Esports Entertainment Group, a global iGaming company and B2B esports solutions provider, published its financial results for the fiscal year ending on June 30, 2023.

Image Credit: Esports Entertainment Group

Esports Entertainment Group decrease net losses compared to 2022

The company is a licensed “esports-focused” iGaming B2C operator and a US-focused B2B provider of esports solutions. Below are some of the highlights from the financial results of the company:

Revenue: $23.0 million for the fiscal year ended June 30, 2023, down from $58.4 million in 2022 (comparable period)
Cost of revenue: $8.8 million for the fiscal year ended June 30, 2023, decreasing from $24.2 million in the 2022 fiscal year
Sales and marketing expenses: $5.9 million for the fiscal year ended June 30, 2023, decreased from $25.7 million in the 2022 fiscal year
General and administrative expenses: $28.9 million for the fiscal year ended June 30, 2023, decreasing from $51.3 million for the 2022 comparable period
Net loss (for fiscal year): $32.3 million, down from $102.2 million recorded in 2022.

EEG going through a restructuring process

In a year where companies have struggled with the global economic fear of recession, Esports Entertainment Group (EEG) has been going through a major restructuring process.

“We conducted a deep dive into our business from top to bottom and pinpointed operations and contracts that weren’t profitable, leading to decisive actions that have set us up for a promising future,” commented Alex Igelman, CEO of Esports Entertainment. “Although the restructuring came with one-time expenses, we are confident that the long-term advantages will significantly outweigh these costs”.

This will allow EEG to reduce its annual operating expenses by more than $4 million. The company also reduced total liabilities by approximately $51.8 million since January 2023: ” This period of time in the Company’s evolution marks a pivotal shift and new beginning, allowing us to leave behind past barriers and shape a path that maximizes our potential for success, which we believe will drive significant revenue growth and value for our shareholders,” added Igelman.

The company recently announced a partnership with Oddin.gg, an esports betting solution provider, to supply betting markets for customers. At the same time, the subsidiary of EEG, ggCircuit, entered into a partnership with Ghost Gaming and Skillshot Media to establish a first-of-its-kind Scholastic Esports Innovation Center within the Ghost Gaming HQ lab, with the goal of developing technology to match the needs of school esports programs.

“Overall, we believe the Company-wide initiatives we have undertaken this year will place us in a stronger financial position, and at the forefront of the rapidly growing esports wagering market which is poised to grow significantly by 2025. Moreover, the addition of Oddin.gg’s iFrame supports the Company’s global expansion strategies, given Oddin’s established international presence. As a result, I could not be more excited by the outlook for our business,” concluded Igelman.

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