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Enthusiast Gaming Reports Year-End 2021 Results

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Enthusiast Gaming Reports Year-End 2021 Results

 

Enthusiast Gaming Holdings Inc., an integrated gaming entertainment company, announced financial results for the year ended December 31, 2021.

2021 Financial Highlights

  • Revenue for 2021 was $167.4 million, representing a 130% increase from revenue for 2020 of $72.8 million
  • Gross profit for 2021 was $37.8 million, representing a 102% increase from gross profit for 2020 of $18.7 million
  • Direct sales in 2021 of $22.2 million, representing a 344% increase from direct sales in 2020 of $5.0 million. Direct sales are included in revenue
  • Paid subscribers as at December 31, 2021, of 220,000, representing an 80% increase from paid subscribers as at December 31, 2020, of 122,000

Q4 2021 Financial Highlights

  • Revenue for the three months ended December 31, 2021 (“Q4 2021”), of $56.9 million, representing a 34% increase from revenue for the three months ended December 31, 2020 (“Q4 2020”), of $42.5 million
  • Gross profit in Q4 2021 of $13.7 million, representing a 69% increase from gross profit in Q4 2020 of $8.1 million
  • Gross margin in Q4 2021 of 24.1%, representing a 500 basis point increase from gross margin in Q4 2020 of 19.1%
  • Direct sales in Q4 2021 of $8.8 million, representing a 167% increase from direct sales in Q4 2020 of $3.3 million. Direct sales are included in revenue

“Our momentum continues and we are pleased to confirm our record breaking results from Q4 2021,” commented Adrian Montgomery, CEO of Enthusiast Gaming. “We are seeing strong repeat business in direct sales, continued conversions of viewers into paying subscribers, and strength in our product offerings, particularly in Addicting Games and U.GG. We expect this momentum to carry into 2022 and beyond.”

“Our higher yield and higher margin revenue streams are expanding, with noticeable impacts to the income statement,” commented Alex Macdonald, CFO of Enthusiast Gaming. “Direct sales and subscription combined accounted for over 20% of revenue in Q4, helping push quarterly revenue to an all time high and gross margin to over 24%. We maintain a growth oriented position and outlook.”

Q4 Operational Highlights

  • Expansion of in-game purchasing opportunities and subscription offerings for multiple Addicting Games titles including Little Big Snake, TypeRacer, EV.IO, and mope.IO
  • Two new event series launched: Pocket Gamer Connects Digital NEXT, and Beyond Games
  • Record U.S. unique visitor traffic of 51.8 million recorded in December 2021 as measured by Comscore
  • Acquisition of League of Legends community U.GG, and expansion of the U.GG desktop app
  • Luminosity Gaming ranked number one esports team on Twitch according to a study conducted with Nielsen
  • Renewals or additional business with key partners including Proctor & Gamble, HBO Max, TikTok, Disney, ExitLag, G FUEL and Square Enix
  • New season of Rising Stars announced, co-created with e.l.f. Cosmetics (NYSE: ELF)

Organizational Updates

The Company also announced that due to her recent appointment as Chief Investment Officer of the California Public Employees’ Retirement System (CalPERS), Nicole Musicco was required to resign from the Board of Directors of the Company, effective March 25, 2022.

“I am thankful for my time on the Board of Enthusiast Gaming and am impressed with the trajectory of the Company,” said Nicole Musicco. “Adrian and the management team are highly capable and there is a strong vision in place. I look forward to watching the Company continue to grow.”

The Company wishes to thank Nicole for her service, and congratulates her on the appointment at CalPERS.

The Company also announced that Menashe Kestenbaum has transitioned out of the role of President to focus exclusively on strategy and governance as a member of the Board of Directors. As a continuing member of the Board, his experience will continue to help the Company towards achieving its growth objectives.

Other recent appointments at the Company include:

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  • Scotty Tidwell as Senior Vice President of Talent
  • Alex Gonzalez as Head of Luminosity Gaming

Certain information provided in this news release is extracted from financial statements and management’s discussion & analysis (“MD&A”) of the Company for the year ended December 31, 2021, 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 have been published on the Company’s profile on SEDAR and EDGAR.

All amounts are in Canadian dollars.

Compliance Updates

Zimpler Becomes Certified Payment Institution in Brazil, Strengthens Local Open Finance Ecosystem

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Zimpler Becomes Certified Payment Institution in Brazil, Strengthens Local Open Finance Ecosystem

 

Zimpler, a leading Swedish company in Pay-by-bank solutions, has become a certified Payment Institution (PI) in Brazil, authorized by the Central Bank. Now Zimpler is allowed to facilitate payments and other Open Finance ecosystem resources, streamlining the checkout process and reducing friction by allowing direct transactions without redirecting users to bank apps. This movement solidifies Zimpler’s plans and structure in Brazil.

“We are thrilled to receive this authorization from the Brazilian Central Bank. The recognition of Zimpler as a payment initiator reinforces our commitment to this local market, which offers a great opportunity for growth and value in a very dynamic and competitive environment,” said Johan Strand, CEO of Zimpler.

The authorization, which also allows Zimpler to act as an electronic money institution, strengthens the Open Finance ecosystem in Brazil, one of the most advanced in the world and which now welcomes the leading payments fintech from Sweden. Businesses looking to thrive in the country can now benefit from the Zimpler’s seamless payment experience, giving them a competitive edge in a dynamic and fast-moving market.

“This milestone showcases the strength of Swedish innovation and the mutual benefits that come from closer economic collaboration between Sweden and Brazil. Sweden has long been a leader in financial technology, and we are proud to see companies like Zimpler bring their experience and trusted solutions to contribute to Brazil’s dynamic digital economy,” said Andreas Rentner, Trade Commissioner and Country Manager of Business Sweden in Brazil.

“With our experience powering over 80% of Sweden’s population through Swish, we’re bringing the same proven technology and approach to Brazil through Pix, one of the most successful real-time payment systems in the world. We’re looking forward to helping businesses unlock the full potential of Open Finance in Brazil with seamless, secure payments that drive market growth,” Strand said.

The authorization by the Central Bank is another step in strengthening Zimpler’s foundation in Brazil, following the opening of its São Paulo office in 2022. The company remains focused on expanding its footprint and deepening its partnerships across key verticals such as iGaming, where it sees strong growth potential.

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AGS Interactive Makes Market Debut in Connecticut

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AGS Interactive Makes Market Debut in Connecticut

 

AGS Interactive has made its market debut in Connecticut, taking a selection of its best-performing games live in the Constitution State.

Local players in Connecticut can now enjoy three of AGS’ hit titles, with Capital Gains, Blazing Luck, and Dragon Fa initially available, all proven with both land-based and online players across North America.

AGS plans to roll out its full interactive portfolio, ensuring a steady cadence of new content for operators and players alike.

The launch represents AGS’ sixth regulated US market entry, further extending its footprint across the country and cementing its position as a supplier of beloved land-based classics with cunning interactive forward games.

Zoe Ebling, VP of Interactive at AGS, said: “Entering Connecticut is a huge milestone for us. It’s not just another market, it’s a testament to the momentum our interactive division has built across the US.

“By bringing Capital Gains, Blazing Luck, and Dragon Fa to Connecticut players, we’re giving them a taste of our best-in-class titles right out of the gate. Every new state launch is a fresh opportunity to show operators that AGS doesn’t just deliver games, we deliver experiences that resonate. We’ve seen firsthand how our land-based hits translate online, and we’re excited to roll out even more content throughout the year.”

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NFL Announces Partnership with ICRG

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NFL Announces Partnership with ICRG

 

The National Football League (NFL) announced a partnership with the International Center for Responsible Gaming (ICRG) to address growing concerns around gambling behaviors among college athletes and students. The NFL Foundation will contribute $600,000 over three years to support independent, peer-reviewed research being led by the ICRG that aims to explore the prevalence, risk factors, and impacts of gambling behaviors in these populations.

While initial studies have indicated that college athletes may be at higher risk for gambling problems, there remains a lack of comprehensive, current data on how college populations interact with online sports betting platforms. This NFL-ICRG initiative will empower independent researchers to explore a wide range of topics with the goal of informing data-driven prevention strategies, education, and policies aimed at reducing gambling-related harm. Grant applications will be peer-reviewed prior to the selection of the final recipient by the ICRG Independent Scientific Advisory Board.

Additionally, the NFL will fund an update to the ICRG’s “Talking with Children About Gambling” educational resources to equip parents, coaches, and educators with practical guidance to help prevent youth gambling exposure before college. Educational materials will be widely available online and distributed to schools, community sports organizations, and youth programs nationwide.

“We’re proud to partner with the ICRG to advance research that can drive meaningful solutions and address a critical gap in the understanding of gambling behaviors among college athletes and students. This initiative reflects our ongoing commitment to promoting responsible gambling and fostering a safe and supportive environment for athletes, fans, and communities,” said Anna Isaacson, NFL senior vice president of social responsibility.

“The NFL has once again demonstrated its commitment to player and fan protection by supporting this critical research targeting young adults. The NFL and ICRG together will make a meaningful contribution to understanding and implementing policies and programs that support a safer gambling environment,” said Arthur Paikowsky, president of ICRG.

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