With C$7.2 million in cash and 49 percent consolidated gross margins, the esports media company reported solid revenues for the quarter.
Enthusiast Gaming (TSXV:EGLX), an esports media company announced C$6.3 million in revenues over the quarter, with media revenues accounting for 76 percent of the total generated. The company generated 49 percent gross operating margins, while proforma media revenues per user footed C$0.10.
As quoted in the press release:
Adrian Montgomery, CEO of Enthusiast Gaming commented, “I am pleased with our Q3 results with consolidated, pro forma revenue of $6.3 million in the quarter. We closed a transformational merger in the quarter between Enthusiast, Aquilini GameCo and Luminosity and we are focused on executing our growth strategy through investing in revenue optimization tools and monetization strategies to drive higher revenue per viewer and higher margins.” He continued, “It’s important for us to remain diligently focused on our growth strategy and continue improving on our execution. I am looking forward to a strong finish to the year.”
Third Quarter Financial and Operating Highlights
Pro forma consolidated revenue for the three-month period ended September 30, 2019 was $6.3 million. Media revenue accounted for 76% of the total, with Esports accounting for the balance.
Pro forma Media revenue per viewer was $0.10, while pro forma consolidated gross margin for the three-month period ended September 30, 2019 was 49%, with Media gross margin of 33%.
Cash on hand as at September 30, 2019 was $7.2 million, which does not account for an additional $17 million advanced to the Company subsequent to September 30, 2019, relating to the Secured Loan announced on August 8, 2019.