TORONTO, ON--(Marketwired - November 21, 2016) - Gaming Nation Inc. (TSX VENTURE: FAN) ("Gaming Nation" or the "Company"), today announced its financial and operational results for the third quarter ending September 30, 2016. Consolidated financial statements and Management Discussion & Analysis for the quarter ending September 30, 2016 can be found on SEDAR (www.sedar.com). All amounts are reported in Canadian dollars unless otherwise noted.
Gaming Nation is pleased to report that through its subsidiary 5050 Central they have reached agreements with 32 new clients, including the Los Angeles Kings, Anaheim Ducks, and Los Angeles Lakers. 5050's recurring software licensing revenues for Q3 increased 16% compared to the same period for the prior year and 21% YTD. In addition, 5050 Central's business development relationship with BD Sport has started to produce results as the Company has deployed its platform with 6 UK based sport teams.
Fantasy Guru, the sports based information service business, has also demonstrated strong growth. In Q3, the Company launched Fantasy Guru Elite providing daily fantasy content in all major sports through a subscription based business model. The service generated $263,000 of revenue in September, its first month of operation. Gaming Nation is pleased to announce that Fantasy Guru Elite is substantially above internal YTD revenue projections and has realized a 25% increase in the daily average spend by subscribers since its launch.
Pick Nation's business experienced challenges during Q3 as revenues decreased 31% compared to the same period in 2015 while YTD revenues are flat. The decrease in revenue from the sports handicapping business is a direct reflection of the decrease in overall NFL wagering that is being experienced in the industry.
On August 25, 2016, Gaming Nation announced that it had sold the customer list of Fantasy Feud to Fantasy Aces Daily Fantasy Sports Corp in exchange for cash and shares valued at $454,250. Consequently, the company has discontinued the operations of this business segment. This decision has resulted in a monthly savings of approximately $100,000.
"We are pleased with the results in the quarter and believe we have taken the necessary steps to continue to focus on the profitable businesses within Gaming Nation. The sale of certain assets of our Fantasy Feud business eliminated any further cash burn allowing the Company to operate with three cash flow positive entities. The growth in our new service, Fantasy Guru Elite has been outstanding as revenues have dramatically exceeded expectations and our 5050 Central business doubled its EBITDA during Q3 compared to the same period last year," stated President/CEO Scott Secord.
The Q3/2016 operating results ending September 30, 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"), and Sports Intelligence Information though Guru Fantasy Reports, Inc. ("Fantasy Guru") and Stevo Design, Inc. ("Pick Nation").
Q3 2016 Financial Summary
- Consolidated revenue was $2.94 million for the quarter and $7.41 million for nine months ended September 30, 2016
- Adjusted EBITDA was $0.97 million for the quarter and $1.05 million for nine months ended September 30, 2016
- Net profit was $0.05 million for the quarter and the company incurred a net loss of $(4.05) million for nine months ended September 30, 2016
- Working capital as of September 30, 2016 was $10.6 million
Financial Position as of September 30, 2016
- Cash of $10.2m
- Total assets of $70.6m
- Total liabilities of $8.9m
- Total stockholders' equity of $61.7m
Conference Call Details
Gaming Nation will host an analyst/shareholder conference call on Tuesday, November 22, 2016 at 8:00 a.m. ET to discuss its financial and operational results of Q3 2016. Scott Secord, CEO, and Blair McGibbon, CFO, will chair the call.
To access the conference call dial (647) 427-7450 or (888) 231-8191. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. A question and answer session for analysts will follow management's presentation.
A digital recording of the conference call will be available for replay two hours after the call's completion. The recording will be available until November 29th, 2016. To access the recording, please dial 1.855.859.2056 and the conference ID # 9515728.
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, and sports information websites Fantasy Guru, FantasyGuruElite and Pick Nation. The head office of Gaming Nation is located at 400 -- 50 Minthorn Blvd., Thornhill ON L3T 7X8.
For more information visit, www.gamingnationinc.com
Neither the 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.
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Gaming Nation Inc.'s control, including the impact of general economic conditions, industry conditions, currency fluctuations, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although Gaming Nation Inc. believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Gaming Nation Inc. does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.