FansUnite (FANS.TO) is a sports and entertainment company, focusing on technology related to regulated and lawful online sports betting, esports betting, casino and fantasy. Their mission is to be a leader in the gaming industry by providing their partners and players the industry’s most versatile and vertically integrated platforms with a portfolio of unique products and a focus on esports, sports betting, casino and the next generation of bettors.
The Company today announced it has filed its consolidated audited financial statements and associated management’s discussion and analysis for the full financial year ended December 31, 2022 (“Fiscal 2022”). All amounts are in Canadian dollars.
Here are the 2022 financial highlights:
- Total revenue of $27.30 million for the full year of Fiscal 2022, an increase of 387% over the same period in Fiscal 2021
- Gross margin of $14.85 million (54%) for Fiscal 2022 as compared to $2.88 million (51%) for Fiscal 2021
- Adjusted EBITDA loss of $8.67 million, as compared to $10.06 million in 2021
Q4 fiscal 2022 operational highlights include:
- On October 5, 2022, FansUnite announced that the Company obtained the GLI-33 Event Wagering Systems certification from Gaming Laboratories International (GLI ®) for its Chameleon iGaming Platform software as a service (“SaaS”) sportsbook solution.
- On October 6, 2022, FansUnite appointed gaming expert Quinton Singleton as a member of the Company’s Board of Directors to advance its North American expansion strategy.
- On December 15, 2022, FansUnite announced that the Ohio Casino Control Commission has granted the Company a Sports Gaming Supplier License for its Chameleon iGaming platform in the state of Ohio in connection with sports micro-betting brand betr’s launch on January 1, 2023.
Press releases which came out just prior to fiscal 2022 includes the January 18th 2023 news which saw FansUnite report that its subsidiary McBookie Ltd produced an increase in its annual turnover in 2022, across its sports betting and casino channels, to £44.8 million as compared to £36.6 million in 2021, an increase of 22% while gross win across both channels increased by 44% to £2.35 million from £1.63 million.
FansUnite announced its Company’s customer acquisition, retention, and development brand, Betting Hero, has been shortlisted as finalists for the following five award categories in the 2023 iGB Affiliate Awards: (Best Sports Betting Affiliate, Best Casino Affiliate, Rising Star, Innovation Award, and the Affiliate Employer of the Year).
A transaction which will see Stram Entertainment Limited, d.b.a. BestOdds, acquiring one of the Company’s affiliate brands, BetPrep. As part of the agreement, BestOdds will pay FansUnite a 30% revenue share for 36 months, after the agreed upon ramp-up period ends on September 1, 2023.
FansUnite reported that Betting Hero registered more than 6,700 new depositing customers for its sportsbook partners, setting a new Company record for new depositing customers in a four-day period during the Super Bowl LVII weekend.
FansUnite announced that the Company and Betting Hero were shortlisted as finalists for the following six award categories in the 2023 EGR North America Awards: (Sportsbook Platform Provider of the Year, Affiliate of the Year, Employer of the Year, Diversity & Inclusion Model of the Year, Acquisition & Retention Partner of the Year, Customer Onboarding Partner of the Year).
FansUnite completed a $3.04 million non-brokered private placement led by Tekkorp Capital and affiliates, an investment firm that advises and invests in innovative public and private companies within the global digital gaming industry, in which a total of $1.4 million were invested into FansUnite by both Tekkorp and FansUnite’s insiders and management.
“We are pleased to report significant year-over-year revenue growth in Fiscal 2022, as highlighted by our total revenue of $27.30 million, an increase of 387% as compared to the last fiscal year while operating at a gross margin of 54%,” said Scott Burton, CEO of FansUnite. “The increase in our revenue was primarily driven by the affiliate operations of Betting Hero which continued to reach operational milestones by entering new U.S. betting jurisdictions and demonstrating strong results during major sporting events throughout the year. In addition, we also saw substantial growth in our B2C and B2B operations as a result of the recent FIFA World Cup and the commercialization of our white-label B2B solutions.”
Mr. Burton added, “Our focus for the remainder of 2023 is to continue our strategy of scaling our existing business units that are performing well. We will continue to identify areas in our company where we can improve operational and financial efficiency in order to reach cash flow breakeven in the near future.”
FansUnite is trading lower for the day, down 6.67% and sits at a market cap just above $25 million.
The stock is currently sitting at a major support zone, very close to previous record lows printed at $0.06. You can see that FansUnite actually popped from this support at the beginning of the year. The pop provided a return of over 100% from support at $0.07 to highs just above $0.15.
In recent days, buyers have been entering at this zone as can be seen by large wick and full bodied green candles. The stock really needed a catalyst for a rally from here and earnings isn’t doing it.
Going forward, a long range has developed and technical traders would watch for a close above $0.075 to confirm a breakout.
