East Side Games Group Reports Second Quarter 2024 Financial Results
- Revenue of $20.5M in Q2 2024 and $41.3M Year to Date
- A-EBITDA of $2.5M in Q2 2024 and $6.6M Year to Date
- Cheech and Chong's: Kush Kingdom launched worldwide
- POWER RANGERS: MIGHTY FORCE soft-launched in select territories
VANCOUVER, BC, Aug. 13, 2024 /CNW/ - East Side Games Group (TSX: EAGR) (OTC: EAGRF) ("ESGG" or the "Company"), today announced financial results for the second quarter of 2024. All amounts are stated in Canadian dollars on an IFRS basis unless otherwise indicated.
The Company is pleased to announce its Q2 results with a revenue of $20.5 million and adjusted EBITDA of $2.5 million, a 12% margin. YTD revenue is $41.3M with adjusted EBITDA of $6.6M. This performance underscores the company's commitment to consistent performance and positive cash flow while investing heavily in our future titles.
ESGG has demonstrated a robust focus on sustaining the success of its long-tail games while strategically investing in new launches across both idle and match games. Significant investments were made in enhancing existing titles, notably Bud Farm: Munchie Match, which continued to excel as ESGG's flagship match game. This title saw a nearly 50% increase in average topline revenue over the quarter, highlighting the growing importance of match games to ESGG's future revenue streams. ESGG allocated approx. $5.7M towards user acquisition, a $900k increase over Q1. Much of this was directed towards match games, while successfully maintaining payback window targets for these titles. Despite this extra $900k investment into future quarters and spending $138k through the company's NCIB in Q2, the cash balance increased to $7.6M.
The successful launch of Cheech and Chong's: Kush Kingdom in Q2 marks ESGG's second entry into the match game market. Early metrics are meeting or surpassing those of Bud Farm: Munchie Match. This repeatable success in the puzzle genre reinforces ESGG's trajectory toward becoming a leading industry player in Match 3 games.
Another notable recent achievement was the historic brand crossover event between Star Trek Lower Decks: Mobile and Doctor Who: Lost in Time. This epic collaboration resulted in ESGG's highest revenue day since the end of the pandemic lockdowns and set a new record for Doctor Who: Lost in Time. The event generated substantial excitement on social media, showcasing strong engagement and interest from our community. Encouraged by this success, ESGG is already planning additional brand crossover events within its diverse portfolio of titles.
Looking ahead to Q3, ESGG is excited about the worldwide launch of POWER RANGERS MIGHTY FORCE, which has shown promising early numbers. Additionally, the company is thrilled to announce its second collaboration with World of Wonder. This partnership will focus on an upcoming mobile game inspired by the popular show RuPaul's Drag Race. ESGG's first game in collaboration with WOW, RuPaul's Drag Race Superstar, launched in October 2021, remains the studio's top-grossing game with over 4.4M installs.
"Our team delivered another strong quarter with continued stability through the first half of the year. We grow stronger every quarter as we increase our cash balance, diversify our portfolio, invest heavily in our future, and, most importantly, build a strong base of knowledge and experience, which will allow us to dominate new genres with exceptional IP game launches," said Jason Bailey, CEO of East Side Games Group.
Three Months Ended June 30, 2024 Financial highlights
- For the quarter ended June 30th, 2024, revenue was $20.5M.
- Q2 2024 a-EBITDA of $2.5M and 12% a-EBITDA margin.
- Cashflow for the Company for the quarter ended June 30, 2024 increased by $350k, ending at $7.6M.
- Daily Active Users in Q2 were 229k, with an ARPDAU of $0.98
- 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 June 30, 2024, the Company purchased 1,430,419 shares at an average price of $0.77. The company continues to buy back stock as restrictions allow.
Certain information provided in this news release is extracted from the consolidated financial statements (the "Financial Statements") and Management's Discussion & Analysis ("MD&A") of the Company for the quarter ended June 30, 2024, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company's profile on SEDAR and EDGAR.
Webcast and Conference Call Information
The Company will hold a conference call to discuss its performance with the investment community at 2:00 PM PT Aug 13th, 2024. Related earnings release materials can be found on East Side Games Group website at
https://eastsidegamesgroup.com/investors/financial-information/.
Webcast and Conference Call Details:
Webcast URL: | |
Toll Free Dial-In Number: | +1 (800) 717-1738 |
Local Dial-In Number: | +1 (289) 514-5100 |
Conference ID: | 63202 |
A replay will be available by dialing +1 (888) 660-6264 or +1 (289) 819-1325 and entering passcode 63202#.
ABOUT EAST SIDE GAMES GROUP
East Side Games Group is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty. Our studio groups entrepreneurial culture is anchored in creativity, execution, and growth through licensing of our proprietary Game Kit software platform that enables professional game developers to greatly increase the efficiency and effectiveness of game creation in addition to organic growth through a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, Star Trek: Lower Decks – The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who: Lost in Time, RuPaul's Drag Race Superstar, AEW: Rise to The Top, Cheech and Chong Bud Farm, and Trailer Park Boys: Grea$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.
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.
SOURCE East Side Games Group Inc.
For Further Information: Media Inquiries: [email protected]; Investor Relations: [email protected], 3104 - 1055 Dunsmuir Street, Vancouver BC V7X 1G4
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