East Side Games Group Inc posts financial results for second quarter ended June 30, 2022, showing solid growth

East Side Games Group (TSX:EAGR, OTCQB:EAGRF) Inc (ESGG) has announced its financial results for the second quarter ended June 30, 2022, showing solid growth.

“Q2 was a solid quarter with 32% growth over the prior year. Total revenue for 2022 to date was $65.3 million up 43% year over year. Excluding one-time revenue items in the Q1 quarter, Q2 decreased approximately 15% from Q1 of this year, in line with industry trends. ‘RuPaul’s Drag Race Superstar’, which launched on October 25, 2021 and ‘The Office: Somehow We Manage’, which launched in late January of this year in partnership with Universal Games and Digital Platforms continue to perform” said Jason Bailey, CEO of ESGG in the results statement.

“Our core portfolio of active titles also performed over the quarter. These titles continued to be EBITDA drivers. This foundation is paying for the development of new titles, GameKit R&D, as well as operational cash flow,” added Bailey.

READ: East Side Games Group to proceed with normal course issuer bid

“Given the slate of titles we intend to launch in the second half of this year and early 2023, including super marquee titles Star Trek Lower Decks and Doctor Who we expect to lean in and invest heavily into growth which will result in lower near-term EBITDA, but sets us up for a spectacular 2023 and beyond,” Bailey noted.

Three and six months ended June 30, 2022, financial and corporate highlights:

  • Q2 2022 revenue was $29.7 million, a 32% increase versus Q2 2021 revenue of $22.5 million. For the six months ended June 30, 2022, revenue was $65.3 million, a 43% increase versus the six months ended June 30, 2021.
  • Q2 2022 Adjusted EBITDA was $0.6 million (Q2 2021 – $2.6 million) and year-to-date (YTD) Adjusted EBITDA was $3.6 million (YTD 2021 – $5.3 million).
  • Q2 2022 net income was $17.3 million (Q1 2022 – $0.7 million) and year-to-date net income was $17.9 million (YTD 2021 – $0.4 million). Net income for the three and six months ended June 30, 2022, was primarily due to the reversal of the contingent payment.
  • Cash for the company as of June 30, 2022, was $9.3 million compared to $9.2 million on December 31, 2021.
  • Daily Active Users in Q1 were 347,000 and Monthly Active Users were 1.35 million. Average Revenue per Daily Active User was $0.93.
  • During Q1 2022, the company expanded its operating credit facility from $3.5 million to $7.1 million increasing its overall credit facilities to $17.1 million.
  • On August 11, 2022, the company announced its intention to buy back up to 4,076,819 shares under its Normal Course Issuer Bid (NCIB)
  • During Q2 2022, the company added a $10 million acquisition line for which a portion can be used in its NCIB. As of June 30, 2022, the company had $0.3 million of debt.
  • Added four new genres to the Game Kit core offering, Merge, Match, Blitz and Master and have partnership development agreements for each.
  • Signed numerous, as yet unannounced Super MArquee IP agreements as well as multi-game development agreements with GameKit partners.
  • Soft Launched Star Trek Lower Decks, Doctor Who, Milk Farm Tycoon, Trailer Park Boys Merge, Bud Farm Munchie Match, and others.

East Side Games Group – formerly operating under the name LEAF Mobile Inc – is a leading free-to-play mobile game group. Through its proprietary Game Kit software platform, the company enables creators to successfully deliver memorable mobile gaming experiences that engage players everyday. 

It publishes a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, RuPaul’s Drag Race Superstar, Bud Farm Idle Tycoon, Cheech & Chong Bud Farm, It’s Always Sunny: The Gang Goes Mobile, Trailer Park Boys Greasy Money and other IP based and wholly owned properties.

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