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 it has filed its condensed consolidated interim financial statements and associated management’s discussion and analysis for the three months ended March 31, 2024. All amounts are stated in Canadian dollars unless otherwise indicated.
Results include:
- Total revenue for the period ended March 31, 2024 was $8.3 million, a 14% increase year over-year.
- Gross margin for the period ended March 31, 2024 was 63% as compared to 65% over the same period in 2023.
- Total adjusted EBITDA for the period ended March 31, 2024 was $1.7 million, a 58% increase year-over-year.
“We are pleased to be able to show that our efforts to reach sustainable growth have been successful with our first quarter results,” said Scott Burton, CEO of FansUnite. “We continue to see year-over-year revenue growth while achieving strong earnings results with a first quarter increase in adjusted EBITDA of 58%. Our team’s diligent efforts have propelled us to profitability and eliminated the need for outside capital funding. With our focus now on maintaining a strong balance sheet, we will aim to reduce our liabilities while continuing to grow our top and bottom lines.”
FansUnite continued to expand its U.S. footprint by participating in the launch of regulated wagering in North Carolina, generating strong operational results and furthering brand recognition as the premier live activation company. As part of the Company’s long-term strategy to continue diversifying revenue streams and mitigate the seasonality of North American sports, the Company increased revenue for the lines of the business outside of live activation.
The Betting Hero research segment expanded after signing contracts with multiple US based sportsbooks during the past twelve months. Continued competition within the sports betting industry led to an increase in demand for one-time, bespoke engagements as operators seek to gain competitive and consumer-level insights that might influence strategy and help to overcome mission-critical challenges. This continued diversification will contribute to mitigating seasonal effects on American Affiliate’s revenues.
The stock is up 14% at time of writing on the news.
The stock remains in its range with major support coming in at $0.03. Watch for a close above the $0.045 price level and this will lead to a breakout back to the $0.065 zone.