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.
Today the Company announced its Q4 and full year 2023 financial results. All amounts are in Canadian Dollars. Here are the numbers:
Fourth Quarter Fiscal 2023 Financial Highlights
- Total revenue for the three months ended December 31, 2023 was $6.54 million, an increase of 18% when compared to the same period in the prior year (December 31, 2022: $5.55 million).
- Gross margin for the three months ended December 31, 2023 was 60%, compared to 62% over the same period in Fiscal 2022.
Fiscal 2023 Financial Highlights:
- Total revenue of $23.72 million, an increase of approximately 3% over 2022.
- Gross margin of $14.88 million (63%) as compared to $12.83 million (56%) for 2022.
- Repayment of $5.51 million of bank indebtedness.
- Direct digital activation brand, Props.com, contributed revenue of $237 thousand in fiscal 2023, a 402% increase when compared to $47 thousand in fiscal 2022.
2023 Operational Highlights:
- Throughout 2023 FansUnite initiated a number of strategic steps to become cash flow positive by the end of the year. These included the sale of BetPrep, McBookie and the Chameleon source code sale to Betr Holdings.
- With the asset sales the company anticipated annualized cost savings of approximately $7.8 million, including reductions in salary and selling, general, and administrative costs.
- On March 15, 2023, FansUnite closed a non-brokered private placement, issuing 37,976,242 units at $0.08 per unit, generating gross proceeds of $3.04 million. Each unit comprised one Common Share and one Common Share purchase warrant, allowing the holder to purchase one Common Share at $0.12 per warrant share for 36 months following the offering’s closing date.
- FansUnite and its subsidiaries received nominations in six award categories at the 2023 EGR North America Awards. Betting Hero, the company’s customer acquisition, retention, and development brand, earned recognition in three categories:
- Employer of the Year
- Acquisition and Retention Partner of the Year
- Customer Onboarding Partner of the Year
“After obtaining additional capital from strategic resources, divesting of cash burning assets, repaying debt, and focusing on our affiliate business, we’re positioned to generate strong, sustainable margins and cash flow,” said Scott Burton, CEO of FansUnite. “As we close the chapter on this transformative year, where over $7.8 million in annualized cost savings are anticipated, we turn our attention to the rest of 2024 with a commitment to build off this momentum to deliver continued growth and positive results.”
The stock is down 11% on the news at time of writing.
The stock is in its range/consolidation phase. For a breakout, the stock needs to confirm a daily candle close above the $0.065 zone. Support comes in around $0.03, and the stock could pullback to the lower portion of the range. Currently, the stock is just bouncing between $0.04 and $0.045.
