East Side Games Group Reports Fourth Quarter 2023 Financial Results
- Revenue of $20.6M in Q4 2023 and $87M for the full year
- A-EBITDA of $4.5M in Q4 2023 and $12.8M for the full year
- Q3 Strategic Realignment to optimize profitability and cashflow realized
VANCOUVER, BC, April 1st, 2024 /CNW/ - East Side Games Group (TSX: EAGR) (OTC: EAGRF) ("ESGG" or the "Company"), today announced financial results for the fourth quarter and year ended December 31, 2023. All amounts are stated in Canadian dollars on an IFRS basis unless otherwise indicated.
The Company is pleased to announce a strong finish to 2023, marking the most profitable quarter in its history and the fifth consecutive quarter exceeding $2.5 million in adjusted EBITDA. The Company's focused efforts on profitability throughout the past year, coupled with strategic realignment initiatives, culminated in a robust conclusion to the year. In the fourth quarter, the Company achieved revenue of $20.6 million and adjusted EBITDA of $4.5 million, reflecting a 22% margin.
East Side Games Group reaffirms its commitment to delivering captivating IP-driven games tailored to passionate audiences while collaborating with renowned brands in Movies, Television, Toys, Music, and Sports. In 2024, East Side Games Group proudly presents a robust lineup of game launches, starting with AEW: Rise to the Top (January 2024). In Q2 2024, anticipate the release of three games, each based on iconic brands. The company also has other titles in active development that utilize new and existing IP partnerships with 2024 and 2025 launch targets.
This year witnessed further development of the new Matchkit framework, with the first game using the framework, Bud Farm: Munchie Match, delivering the strongest retention metrics in the company's thirteen-year history. ESGG will continue developing the Matchkit to scale and bring the same revolution to the Match genre as they did to the Idle genre. They have already soft-launched their second match title, with several more in active development.
ESGG continues to experience growth due to the strength of its GameKit framework. They currently have seven LiveOps titles that generate 90% of their revenue, with no single title comprising more than 20%. This diverse position sets them apart from many mobile game companies, as most rely on a single title to drive 90% of their revenue.
"2023 was a difficult year for mobile games and for the tech industry as a whole. It was a year that saw more than two hundred thousand jobs eliminated, hundreds of companies failing, and billions in market cap evaporating. Despite these headwinds and through the resilience of our incredible leadership team, ESGG has been able to keep revenues relatively flat while incrementally increasing profitability and growing our cash reserves. No small feat, and something I am very proud of." said Jason Bailey, CEO of ESGG. "Moving forward to 2024, we are seeing markets recover, opportunities present themselves again and the industry quickly recovering. Great things lie ahead for this team and the technological foundation we have built. We remain more committed than ever to our goal of providing creators tools to deliver mobile gaming experiences that engage players every day."
- For the quarter ended December 31st, 2023, revenue was $20.6 million.
- Q4 2023 Adjusted EBITDA was $4.5 million, a margin of 22%. The 5th consecutive quarter over $2.5 million.
- Net Cash for the Company at December 31, 2023 was $5.2 million compared to $3.6 million at Q3 2023, a 44% increase.
- The restructure announced in late August 2023 will result in approximately $5.0 million in annualized operating expense reductions with minimal expected impact on overall revenues. The effect of the reductions completed in August were realized for the full quarter starting Q4 2023.
- Daily Active Users in Q4 were 248K. Average Revenue per Daily Active User was $0.91.
- On November 14, 2023, the Company announced a renewal of its Normal Course Issuer Bid ("NCIB") authorizing the Company to purchase 4,076,819 of its shares. Through December 31, 2023, the Company purchased 951,979 shares at an average price of $0.82. The company continues to buy back stock as restrictions allow.
Certain information provided in this news release is extracted from the consolidated financial statements (the "Financial Statements") and Management's Discussion & Analysis ("MD&A") of the Company for the year ended December 31, 2023, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company's profile on SEDAR and EDGAR.
The Company will hold a conference call to discuss its performance with the investment community at 9:00am PT April 2nd, 2024. Related earnings release materials can be found on East Side Games Group website at
https://eastsidegamesgroup.com/investors/financial-information/.
Webcast URL: https://onlinexperiences.com/Launch/QReg/ShowUUID=45B421E8-6344-4875-A894-C12D436717FC&LangLocaleID=1033
Toll Free Dial-In Number: +1 (800) 717-1738
Local Dial-In Number: +1 (289) 514-5100
Conference ID: 62568
A replay will be available by dialing +1 (888) 660-6264 or +1 (289) 819-1325 and entering passcode 62568 #.
East Side Games Group is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty. Our studio groups entrepreneurial culture is anchored in creativity, execution, and growth through licensing of our proprietary Game Kit software platform that enables professional game developers to greatly increase the efficiency and effectiveness of game creation in addition to organic growth through a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, Star Trek: Lower Decks – The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who: Lost in Time, RuPaul's Drag Race Superstar, AEW: Rise to The Top, Cheech and Chong Bud Farm, and Trailer Park Boys: Grea$y Money.
We are headquartered in Vancouver, Canada and our games are available worldwide on the App Store and Google Play. Additional information about the Company continues to be available under its legal name, East Side Games Group Inc., at www.sedar.com.
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.
SOURCE East Side Games Group Inc.
Media Inquiries: [email protected]; Investor Relations: [email protected]; 3104 - 1055 Dunsmuir Street, Vancouver BC V7X 1G4
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