- Record full year revenue of $116.3M growing by 25% compared to 2021
- Recorded Adjusted EBITDA of $7.5M in 2022
- Launched Doctor Who: Lost in Time and Milk Farm
Tycoon
VANCOUVER, BC, March 31,
2023 /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, 2022. All amounts are
stated in Canadian dollars on an IFRS basis unless otherwise
indicated.
We were pleased with our strong finish to 2022 both with revenue
and Adjusted EBITDA rebounding strongly from Q3. The launch of
Star Trek: Lower Decks - The Badgey Directive
(September 2022), Milk Farm
Tycoon (February 2023) and
Doctor. Who: Lost in Time (March
2023) set us up for a strong 2023.
For 2023/24 we will have a tighter focus on large IP-driven
games with cult-like followings, which is where we have found the
most success. We will be investing in our winners as well as
betting smart about what is working in the new market
dynamics. The Company anticipates launching new games based
on various intellectual properties from recognized names in film,
television, toys, music and sports, as it continues to build and
expand its partnerships with leading studios around the world.
The strength of our GameKit platform continues to fuel our
growth as we launch more successful titles using this tool set.
Four of our seven unique titles have been launched in the past 18
months using this tech. Partners continue to clamour to get into
this program and as the GameKit product gets more and more
extensive, we will be able to embrace more of these
partnerships.
"With the recent award nominations and success of our releases,
in addition to a number of major IP and developer partnerships on
the horizon, we expect great things for ESGG. As fans first, we're
thrilled for these upcoming titles in large part because we know
they'll be fun to play," says Jason
Bailey, CEO of ESGG. "Moving forward, we will continue to
focus on our goal of providing creators the tools to successfully
deliver mobile gaming experiences that engage players every
day."
Three months and year ended December
31, 2022 Highlights:
- Q4 2022 revenue was $25.9
million.
- For the year ended December 31,
2022, revenue was $116.4
million, a 25% increase compared to the year ended
December 31, 2021.
- Q4 2022 Adjusted EBITDA was $2.5
million.
- For the full year, Adjusted EBITDA was $7.5 million.
- $9.6M was invested in new game
R&D and GameKit during 2022
- Cash for the Company at December 31,
2022 was $5.7 million compared
to $5.2 million at September 30, 2022.
- Cash flow from operations for 2022 was $10.0 million.
- Daily Active Users in Q4 were 277K (Q3 2022 – 298k). Average Revenue per Daily Active User was
$1.04 (Q3 2022 - $0.94).
- Launched Star Trek Lower Decks, Doctor Who, Milk Farm
Tycoon and Bud Farm Munchie Match.
- On August 11, 2022, the Company
announced its intention to buy back up to 4,076,819 shares under
its NCIB. Through March 30, 2023, the
Company purchased 386,927 shares, and intends to purchase more
shares under the NCIB until its expiry.
- Truly Social Games (TSG) filed claims against the Company with
respect to a membership purchase agreement and publishing
agreements between the Company and TSG. The Company considers these
claims to be meritless, vague, and unsubstantiated, and has filed
responses and a counterclaim against TSG. The Company will defend
such claims vigorously.
We note that the 2021 year end results were restated as a result
of adjustments/recharacterizations made regarding external game
development costs and IP payments, as well as the Company's
investment in Truly Social Games. The restatements caused net
and comprehensive loss for 2021 to be restated as $2.8 million (previously $1.9 million), but the restatements had no effect
on the Company's cash or revenue for the 2021 fiscal year, and in
fact improved the Company's EBITDA for that year.
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, 2022 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.
Webcast and Conference Call
Information
The Company will hold a conference call to discuss its
performance with the investment community at 2:00 p.m. PT today. Related earnings release
materials can be found on East Side Games Group website at
https://eastsidegamesgroup.com/investors/financial-information/.
Webcast and Conference Call Details:
Webcast URL:
https://viavid.webcasts.com/starthere.jsp?ei=1602282&tp_key=62018c4454
Toll Free Dial-In Number: +1 (888)
396-8049
Local Dial-In Number:
+1 (416) 764-8646
Conference ID:
83612382
A replay will be available by dialing +1 (877) 674-7070 or +1
(416) 764-8692 and entering passcode 612382#.
ABOUT EAST SIDE GAMES
GROUP
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, Doctor Who: Lost in Time,
RuPaul's Drag Race Superstar, Trailer Park Boys Grea$y Money, Bud
Farm Idle Tycoon and Cheech & Chong Bud Farm.
We are headquartered in Vancouver,
Canada and our games are available worldwide on the App
Store and Google Play. For further information, please
visit: www.eastsidegamesgroup.com and join our online
communities at LinkedIn, Twitter, Facebook, and
Instagram.
Additional information about the Company continues to be
available under its legal name, East Side Games Group Inc., at
www.sedar.com.
Forward-looking
Information
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.
For Further Information
Media Inquiries: media@eastsidegamesgroup.com
Investor Relations: IR@eastsidegamesgroup.com
3104 – 1055 Dunsmuir Street, Vancouver
BC V7X 1G4
SOURCE East Side Games Group Inc.