- Revenue of $21.4M in Q3 2024
and $62.8M Year to Date
- A-EBITDA of $2.56M in Q3 2024
and $9.2M Year to Date
- POWER RANGERS: MIGHTY FORCE launched globally
VANCOUVER, BC, Nov. 14,
2024 /CNW/ - East Side Games Group (TSX: EAGR) (OTC:
EAGRF) ("ESGG" or the "Company"), is pleased to
announce its financial results for the third quarter ended
September 30, 2024. All amounts are
stated in Canadian dollars on an IFRS basis unless otherwise
indicated. Building on the momentum from Q2, the company achieved
its first growth quarter of the year, reporting a top-line revenue
of $21.4 million, a 4% increase
quarter-over-quarter and a 3% increase year-over-year.
The company's adjusted EBITDA for the quarter was $2.56 million, representing a 12% margin and
marking the eighth consecutive profitable quarter above
$2.5 million. East Side Games Group
continues to demonstrate strong performance metrics across its core
portfolio, with an average daily user count (DAU) of 236,000, a
stickiness rate of 24%, and an average revenue per daily active
user (ARPDAU) of $0.99.
"Our focus on profitability within our existing portfolio has
paid off, and we are excited to further enhance our user
acquisition strategies," said Jason
Bailey, CEO of East Side Games Group. "With $8.3 million in cash—our highest balance since Q2
2022—we are well-positioned to invest in our future game launches
and bolster our share buyback program."
One of the key drivers of growth this quarter was the launch of
POWER RANGERS: MIGHTY FORCE in August, which quickly
garnered nearly 30,000 daily active users and demonstrated
impressive return on advertising spend (ROAS) figures.
In Q3, the company also enhanced its revenue generation through
innovative strategies. The introduction of bi-monthly season passes
for popular titles like Trailer Park
Boys: Greasy Money and Cheech and Chong: Bud Farm resulted in a remarkable 40%
increase in season pass revenue.
In a major collaboration, East Side Games Group partnered with
BBC and Paramount to create the Intergalactic Friendship Day
crossover event between Star Trek Lower Decks: The Badgey
Directive and Doctor Who: Lost in Time, generating
substantial organic traffic and setting new ARPDAU records.
Looking forward to Q4, East Side Games Group is excited to
introduce team-based cooperative and competitive play features into
titles such as Trailer Park Boys:
Greasy Money and RuPaul's Drag Race Superstar,
anticipating a significant boost in player engagement and
monetization.
Moreover, the company is preparing to launch Trailer
Park Boys: Greasy Money on the
Epic Games Store, expanding its reach in a new mobile marketplace
with favorable revenue-sharing terms. This is a very exciting
opportunity, only being afforded to a few game studios.
Finally, East Side Games Group is thrilled to announce our
upcoming title, RuPaul's Drag Race Match Queen, developed in
partnership with Funkitron and World of Wonder. Slated for a 2025
release, this hybrid match-3 game combines beloved gameplay
elements with captivating fashion and character features, catering
to the passionate fanbase of RuPaul's Drag Race.
Mike Edwards will be stepping down
from the ESGG Board of Directors to focus on other pursuits,
effective immediately. ESGG thanks him for his invaluable guidance
over the past 12 years and is currently in discussions with several
highly qualified candidates for his replacement.
Three Months Ended Sep 30, 2024
Financial highlights
- For the quarter ended September 30th,
2024, revenue was $21.4M.
- Q3 2024 a-EBITDA of $2.56M and
12% a-EBITDA margin.
- Cashflow for the Company for the quarter ended September 30, 2024 increased by $700k, ending at $8.3M.
- Daily Active Users in Q3 were 236k, with an ARPDAU of $0.99
- 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 September 30, 2024, the
Company purchased 1,540,719 shares at an average price of
$0.76. The company continues to buy
back stock as restrictions allow.
Certain information provided in this news release is extracted
from the consolidated financial statements (the "Financial
Statements") and Management's Discussion & Analysis
("MD&A") of the Company for the quarter ended September 30, 2024, and should be read in
conjunction with them. It is only in the context of the fulsome
information and disclosures contained in the Financial Statements
and MD&A that an investor can properly analyze this
information. The Financial Statements and MD&A can be found
under the Company's profile on SEDAR and EDGAR.
Earnings Call Video
ESGG will release its third-quarter 2024 financial results and
business outlook on its investor relations website
https://eastsidegamesgroup.com/investors/financial-information on
Thursday, November 14th, 2024, at
approximately 2:00 p.m. Pacific
Time.
ABOUT EAST SIDE GAMES GROUP
East Side Games Group is a leading free-to-play mobile game
group, creating engaging games that produce enduring player
loyalty. Our studio groups entrepreneurial culture is anchored in
creativity, execution, and growth through licensing of our
proprietary Game Kit software platform that enables professional
game developers to greatly increase the efficiency and
effectiveness of game creation in addition to organic growth
through a diverse portfolio of original and licensed IP mobile
games that include: The Office: Somehow We Manage, Star Trek: Lower
Decks – The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who:
Lost in Time, RuPaul's Drag Race Superstar, AEW: Rise to The Top,
Cheech and Chong Bud Farm, and
Trailer Park Boys: Grea$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.