||5,300||–||32,165||–|
|Stock-based compensation expense||(21,842)||–||1,069,318||–|
|Gain on revaluation of performance contingency||(1,315,790)||–||(1,315,790)||–|
About the React Gaming Group
React Gaming Group (formerly known as Intema Solutions Inc.) (TSXV: RGG) is a publicly traded holding company standing at the forefront of the esports and gaming industry. iGaming. By investing in innovative technologies that improve tournaments, teams and betting, we provide our users with gaming platforms that produce uninterrupted action, exciting results and unparalleled fun. Through the use of smart data, we also connect our sponsors to strong communities within a rapidly changing industry, ensuring maximum engagement and substantial reward. For more information, visit reactgaming.ca and follow us on LinkedIn, Twitter, instagram and Youtube.
This press release may contain “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements are necessarily based on a number of estimates and assumptions which, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These statements can generally be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “believe” or “continue”, or the negative of it or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by such forward-looking statements. and forward-looking statements. statements are not guarantees of future performance. The statements of the Company expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties and conditions, many of which are beyond the Company’s control, and undue reliance should not be placed on these statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Company’s business, including: that the Company’s assumptions in making forward-looking statements may prove to be incorrect; general adverse market conditions and competition; the inability to fund operations and/or secure any future strategic investments necessary to implement new technologies; the inability to build a sustainable and conscientious business with a stronger online presence through new products in esports and gaming; failure to obtain or maintain one or more gaming licenses; and that market conditions related to the COVID-19 pandemic could adversely affect the results of the Company’s business or operations, including its results and financial condition. Except as required by securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
REACT GAMING GROUP INC.