ESE ENTERTAINMENT REPORTS THIRD QUARTER 2023 RESULTS
VANCOUVER, BC, September 29, 2023 – ESE Entertainment Inc. (“ESE” or the “Company”) (TSXV: ESE) (OTCQX: ENTEF), a gaming and esports company that provides a range of services to leading video game developers and publishers, is pleased to announce that it has filed its unaudited condensed interim consolidated financial statements (the “Financial Statements”) and related management’s discussion and analysis (the “MD&A”) for the three months ended July 31, 2023 (“Q3 2023”) the highlights of which are presented in this news release. The Financial Statements and MD&A are available on www.sedar.com and on the Company’s website.
Q3 2023 Financial Highlights:
- Total Revenue of $11.72 million (including discontinued operations)
- Gross Profit of $1.63 million (from discontinued operations)
- Loss Per Share improvement to $0.02, compared to $0.13 in Q3 2022
- Total assets as at July 31, 2023 of $15.25 million
“The Third Quarter was dynamic and critical in ESE’s trajectory toward long-term success. We successfully executed the sale of 70% of GameAddik for $9.1 million – our largest non-dilutive cash injection since ESE’s inception. The cash has allowed us to eliminate our secured debt, clean up our overall balance sheet, and position us for future growth. Our sustained momentum, evidenced by our consistent execution quarter-over-quarter, fuels our enthusiasm as we look forward to a promising year ahead.” stated Konrad Wasiela, CEO of ESE.
“With ESE’s improved balance sheet and strategic asset management, we are setting a solid foundation for forthcoming fiscal growth. Our focus remains on operational efficiencies and prudent cost management, underscoring our commitment to long-term financial stability.” stated Andrea Hayward, CFO of ESE.
Q3 2023 Operational Highlights:
- In May 2023, ESE Successfully Produced 18 Days of Broadcast for LEC 2023 Spring Season, Garnering 3 Million Views and 1.2 Million Hours Watched.
- In July 2023, ESE announced that Samsung became the title partner ESE Entertainment’s Gaming Tournament, Ultraliga.
- In July 2023, ESE announced that automotive company Kia, became an official sponsor of ESE Entertainment’s Gaming Tournament, Ultraliga.
- In July 2023, ESE announced that it produced and distributed the Championship Tournament for Riot Games, Teamfight Tactics.
Highlighted Subsequent Events:
- Subsequent to July 31, 2023, in August 2023, the Company completed the sale of 70% of the shares of the Company’s wholly-owned subsidiary, GameAddik for an aggregate purchase price of $9,100,000 in cash, subject to customary adjustments.
- The remaining 30% of GameAddik has been retained by the Company as an asset.
- Subsequent to July 31, 2023, the Company repaid $2,192,889 of the principal amount of the convertible notes and promissory notes.
The financial and operating results discussed in this news release are based on the Financial Statements and MD&A, which were released on September 29, 2023. 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 will be published under the Company’s profile on SEDAR at www.sedar.com.
All amounts are in Canadian dollars.
ESE Entertainment Inc.
Chief Executive Officer and Director
+1 (437) 826-4012
About ESE Entertainment Inc.
ESE is a global technology company focused on gaming and esports. The Company provides a range of services to leading video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally. ESE also operates its own ecommerce channels, esports teams, and gaming leagues. | www.esegaming.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that ESE anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, statements with respect to: the Company’s ability to achieve increased profitability and high gross margins; the completion of the acquisition of Frenzy and Digital Motorsports and the consideration payable thereunder; the Company’s plans to focus on its core intellectual property and technology offering, GameAddik; the Company establishing long term sustainability; and the Company delivering value to its shareholders. Often, but not always, forward-looking information can be identified by the use of 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, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of ESE to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to ESE, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of ESE should be considered highly speculative.
This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about ESE’s prospective results of operations and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraph. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about ESE’s future business operations. ESE disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.
This press release includes references to adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and is defined by the Company as net income or loss before income taxes, depreciation, commissions, finder’s fees and stamp duty for acquisitions, share-based payments, interest, impairment of assets, accretion, and foreign exchange gain or loss. We believe that adjusted EBITDA is a useful measure of financial performance because it provides an indication of the Company’s ability to capitalize on growth opportunities in a cost-effective manner, finance its ongoing operations and service its financial obligations.
This non-IFRS financial measure is not an earnings or cash flow measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. Our method of calculating such a financial measure may differ from the methods used by other issuers and, accordingly, our definition of this non-IFRS financial measure may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ESE Entertainment Inc.
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