SOURCE: Gaming Nation Inc.

Gaming Nation Inc.

May 24, 2016 16:36 ET

Gaming Nation Inc. Announces Q1 2016 Financial Results

TORONTO, ON--(Marketwired - May 24, 2016) - Gaming Nation Inc. (TSX VENTURE: FAN) ("Gaming Nation" or the "Company"), today announced its financial and operational results for the first quarter ending March 31, 2016. Consolidated financial statements and Management Discussion & Analysis for the quarter ending March 31, 2016 can be found on SEDAR (www.sedar.com). All amounts are reported in Canadian dollars unless otherwise noted.

Q1 2016 Financial Highlights

The Q1/16 operating results ending March 31, 2016 of Gaming Nation include operations from the following reportable segments:

  • Electronic 50/50 draws platform through 5050 Central Ltd and 5050 Central Delaware Inc. (collectively "5050 Central")
  • Fantasy sport platform through Fantasy Feud Inc. ("Fantasy Feud")
  • Sports intelligence information though Guru Fantasy Reports, Inc. ("Fantasy Guru") and Stevo Design, Inc. ("Pick Nation")
  • Consolidated revenue for the quarter was $2.49 Million.
  • Net Loss for the quarter was $(1.90 Million).
  • Adjusted EBITDA for the quarter was $(0.10 Million).
  • Cash and short term investments as of March, 31 2016 was $15.1 Million
  • Working Capital as of March 31, 2015 was $12.1 Million

Q1 2016 Operational Highlights

Gaming Nation has signed 24 new multi-year 5050 Central partnerships, including the following major professional sports teams: Sacramento Kings, Houston Astros, Texas Rangers and San Jose Earthquakes. In addition, Gaming Nation has renewed several long-term agreements, including the Calgary Flames, St. Louis Cardinals, Boston Red Sox and the Calgary Stampeders.

Fantasy Feud has demonstrated continued revenue growth of 240% in Q1 2016 over the same quarter in 2015. The Company's decision in Q4 2015 to eliminate the majority of daily fantasy games in which guaranteed prize pools were awarded has resulted in a reduction of over $1.0 Million in losses for this segment in Q1 2016 vs Q4 2015.

Fantasy Guru and Pick Nation, Gaming Nation's subscription based information portals, have shown consistent operational results during Q1 as compared to the same quarter for the prior year.

Gaming Nation has also made a $4 million USD strategic investment by acquiring 25% equity stake in DMi Inc, a digital games publisher and developer focused on delivering NASCAR branded games, operating as Dusenberry Martin Racing ("DMR"). DMR holds the exclusive licensing rights to NASCAR racing games on all interactive entertainment platforms through 2022. The Management of Gaming Nation believes the continued growth in both egame/esports markets will further position DMi to expand its presence in the video game space and exploit further opportunities through Gaming Nation's fantasy platform and through 5050 Central's business with NASCAR.

Within 12-24 months, the Company anticipates working towards key milestones to increase revenue and profitability in each business segment and in turn deliver greater shareholder value. Scott Secord, President/CEO, of Gaming Nation, commented as follows:

"Management is pleased with the results of our first quarter in 2016. We continue to see strong growth in our 5050 Central business and we have taken the necessary steps to eliminate the vast majority of losses in our Fantasy Feud business. We look forward to continuing to execute our growth strategy in the coming quarters," stated Scott Secord President/CEO of Gaming Nation Inc.

About Gaming Nation Inc.

Gaming Nation Inc. (TSX VENTURE: FAN) provides technology and information platforms to the sports and entertainment industry. The Company's platforms include 5050 Central, an electronic real-time raffle system, daily fantasy games through Fantasy Feud and sports intelligence information services Fantasy Guru and Pick Nation.

For more information visit, www.gamingnationinc.com

Forward-Looking Statements

This news release contains certain forward-looking statements that reflect current views with respect to future events such as Gaming Nation outlook for future performance. Any such statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in those forward-looking statements. Forward-looking statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are implied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements.

Factors that could cause actual results or events to differ materially from current expectations, among other things, include risks related to market factors, and other factors discussed in materials filed with applicable securities regulatory authorities, including without limitation, matters discussed under Risk Factors and Uncertainties in the Company's Management's Discussion and Analysis for period ending March 31, 2016, available on www.sedar.com or that may be filed from time to time in the future. The forward-looking statements contained herein reflect Gaming Nation's current views with respect to future events, and except as required by law, Gaming Nation does not intend and undertakes no obligation to update any forward-looking statement to reflect, in particular, new information or future events or otherwise.

This release contains some measures that do not conform to IFRS, including Adjusted EBITDA. These measures are defined in the Gaming Nation Inc. Management Discussion & Analysis for Q1 2016 earnings results. These financial measures are used by many investors to compare companies, and Management believes that they are important measures in evaluating Gaming Nation. However, they are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. Therefore, it may not be comparable to similar measures presented by other issuers. Investors are cautioned that such measures should not be construed as alternatives to comparable IFRS measures determined in accordance with IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Contact Information
    Scott Secord
    CEO
    416-479-3873

    Joann Head
    Director of Investor Relations
    647-962-9600