TORONTO, Aug. 28, 2017 /CNW/ - Gaming Nation Inc. (TSXV-FAN) ("Gaming Nation" or the "Company"), today announced its financial and operational results for the second quarter ending June 30, 2017. Condensed 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.
During the second quarter, Gaming Nation Inc. entered into a plan of arrangement with OC Special Opportunities Fund, LP, a private investment fund, managed by Orange Capital Ventures GP, LLC. to acquire 100% of shares in Gaming Nation Inc. "We believe the transaction with Orange Capital is both a positive for our shareholders and for the future of Gaming Nation and its core business lines," said Scott Secord, Gaming Nation's President and CEO.
Scott Secord further commented, "In addition to the announcement of the plan of arrangement, I am pleased to report Gaming Nation's core business lines hit key strategic and financial milestones during Q2. 5050 Central secured new agreements with 27 customers in North America, with the Ontario market being a primary area for growth with major customer acquisitions in the Canadian Football League and Ontario Hockey League. BD Sport Group continued to match historical performance, while securing long-term renewals from customers such as Newcastle United F.C. and Aston Villa F.C. The Fantasy Guru business continues to exceed revenue projections thanks to the launch of the Guru Elite business, showing year-over-year Q2 revenue increase of 966%. Q2 was a strong quarter for all of our key business lines and we anticipate that to continue in the coming quarters through end of fiscal year 2017."
Second Quarter Segment Highlights
- 5050 Central Ltd. – During Q2, 5050 Central secured multi-year agreements with 27 new customers and also renewed 14 existing customers. This represented more than $500,000 in annual recurring revenue. 5050 Central's total Q2 raffle proceeds increased by 20% to $22.6 Million compared to $18.8 Million in Q2 2016. The business line's primary area for growth during the quarter was the newly regulated Ontario market with more than 20 customers signing long-term agreements.
- BD Sport Group Ltd. – BD Sport Group continues to match historical revenue performance and continue to strengthen the business by entering into long-term agreements, including 4 key professional football clubs.
- Sports Information Portals – In Q2, Fantasy Guru continued to exceed financial projections, generating a total of $1.1 Million in revenue. This represents a 966% increase in revenues in Q2 of 2017 compared to Q2 of 2016. The MLB season has been especially strong with over 7,000 subscriptions to date. The company expects to see continued strong performance in the NFL market due to the support of a strong user base, new product offerings and the new addition of industry leading analysts and experts.
The second quarter 2017 operating results 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 through BD Sport Ltd. and BD Stadia Ltd. (collectively "BD Sport")
Q2 2017 Financial Summary
- Consolidated revenue was $3.85 Million for the second quarter ending June 30, 2017 and $7.07 Million on a year-to-date basis.
- Revenue increased by 74% in Q2 2017 vs. Q2 2016 and by 58% on a year-to-date basis.
- Adjusted EBITDA was $ 0.06 Million for the second quarter ending June 30, 2017 and $0.15 Million on a year-to-date basis.
- Net loss from continuing and discontinued operations was $3.39 Million for the second quarter ending June 30, 2017 and $5.03 Million on a year-to-date basis.
Financial Position as of June 30, 2017
- Cash and short term investments of $1.67 Million
- Total assets of $68.42 Million
- Total liabilities of $19.21 Million
- Total equity of $49.21 Million
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