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East Side Games Group Reports Fourth Quarter 2023 Financial Results
Thursday, April 4, 2024Company Profile | Follow Company
Vancouver, BC, April 4, 2024--(T-Net)--East Side Games Group (TSX: EAGR) (OTC: EAGRF), today announced financial results for the fourth quarter and year ended December 31, 2023.
All amounts are stated in Canadian dollars on an IFRS basis unless otherwise indicated.
The Company announced a strong finish to 2023, marking the most profitable quarter in its history and the fifth consecutive quarter exceeding $2.5 million in adjusted EBITDA.
The Company's focused efforts on profitability throughout the past year, coupled with strategic realignment initiatives, culminated in a robust conclusion to the year. In the fourth quarter, the Company achieved revenue of $20.6 million and adjusted EBITDA of $4.5 million, reflecting a 22% margin.
East Side Games Group reaffirmed its commitment to delivering captivating IP-driven games tailored to passionate audiences while collaborating with renowned brands in Movies, Television, Toys, Music, and Sports.
In 2024, East Side Games Group will present a robust lineup of game launches, starting with AEW: Rise to the Top (January 2024). In Q2 2024, anticipate the release of three games, each based on iconic brands. The company also has other titles in active development that utilize new and existing IP partnerships with 2024 and 2025 launch targets.
This year witnessed further development of the new Matchkit framework, with the first game using the framework, Bud Farm: Munchie Match, delivering the strongest retention metrics in the company's thirteen-year history. ESGG says it will continue developing the Matchkit to scale and bring the same revolution to the Match genre as they did to the Idle genre. They have already soft-launched their second match title, with several more in active development.
ESGG continues to experience growth due to the strength of its GameKit framework. They currently have seven LiveOps titles that generate 90% of their revenue, with no single title comprising more than 20%. This diverse position sets them apart from many mobile game companies, as most rely on a single title to drive 90% of their revenue.
Jason Bailey, CEO, ESGG
"2023 was a difficult year for mobile games and for the tech industry as a whole. It was a year that saw more than two hundred thousand jobs eliminated, hundreds of companies failing, and billions in market cap evaporating. Despite these headwinds and through the resilience of our incredible leadership team, ESGG has been able to keep revenues relatively flat while incrementally increasing profitability and growing our cash reserves. No small feat, and something I am very proud of." said Jason Bailey, CEO of ESGG.
"Moving forward to 2024, we are seeing markets recover, opportunities present themselves again and the industry quickly recovering. Great things lie ahead for this team and the technological foundation we have built. We remain more committed than ever to our goal of providing creators tools to deliver mobile gaming experiences that engage players every day."
Three months ended December 31, 2023 Highlights:
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 http://www.sedar.com
Additional Details on Earnings Report 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 year ended December 31, 2023, 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. |
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. |
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