ESE:CC - Small Cap Gaming Company ESE Entertainment (TSXV: ESE) Beats Expectations with 417% Annual Revenue Increase and Record Gross Profit
(NewsDirect)
By Kenneth Adams, Benzinga
Small-cap gamingtechnology company ESE Entertainment Inc. (TSXV: ESE)(OTCQX: ENTEF)has published its audited annual consolidated financial statements forthe 2022 year. The report reveals significant financial growth inrevenue and gross profit for the period, demonstrating thecompany's continued success in the fast growing video gametechnology sector.
For the three months ended October 31, 2022, the companyreported revenue of $19.86 million, representing an impressive 218%increase from the same period in 2021. Meanwhile, the company'sannual consolidated revenue for fiscal 2022 was $58.82 million, anoutstanding increase of 417% from fiscal 2021.
ESE also reported anannual gross profit in Fiscal 2022 of $7.70 million, a significant569% increase from the previous year's gross profit of $1.15million. Furthermore,it showed a decrease in its adjusted EBITDA loss,from $3.50 million in fiscal 2021 to a much-improved $0.18 million infiscal 2022.
Thecompany currently trades at an approximately $30 million market cap onthe Canadian and US markets.
In Q4 2022, ESE Entertainment also appointed AndreaLieuwen as the company's Chief Financial Officer. Ms.Lieuwen's extensive experience includes leadership and operationsof gaming properties, contributing to a market capitalization of over$3 billion and operating 25 properties across Canada at the GreatCanadian Gaming Corporation. ESE also entered into a $5 millioncontract to deliver technology and user acquisition services to aEuropean video game developer and publisher.
"After a period ofsignificant acquisition growth, I am very excited that ESE is now wellpositioned to focus all efforts on organic growth opportunities. Withthe successful integration of our portfolio assets, we have set afundamental base for the company. Our core focus is on profitabilityand delivering shareholder value, and I look forward to leadingESE's financial strategy to ensure that we are financially soundand positioned for sustained success." said Andrea Lieuwen,ESE's Chief Financial Officer .
"We are thrilled to announce our 2022audited financial results, which showcase our strongest performance todate with record-breaking revenue, gross profit, and improvement inadjusted EBITDA." said Konrad Wasiela, CEO of ESE.
"We set out manycorporate goals in 2022, and I am proud to say we accomplished everysingle one of them. This is a testament to the relentless dedicationand hard work from our world class team. Further, our financialdiscipline, technology, strategic investments and intellectualproperty will help us to further hone our operations and set thefoundation for strong, sustainable organic growth goingforward.”
Witha recent analyst price target of $0.95 per share, ESE Entertainment isa company worth keeping an eye on. Their financial results andoperational highlights in 2022 demonstrate the potential for strong,sustainable organic growth in the future. We will continue to monitorthe company's performance and look forward to seeing theirgrowth.
To readmore, see the Company's profile on SEDAR at www.sedar.com .
All amounts are inCanadian dollars.
This article was originally published on Benzinga here .
Thecompany was founded in 2019 by Konrad Wasiela, a former professionalfootball player. Today, ESE has grown to consist of multiple assetsand world-class operators in the gaming and esports industries. Ourcore expertise is in bringing new users and players to video gamedevelopers, and increasing game publicity. Through our process andtechnology, we become a key part of your team in order to make yourgame a success.
This news release contains certainstatements that may constitute forward-looking information underapplicable securities laws. All statements, other than those ofhistorical fact, which address activities, events, outcomes, results,developments, performance or achievements that ESE anticipates orexpects may or will occur in the future (in whole or in part) shouldbe considered forward-looking information. Such information mayinvolve, but is not limited to, statements with respect to: thedetails of the W3GA event, and the success and impact thereof; and thegrowth of, and opportunities in, the web3 gaming market. Often, butnot always, forward-looking information can be identified by the useof 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, orstatements formed in the future tense or indicating that certainactions, events or results “may”, “could”, “would”,“might” or “will” (or other variations of the forgoing) betaken, occur, be achieved, or come to pass. Forward-lookinginformation is based on currently available competitive, financial,and economic data and operating plans, strategies or beliefs as of thedate of this news release, but involve known and unknown risks,uncertainties, assumptions and other factors that may cause the actualresults, performance or achievements of ESE to be materially differentfrom any future results, performance or achievements expressed orimplied by the forward-looking information. Such factors may be basedon information currently available to ESE, including informationobtained from third-party industry analysts and other third-partysources, and are based on management’s current expectations orbeliefs regarding future growth, results of operations, future capital(including the amount, nature and sources of funding thereof) andexpenditures. Any and all forward-looking information contained inthis press release is expressly qualified by this cautionarystatement. Trading in the securities of ESE should be consideredhighly speculative.
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