- Announces highest revenue generating quarter with $2.8 million in revenue compared to $659 thousand in 2017
- YTD revenue of $7.9 million representing a 625% increase over the same period in 2017
- Completed seven strategic acquisitions YTD, contributing significant user and revenue growth
TORONTO, Nov. 27, 2018 (GLOBE NEWSWIRE) — Enthusiast Gaming Holdings Inc. (“Enthusiast” or the “Company”) (TSXV: EGLX), a digital media company building the largest community of authentic gamers, today, reported its unaudited financial results for the three and nine months ended September 30, 2018.
Enthusiast is pleased to report a significant increase in revenue as compared to the same period in 2017. Total revenue in Q3 2018 increased to $2,818,337 compared to $659,333, the same period in 2017 or an increase of 327%. For the nine months ended September 30, 2018, revenues increased to $7,387,850 as compared to $1,018,770 for the nine months ended September 30, 2017. The increase in revenues in 2018 is primarily as a result of Enthusiast Gaming executing on its growth strategy through a combination of organic growth and strategic acquisitions. There was a significant increase in the number of websites joining the network of which the Company monetizes. Enthusiast also acquired the assets associated with numerous online websites already on the platform, enabling the Company to capitalize on 100% of the revenues generated by the websites. Both factors support the significant growth in revenue.
Menashe Kestenbaum, CEO of Enthusiast Gaming commented, “The last quarter was significant for Enthusiast. Not only did we continue building operational momentum while achieving corporate milestones, like closing the RTO and listing on the Toronto Venture Stock Exchange, we were able to continue delivering on our growth strategy, which is evident in the increase in revenue during third quarter.” He continued, “typically in our business, the fourth quarter is the largest revenue generating quarter, and we are well positioned to deliver significant growth and outperform our annual revenue projections of $10M.”
Third Quarter 2018 and Recent Company Highlights
- Completion of the Business Transaction (“RTO”) with Tova Ventures II Inc. and concurrent private placement. In connection with the Transaction, the Company consolidated its common shares on the basis of one post-consolidation share for each 4.2 pre-consolidation shares (the “Consolidation”) and changed its name to “Enthusiast Gaming Holdings Inc.”
- On October 4, 2018, the Company listed on the Toronto Venture Stock Exchange (“TSXV”) under the symbol EGLX.
- On June 22, 2018, the Company acquired all the assets of “Gameumentary”, a video games journalism outlet that produces video game documentaries.
- On July 3 2018, Enthusiast acquired Escapist Magazine (“Escapist”), and brought back founding Editor, Russ Pitts, as Editor-in-Chief. Escapist is a leading online magazine covering mostly video games as well as movies, comics, TV, and more.
- On July 6, 2018, Enthusiast acquired the IncGamers Brand (“IncGamers”), including PC Invasion and Diablo and purchased all related assets. IncGamers is a leading online video game news, analyst, opinion, and overall entertainment venue for gamers.
- Completion of an oversubscribed, non-brokered private placement of convertible debenture units for total gross proceeds of $9,000,000 on November 8, 2018
- On November 14, 2018, Enthusiast acquired the assets of Operation Sports LLC (“Operation Sports”), one of the largest online sports video gaming news and community forums.
- Enthusiast Gaming Live Expo, EGLX, was held on October 26-28 at the Metro Toronto Convention Centre. EGLX is the largest video game expo in Canada. Over the three events, over 30,000 people attended, and the expo was sold out and at capacity on Saturday.
Financial Highlights
- For the three months ended September 30, 2018, revenue increased to $2.8 million from $659 thousand in 2017
- For the nine months ended September 30, 2018, revenues amounted to $7,387,850 as compared to $1,018,770 for the nine months ended September 30, 2017
- Cash losses for the 9 month period were $4,011,748, largely attributable to expenses associated with the RTO and cost of the acquisitions
- As of September 30, 2018, the Company had $7.23 million in cash and cash equivalents, not including the $9 million raised through the issuance of convertible debentures in November 2018.
About Enthusiast
Founded in 2014, Enthusiast is the fastest-growing online community of video gamers. Through the Company’s unique acquisition strategy, it has a platform of over 80 owned and affiliated websites and currently reaches over 75 million monthly visitors with its unique and curated content. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (www.eglx.ca). Over 30,000 people attended EGLX in October 2018. For more information on the Company, visit www.enthusiastgaming.com.
CONTACT INFORMATION:
Investor Relations:
Julia Becker, Head of Investor Relations & Marketing
jbecker@enthusiastgaming.com
(604)785.0850
Eric Bernofsky, COO & SVP Finance
eric@enthusiastgaming.com
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.
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.
The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.