FansUnite Entertainment Inc. (TSX: FANS) (OTCQB: FUNFF), a global sports entertainment and gaming company, has recently announced significant strategic changes to streamline its business operations.
Agreement with DragonBet
The company revealed an agreement with DragonBet, a Welsh-based UK sportsbook, to migrate off the Chameleon Gaming platform on or about September 3, 2023. This migration, coupled with the previous sale of the Chameleon source code to Betr Holdings, Inc., completes FansUnite’s transition away from business-to-business (B2B) platform licensing.
Focus on Profitable Affiliate Segment
This move will contribute to the Company’s annualized cost savings of approximately $7.1 million. The cost savings include reductions in salary and other administrative expenses and will be reflected in FansUnite’s financial results once the Chameleon Gaming platform’s operations are wound up.
The company’s decision to increase its focus on its affiliate segment aligns with its strategic plan to improve financial efficiency. FansUnite reported a contribution of $23.0 million of its $27.3 million in revenue during Fiscal 2022 from this segment alone.
CTO Jeremy Hutchings Steps Down
Further, FansUnite announced that Jeremy Hutchings will step down as Chief Technology Officer on September 30, 2023. His departure is in line with the Company’s new focus on the more profitable affiliate segment. Hutchings will continue to provide consultation on monetizing the Chameleon Gaming Platform’s source code. FansUnite CEO, Scott Burton, expressed his gratitude to Hutchings for his significant contributions and wished him success in his future endeavors.
Positive Cash Flow Expected in Q4 2023
FansUnite expects to generate positive cash flow in Q4 2023, aided by the agreement with DragonBet and the company’s strategic emphasis on more financially efficient operations. Scott Burton expressed his pleasure at the DragonBet agreement, stating, “These transactions advance our efforts of streamlining our business operations and put us in a position where we can expect to generate positive cash flow in Q4 2023.”
The company’s renewed focus on the affiliate segment and commitment to streamlining its business puts it on a promising path towards substantial cost savings and revenue growth. FansUnite’s recent moves clearly illustrate its determination to improve financial efficiency and strengthen its position in the regulated and lawful sports betting affiliate market.
