TORONTO, May 24, 2017 /CNW/ - Gaming Nation Inc. (TSXV-FAN) ("Gaming Nation" or the "Company"), today announced its financial and operational results for the first quarter ending March 31, 2017. Consolidated financial statements and Management Discussion & Analysis for the quarter can be found on SEDAR (www.sedar.com). All amounts are reported in Canadian dollars unless otherwise noted.
"The first quarter resulted in several key milestones being achieved while operating results showed a solid start to the year," said Scott Secord, Gaming Nation's President and Chief Executive Officer. "The Company was pleased to conclude its acquisition of BD Sport Group on March 2, 2017 and integration of those businesses are progressing well in all key areas. 5050 Central was certified and approved to conduct business in Ontario, Canada and launched its Charities and Non-Profits Division during Q1. 5050 Central also announced several strategic partnerships within the NCAA market with digital and property rights holders including IMG College, OUTFRONT Media and Van Wagner Sports and Entertainment. In addition, Fantasy Guru continued its strong growth through the recently launched Fantasy Guru Elite platform as the company added more than new 13,000 subscribers since inception. We are extremely pleased with the results of Q1 and the continued momentum and progress in Q2."
First Quarter Segment Highlights and Recent Developments
- 5050 Central Ltd. - During Q1 of 2017, 5050 Central established multi-year partnerships with 32 new customers and renewed agreements with 30 clients representing more than $1,300,000 in annual recurring revenue. 5050 Central saw total Q1 raffle proceeds increase by 16% to $21.3 million compared to $18.2 million in Q1, 2016. In addition, 5050 Central became the first company, outside of the Ontario Lottery and Gaming pilot project, to successfully complete technical certification in Ontario and received operating approval early in the second quarter. 5050 Central has since signed a long-term exclusive agreement with the Ontario Hockey League and its 20 member teams as well as agreements with Ontario based CFL teams and several other organizations.
- BD Sport Group Ltd. - During Q1, Gaming Nation completed the acquisition of BD Sport Group Ltd. ("BD Sport") with the transaction closing on March 2, 2017. BD Sport was founded in 2007 to provide stadium betting services for sports teams and brands primarily in the UK football market. BD Sport operates stadium betting at 31 stadiums in the UK and processes more than 3 million bets per season from football and rugby fans via its company BD Stadia Ltd. BD Sport also provides sports marketing services for many gambling brands and rights holders in the UK and across Europe. During the stub-quarter, BD Sport concluded 9 new agency agreements including its largest agency agreement with Ladbrokes Coral PLC ("LC").
- Sports Information Portals - In Q1 2017, Fantasy Guru continued to demonstrate strong growth. Revenues increased by $810,000 in Q1 compared to Q1 of 2016 due to the launch of Guru Elite. Early results have been extremely positive with more than 13,000 new subscribers being added to the service since its launch. The Company has already generated more than $800,000 in subscription sales from its baseball platform since March, 2017. Fantasy Guru's traditional business is positioned well for the upcoming NFL season with additional premium services being added to the subscriptions packages. The Company expects these new services will increase subscribers while driving incremental revenues with existing and loyal customers.
The first quarter 2017 operating results ending March 31, 2017 of Gaming Nation Inc. include operations from the following reportable segments: electronic 50/50 raffle platform through 5050 Central Ltd and 5050 Central Delaware Inc. (collectively "5050 Central"); sports intelligence information through Guru Fantasy Reports, Inc. ("Fantasy Guru & Guru Elite") and Stevo Design, Inc. ("Pick Nation"); and in-stadium betting and sponsorship from the stub-quarter through BD Sport Ltd. and BD Stadia Ltd. (collectively "BD Sport")
Q1 2017 Financial Summary
- Consolidated revenue was $ 3.22 Million for the first quarter ending March 31, 2017
- Revenue increased by 42% in Q1 2017 vs Q1 2016
- Adjusted EBITDA was $ 0.09 Million for the first quarter ending March 31, 2017
- Net loss from continuing operations was $1.65 Million for the first quarter ending March 31, 2017
Financial Position as of March 31, 2017
- Cash of $ 3.86 Million
- Total assets of $ 73.3 Million
- Total liabilities of $20.5 Million
- Total equity of $ 52.8 Million
Conference Call Details
Gaming Nation will host an analyst/shareholder conference call on Thursday, May 25, 2017 at 8:00 a.m. ET to discuss its financial and operational results of its 2017 first quarter. Scott Secord, CEO, and Blair McGibbon, CFO, will chair the call.
To access the conference call dial (647) 427-7450 or (888) 231-8191. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. A question and answer session for analysts will follow management's presentation.
A digital recording of the conference call will be available for replay two hours after the call's completion. The recording will be available until Tuesday, June 6, 2017. To access the recording, please dial 1.855.859.2056 and the conference ID # 21476190.
About Gaming Nation Inc.
Gaming Nation Inc. (TSXV-FAN) provides technology and information platforms to the sports and entertainment industry. The Company's platforms include 5050 Central, an electronic real-time raffle system, BD Sport Group, providing in-stadium betting in the UK football market, and sports information websites Fantasy Guru, Fantasy Guru Elite and Pick Nation.
For more information, visit www.gamingnationinc.com
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.
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Gaming Nation Inc.'s control, including the impact of general economic conditions, industry conditions, currency fluctuations, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although Gaming Nation Inc. believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Gaming Nation Inc. does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
SOURCE Gaming Nation Inc.
For further information: Contact Information: Scott Secord, President/CEO, (416) 479-3873; Joann Head, Director of Investor Relations, (647) 692-9600