On Tuesday, Canadian esports company Enthusiast Gaming Holding, which owns and operates Luminosity Gaming, Vancouver Titans, and Seattle Surge, reported its annual 2019 results.
Since its incorporation on Aug. 29, the company generated revenues of $12.2M CAD ($8.54M USD) while making a net loss of $78.5M ($54.95M). Throughout 2019, Enthusiast Gaming completed several mergers and acquisitions, which catalyzed the net loss as expenses of $56M ($39.2M) were caused by those business transactions. The group’s costs for its esports players, teams, and games were $1.7M ($1.19M) for the period.
“We continue to meet and, in most instances, exceed our operational targets across the Enthusiast platform, which alongside our strong balance sheet allows us to augment and complement our organic growth performance with strategic growth opportunities,” said Adrian Montgomery, CEO of Enthusiast Gaming, in a release. “At the same time, we are mindful and monitoring the impact of COVID-19 on our business during these difficult times across the globe; however, so far, we are experiencing increased engagement on our media platform.” Enthusiast Gaming ended 2019 with $13.2M ($9.24M) in cash, which could serve as short-term liquidity in case the company experiences negative impacts from the current global health crisis.
In December 2019, Enthusiast Gaming completed a listing in the United States on The Venture Market (OTCQB) and on Jan. 27, 2020, its Canadian listing graduated to the Toronto Stock Exchange (TSX) from the TSX Venture (TSXV). On Feb. 24, 2020, Francesco Aquilini, a chairman in the company, purchased 250K shares roughly worth $510K ($357K) in the open market.
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