- Total revenue of $9.67 million in Q1 Fiscal 2022, an increase of 804% over Q1 Fiscal 2021
- Gross margin of $5.90 million (61%) in Q1 Fiscal 2022, as compared to $0.54 million (51%) in Q1 Fiscal 2021
- Positive cash flow from operations of $0.5 million in Q1 Fiscal 2022, as compared to negative cash flow of $2.2 million in Q1 Fiscal 2021
- Company to host investor webinar on Wednesday, June 1, 2022 at 1 PM EST
FansUnite Entertainment Inc. (OTCQX: FUNFF) (CSE: FANS) (“FansUnite” or the “Company”) announced that it has filed its consolidated interim financial statements and associated management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2022. All amounts are stated in Canadian dollars unless otherwise indicated.
Investor Webinar
FansUnite will be hosting an investor webinar on Wednesday, June 1, 2022 at 1 PM EST to discuss the Company’s Q1 Fiscal 2022 financial results and growth outlook for the remainder of 2022.
Click the link below to register.
https://us02web.zoom.us/webinar/register/WN_g9kswoVFQYi6GVJD71qQ0A
First Quarter Fiscal 2022 Financial Highlights:
- Total revenue of $9.67 million in Q1 Fiscal 2022, an increase of approximately 804% as compared to $1.07 million over the same period in the last fiscal year
- Gross margin of $5.90 million (61%) in Q1 Fiscal 2022, as compared to $0.54 million (51%) over the same period in the last fiscal year
- Positive cash flow from operations of $0.5 million in Q1 Fiscal 2022, as compared to negative cash flow of $2.2 million in Q1 Fiscal 2021
- Net loss of $9.17 million in Q1 Fiscal 2022 which includes non-cash expenses of $10.31 million, as compared to $2.49 million over the same period in the last fiscal year, which includes non-cash expenses of $0.72 million
- As of March 31, 2022, the Company had net working capital of $13.6 million compared to $14.9 million as of December 31, 2021.
First Quarter Fiscal 2022 Operational Highlights:
- On January 4, 2022, the Company appointed Dennis Williams, who previously served as a Payments Senior Specialist at the British Columbia Lottery Corporation, the only licensed provider of casinos, lottery products, and online gambling in British Columbia, as FansUnite’s Payments Director
- On January 10, 2022, the Company’s American Affiliate (“AmAff”) division received approval to provide customer acquisition services in New York, the largest online sports betting market in the U.S.
- On January 31, 2022, Money Line Sports launched a new online sportsbook, moneylinesportsbook.com in European and overseas markets on the Company’s Chameleon iGaming Platform
- On February 2, 2022, the Company’s AmAff division entered Louisiana’s online sports betting market
- On February 7, 2022, the Company reported that its subsidiary McBookie Ltd has demonstrated significant year-over-year growth by increasing its gross win by 54% in 2021, as well as producing outstanding results in January 2022 – a combined gross win of $465,000 across its sportsbook and casino channels
- On February 17, 2022, the Company reported that its AmAff division set new company records during the Super Bowl LVI weekend by averaging more than one new depositing customer per minute. AmAff registered over 6500 new depositing customers for its sportsbook partners, resulting in US$1.75 million in first-time deposits
- On March 7, 2022, the Company announced that it received a Gaming Related Supplier – Manufacturer license from the Alcohol and Gaming Commission of Ontario, allowing FansUnite to become a fully registered supplier of sports betting and internet gaming in Ontario, effective April 4, 2022
- On March 12, 2022, the Company launched the VamosGG Cup, a CS:GO esports tournament
- On March 17, 2022, the Company’s AmAff division received approval to provide customer acquisition services in Maryland’s sports betting market
- On March 22, 2022, the Company announced that it has been shortlisted as a finalist for the following five award categories in the 2022 EGR North America Awards:
- FansUnite: Full-service platform provider
- American Affiliate: Affiliate of the year
- Betting Hero: Acquisition and retention partner, Customer onboarding partner, and Diversity & inclusion model
- On March 31, 2022, the Company reported during the first two weekends of the 2022 NCAA ‘March Madness’ Men’s Basketball Tournament, its AmAff division generated $1.88 million in revenue from its betting affiliate network, operating at over 30% gross margins
Subsequent Events to First Quarter Fiscal 2022:
- On April 19, 2022, the Company announced that it has signed a Memorandum of Understanding (“MOU”) to enter into a long-term licensing agreement with Lovell Brothers Limited, owners of Dragon Bet, to launch a new online sports betting portal, www.dragonbet.co.uk, on the Chameleon iGaming platform
“We began this year with solid growth to our top line despite the headwinds faced in the global economy,” said Scott Burton, CEO of FansUnite. “Our operations have scaled significantly over the last six months. During Q1 2022, we saw revenue reach $9.67 million, an increase of over 800% compared to the same period last fiscal year, while achieving a cash flow positive quarter for the first time in the company’s history, a significant milestone in the current market. Having substantial working capital will allow us to continue growing without needing to access additional capital.”
Scott added, “Our revenue growth was supported by positive progress across all of our business units. Newly acquired American Affiliate continued to enter new U.S. betting markets and delivered outstanding results during one of the busiest quarters for North American sports while our B2B segment continues to gain traction with the launch of MoneyLine Sports. We carried this success into Q2 of Fiscal 2022, where we recently signed an MOU with a leading Welsh bookmaker and have several ongoing discussions to support additional brands globally.”
Certain information provided in this news release is extracted from the unaudited condensed consolidated interim financial statements (the “Financial Statements”) and Management’s Discussion & Analysis (“MD&A”) of the Company for the three months ended March 31, 2022 and should be read in conjunction with them. It is only in the context of the 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.
About FansUnite Entertainment Inc.
FansUnite is a global sports and entertainment company, focusing on technology related to regulated and lawful online gaming. FansUnite’s one-of-a-kind iGaming platform Chameleon offers operators a full suite of gaming solutions with a sports and esports focus geared for the next generation of online bettors and casino players. Along with providing B2B technology solutions, FansUnite operates multiple B2C brands, such as Scottish sportsbook McBookie and Brazilian esportsbook VamosGG, and produces casino style slot games under its Askott Games subsidiary. FansUnite is the parent company of North American-focused American Affiliate, which operates leading affiliate brands such as Betting Hero, Props.com, Wagers.com and BetPrep.
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