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.
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.
