Tuesday, May 18, 2021

Esports Entertainment Group, Inc. (GMBL)
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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.

Better-than-expected Q3 results. Total company revenues of $5.4 million was 10% better than our $4.9 million estimate, which benefited from one month of Lucky Dino, a $2.3 million revenue contribution in the quarter. Gross profit margins were surprisingly strong at 57% versus our 44% estimate, which accounted for gross profit to be 45% above our estimate. Adjusted EBITDA was a loss of $2.1 million, which was roughly $1 million better than our $3.1 million loss estimate.


Favorable operating momentum.  The company reiterated its guidance for $18 million in fiscal 2021 revenue and $70 million for full fiscal year 2022. This implies $10 million in fiscal Q4 2021 revenue, in line with our estimates. Notably, the company anticipates that its new burn rate has decreased from $900,000 per month to $600,000 per month, better than our Q4 2021 expectation of $700,000 …

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.