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.
Reader Advisory
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.