Q2 revenue of $29.7M, an
increase of 32% over the same period last year
Announced Normal Course Issuer Bid for up to
4.1 million shares
VANCOUVER, BC, Aug. 11,
2022 /CNW/ - East Side Games Group (TSX: EAGR)
(OTC: EAGRF) ("ESGG" or the "Company"), today
announced financial results for the second quarter ended
June 30, 2022. All amounts are stated
in Canadian dollars on an IFRS basis unless otherwise
indicated.
"Q2 was a solid quarter with 32% growth over the prior year.
Total revenue for 2022 to date was $65.3M, 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.
"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." Said Mr. Bailey, "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".
"Today we also announced a share buy-back program as the board
of directors and I believe that the market price of the Company's
common shares does not reflect the inherent value of the Company",
said Mr. Bailey.
Three and six months ended June 30,
2022 Highlights:
- Q2 2022 revenue was $29.7
million, a 32% increase vs Q2 2021 revenue of $22.5 million. For the six months ended
June 30, 2022, revenue was
$65.3 million, a 43% increase vs the
six months ended June 30, 2021.
- Cash for the Company at June 30,
2022 was $9.3 million compared
to $9.2 million at December 31, 2021.
- Daily Active Users in Q1 were 347K and Monthly Active Users were 1.35M. Average Revenue per Daily Active User was
$0.93.
- The 2022 Earnout Milestone was achieved and paid in the first
quarter of 2022 as $10 million in
cash and $10 million in shares as per
the Share Purchase Agreement. The 2023 Earnout Milestone of
$20 million, previously accrued, was
reversed during Q2 2022 due to uncertainty in achieving the
$150 million revenue target.
- On August 11, 2022, the Company
announced its intention to buy back up to 4,076,819 shares under
its NCIB.
- 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.
During Q2 2022, the Company added a $10
million acquisition line for which a portion can be used in
its NCIB. At June 30, 2022, the
Company had $0.3 Million in
debt.
- Q2 2022 Adjusted EBITDA was $0.6
million (Q2 2021 - $2.6
million) and year to date 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.
- 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.
Certain information provided in this news release is extracted
from the consolidated financial statements (the "Financial
Statements") and Management's Discussion & Analysis
("MD&A") of the Company for the three and six months ended
June 30, 2022 and should be read in
conjunction with them. It is only in the context of the fulsome
information and disclosures contained in the Financial Statements
and MD&A that an investor can properly analyze this
information. The Financial Statements and MD&A can be found
under the Company's profile on SEDAR and EDGAR.
Webcast and Conference Call
Information
The Company will hold a conference call to discuss its
performance with the investment community at 2:00 p.m. PT today. Related earnings release
materials can be found on East Side Games Group website at
https://eastsidegamesgroup.com/investors/financial-information/.
Webcast and Conference Call
Details:
Webcast URL: https://app.webinar.net/Xy9WDqkl1O6
Toll Free Dial-In Number: +1
(888) 440-2009
International Dial-In Number: +1 (438) 803-0546
Conference
ID:
8631585
A replay will be available starting at 6:30 a.m. PT August 12,
2022 until September 11, 2022
by dialing +1 (800) 770-2030 or +1 (647) 362-9199 and entering the
conference ID 8631585.
ABOUT EAST SIDE GAMES
GROUP
East Side Games Group (formerly operating under the name "LEAF
Mobile Inc.") is a leading free-to-play mobile game group. Through
our proprietary Game Kit software platform, we enable creators to
successfully deliver memorable mobile gaming experiences that
engage players everyday. We publish 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.
Additional information about the Company continues to be
available under its legal name, LEAF Mobile Inc., at
www.sedar.com.
Forward-looking
Information
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the proposed transactions described herein. Forward-looking
statements consist of statements that are not purely historical,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Such statements are subject to
risks and uncertainties that may cause actual results, performance
or developments to differ materially from those contained in the
statements. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if
they do occur, what benefits the Company will obtain from them.
These forward-looking statements reflect management's current views
and are based on certain expectations, estimates and assumptions
which may prove to be incorrect. A number of risks and
uncertainties could cause our actual results to differ materially
from those expressed or implied by the forward-looking statements,
including factors beyond the Company's control. These
forward-looking statements are made as of the date of this news
release.
SOURCE East Side Games Group