Real Luck Group and its subsidiary companies providing esports betting, sports betting and online casino gaming under the “Luckbox” brand released today the financial results for the second business quarter of the year.
Laying the Foundations for the Future
TSX Venture Exchange-listed Real Luck Group and its subsidiaries filed on SEDAR, the electronic filing system for listed companies in Canada, its financial results for the quarter ended June 30, 2022, outlining the increase of 66% in games content as compared to Q1 2022 as key development during the quarter.
“During the second quarter of 2022, the Company finalized its platform in anticipation of the next phase of the Company’s growth – acquiring and monetizing players,” said Real Luck Group chief executive officer Thomas Rosander, focusing on the action the company has undertaken to support this transition by introducing “more games and features” to its online casino offering.
Rosander continued by outlining that the company’s online casino was designed as a high-margin vertical aiming to “bring engaging content” to its players and near-term revenue, and in line with the group’s ambition to “become a tier one operator and to respond to player demand,” Real Luck Group added more than 300 new casino games to prove that the business “can react and maneuver to the market.”
Quarterly Losses Continue
The official report filing did not contain information related to the key financial metrics investors rely on to have an understanding of the overall “health” of the business but according to Esports Insider, Real Luck Group reported a C$1.96 million (1.51 million) loss in the second quarter and a cumulative first-half loss of C$4.03 million ($3.1 million).
Notably, at the end of the reported quarter, the group had no debt and a cash balance of C$10.6 million ($8.17 million), which “together with continued onboarding and monetizing of players [and] new business initiatives” is enough for Rosander to believe that the business is more than capable to execute on its growth strategy despite recognizing that positive EBITDA is not expected before the second half of 2023.
Operational highlights of the group in the reported quarter included the launch of over 700 games on the Luckbox online casino from six providers, representing a 66% games content increase on a sequential basis, as well as new partnerships and agreements with more than 50 global player acquisition channels that are expected to increase player traffic to Luckbox’s all verticals.
Outside of the quarter, Real Luck Group appointed Daniel Sanders as Director of Marketing to support the next growth phase of the business by leveraging his extensive marketing and player acquisition experience gained from similar roles at Tencent Games and Red Bull.