East Side Games Group Reports Third Quarter 2022 Financial Results

3rd quarter revenue of $25.0Man increase of 32% compared to the same period last year

Cumulative revenue in the 3rd quarter of $90.4 millionan increase of 40% compared to the same period last year

VANCOUVER, BC, November 10, 2022 /CNW/ – East Side Games Group (TSX: EAGR) (OTC: EAGRF) (“ESGG“or the”Company“), today announced financial results for the third quarter ended September 30, 2022. All amounts are expressed in Canadian dollars under IFRS, unless otherwise indicated.

The launch of Star Trek, in the final days of Q3, positions us well for Q4 and the end of fiscal 2022. Doctor Who: Lost in Time will be our next major IP-based title, currently in pre-launch. and slated for global launch. We also soft-launched titles in three new genres, Trailer Park Boys Merge, Bud Farm Munchie Match and Milk Farm Tycoon, all of which are showing strong engagement metrics. This will bring our total of games launched in 2022 to 11 titles, one more than our goal of 10 titles.

Three of ESGG’s top five games have been released in the last 12 months. Superstar of RuPaul’s Drag Race, The Office: Somehow We Manage and Star Trek: Lower Decks – The Badgey Directive. These titles prove that the product market is right for GameKit, our proprietary software framework that allows developers to build faster, cheaper, and with a better chance of success. It also proves that our focus on IP-based games is a solid model in a post-transparency Ad Tracking (“ATT”) world.

For 2023, we’ll be focusing more on big IP-based games, where we’ve had the most success. We will invest in our winners and bet smartly on what works in the new market dynamics. We’ve signed deals for new IPs and new games for next year with NBCUniversal, Creative Artists Agency, Jazwares, All Elite Wrestling, Digital Dogg and others. We have also signed numerous development partnership agreements with leading studios around the world.

“We expect to have positive EBITDA for the year while maintaining year-over-year growth. We remain focused on our goal of providing creators with the tools to successfully deliver mobile gaming experiences that engage players on a daily basis,” said Jason BaileyCEO of East Side Games Group.

Three and nine months ended September 30, 2022 Strong points:

  • Q3 2022 revenue was $25.0 milliona 32% increase over Q3 2021 revenue of $19.0 million. For the nine months ended September 30, 2022income was $90.4 milliona 40% increase over the nine months ended September 30, 2021.
  • Cash for the Company at September 30, 2022 has been $5.2 million compared to $9.2 million at December 31, 2021. The company had $0.8 million indebted. In 2022, the Company extended its operating credit facility by $3.5 million at $7.1 million increasing its global credit facilities to $17.1 million.
  • Daily active users in Q3 were 298K (Q3 2021 – 244k) and monthly active users were 1.0M (Q3 2021 – 871k). The average revenue per daily active user was $0.94 (Q3 2021 – $0.85).
  • Q3 2022 Adjusted EBITDA was ($1.0) million (Q3 2021 – $1.1 million) and year-to-date adjusted EBITDA was $2.6 million (YTD 2021 – $6.3 million).
  • Q3 2022 net loss was $3.5 million (Q3 2021 – net loss of $1.4 million) and year-to-date net income was $14.4 million (YTD 2021 – net loss of $1.1 million). Net profit for the nine months ended September 30, 2022 included a $19.5 million result item for the reversal of the conditional payment.
  • Launch of Star Trek Lower Decks and soft launch of Doctor Who, Milk Farm Tycoon, Trailer Park Boys Merge, Bud Farm Munchie Match, and others.
  • On August 11, 2022, the Company announced its intention to buy back up to 4,076,819 shares under its OPRC. Through September 30, 2022the Company purchased 98,139 shares.

Certain information provided in this press release is extracted from the Company’s consolidated financial statements (the “Financial Statements”) and management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2022 and should be read in conjunction with them. Only in the context of the complete information and disclosures contained in the financial statements and the MD&A can an investor 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 today. Related earnings release materials are available on the East Side Games Group website at https://eastsidegamesgroup.com/investors/financial-information/.

Webcast and conference call details:
Webcast URL: https://app.webinar.net/vxV0plML4mb

Freephone number:

+1 (888) 886-7786

Local call number:

+1 (416) 764-8658

Conference ID:

11113306

A replay will be available from 6:30 a.m. PT November 11, 2022 until December 10, 2022 by dialing +1 (877) 674-7070 or +1 (416) 764-8692 and entering conference ID 113306.

ABOUT EAST SIDE PLAYGROUP

East Side Games Group (formerly doing business as “LEAF Mobile Inc.”) is one of the leading free-to-play mobile game groups. Through our proprietary Game Kit software platform, we enable creators to successfully deliver memorable mobile gaming experiences that engage gamers every day. We publish a diverse portfolio of original and licensed mobile IP games that include: The Office: Somehow We Manage, RuPaul’s Drag Race Superstar, star trek: From lowercks- The Badgey Directive, Bud Farm Idle Tycoon, Cheech & Chong Bud FarmIt’s Always Sunny: The Gang Goes Mobile, Trailer Park Boys Greasy Money and other proprietary and intellectual property-based properties.

Additional information about the company is still available under its legal name, East Side Games Group Inc., at www.sedar.com.

Forward-looking information

Certain statements contained in this release are forward-looking statements, which reflect management’s expectations regarding the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intentions regarding the future. These statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. There can be no assurance that any of the events anticipated by the forward-looking statements will occur or, if they occur, what benefits the Company will derive therefrom. These forward-looking statements reflect management’s current beliefs 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 press release.

SOURCE Leaf Mobile Inc.

For more information: Media inquiries: [email protected]; Investor Relations: [email protected]; 1055 Dunsmuir Street, Suite 3104, Vancouver, BC, V7X 1G4