GMBL - Esports Entertainment Group slides 27% after consensus miss: Q2 Earnings

Esports Entertainment Group (NASDAQ:GMBL) stock is down 27% in premarket trading after the company reported miss on both lines in its second quarter earnings results. Revenue of $14.5M (+514.4% Y/Y) misses consensus by $6.51M. Gross profit of $8M, down 19.5% sequentially.  Gross margin of 55.2% compared to 60.7% in 1Q22. Non-GAAP adjusted EBITDA loss of $6.8M, compared to an adjusted EBITDA loss of $4.3M in 1Q22.   GAAP EPS of -$1.53 misses by $1.16. Despite the omicron-led delay in LANDuel launch and the opening of company's Helix esports center in California, CEO Grant Johnson explained challenges faced during the quarter: "First, a significant change in the Netherlands regulatory environment led us to make the strategic decision to exit the country's iGaming and online sports betting market at the start of the quarter. Second, our online sportsbook business in Europe experienced historically low hold which, while in-line with the broader European and U.S. market, resulted in a material decline in sportsbook revenue."

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Esports Entertainment Group slides 27% after consensus miss: Q2 Earnings