Wednesday, February 23, 2022

eSports Entertainment Group, Inc. (GMBL)
A Big Miss

Esports Entertainment Group Inc is a development-stage online gambling company focused purely on esports. The company’s principal business operations include design, develop and test wagering systems.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Disappointing quarter. The company reported fiscal second quarter end Dec. 2021 net revenue of $14.5 million, which missed our mark by a significant 30%. Our Q2 revenue estimate was $20.8 million. Adj. EBITDA loss was $6.8 million, nearly double our loss estimate of $3.45 million.


A convergence of negative factors.  The first quarter-over-quarter revenue decline in more than a year was attributable to the following: the company ceased iGaming operations in the Netherlands due to a challenging regulatory environment, European sportsbooks had extremely low hold, and the Omicron variant caused the company to delay the launch of LANDuel and the opening of a Helix esports center …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.