Esports Entertainment Group (EEG), has reported revenue of $222K for the three months ending 30 September 2020. 

The results, which are the first to be impacted since EEG’s acquisition of Argyll Entertainment earlier this year, also show operating expenses have snowballed to $3.7M – up from just $700K in the same period last year – with the marked increase attributed to growing payroll, stock compensation, marketing, legal, and professional service fees. 

Overall, the period saw a net loss of $1.8M, with the company’s total assets valued at $10.4M at the close of September. 

In October, EEG saw a noticeable “uptick” in business, seeing a total handle of over $16M, and revenue breaking $600K for the month. The company is now estimating the fiscal year will see revenue amount to $13M, growing to $25M the following year – generated mainly from its Argyll and VIE.gg platforms.

Reflecting on the results Esports Entertainment Group CEO, Grant Johnson, said:

“We have achieved many significant milestones since uplisting to the NASDAQ in April.The COVID-19 pandemic has absolutely accelerated the rapid growth of esports leading to mainstream broadcasts to national TV audiences on ESPN and Fox.

“These trends helped us set new record audience viewing stats with our partner Allied Esports for the globally recognized Legend Series, just one of many accomplishments during the quarter.

“We believe the successes achieved this year provide an extremely strong foundation for long-term growth while offering investors a true pure play opportunity in the burgeoning world of global esports.”

The period also saw EEG enter an agreement to acquire Helix eSports and ggCircuit for $43M, and acquire the assets of FLIP Sports. Additionally, EEG extended its partnership with esports organisation Dignitas, which is owned by Harris Blitzer Sports and Entertainment, securing naming rights to its popular CS:GO team. 

AYO.NEWS says:

EEG has been spending big to scale its presence over the last few months, so it’s not surprising to see results like these. The real test is going to be what happens over the next year or so. Will EEG’s strategy of rapidly building a comprehensive gambling offering through numerous early acquisitions, while increasing brand visibility through high-profile partnerships like those with Allied Esports, Dignitas, MLB’s Philadelphia Union, NHL’s LA Kings, and MLS’ LA Galaxy, pay off?

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