Favorable August Results Show EBET’s Strategy Works

Engaging and unique esports wagering experiences provider EBET (formerly Esports Technologies) has been working hard to curb its net loss and boost AEBITDA. The company reported major progress with losses plummeting throughout July and August.

EBET’s Recorded Significantly Lower Losses

According to EBET, it only lost $3.8 million during the two months. Meanwhile, adjusted EBITDA remained at roughly the same levels.  For reference, the earlier quarter saw the company lose a whopping $9 million and record a negative AEBITDA of $4 million.

EBET attributed the results to its winning strategy to focus on higher-margin betting products and eliminate non-material contracts. In addition, the company has been actively trying to reduce its operating costs. For example, the esports wagering company recently cut its workforce in half to reduce expenses and improve profitability. A whopping 54% of the company’s workers were laid off, leaving the company with a much smaller but more streamlined team.

The latter decision came after the company posted its Q2 results, which demonstrated that revenues skyrocketed by 166% but were offset by millions in EBITDA losses.

The Company Wants to Generate More Value for Its Shareholders

Aaron Speach, chief executive officer at EBET, commented on the company’s financial results. He noted that the last two months demonstrated the significant progress EBET has made. This, according to the CEO, is attested by the improved net loss and adjusted EBITDA.

Speach commended his team for the progress and said that he is glad to see the company’s loss reduction plans work.

I’m proud that the team was able to achieve such a massive turnaround in such a short period of time, as August was our first month implementing our new profitability plan. 

Aaron Speach, CEO, EBET

The chief executive also noted that the new results fill him up with optimism about EBET’s shareholders. He explained that the company was able to create shareholder value despite the financial headwinds and the difficult global situation. This, in itself, shows that EBET is poised to grow in spite of the challenges.

Speach concluded that EBET will now focus on its best and most profitable betting products as it continues to look for more traffic-generating opportunities and strategic partnership deals. Once again, the CEO noted that EBET will do everything in its power to grow and generate more value for its investors.

This spring, Esports Technologies rebranded as EBET to better communicate its vision to customers and shareholders. The company, which was previously exclusively focused on esports, has now decided to expand across other betting verticals as well.