This week, British Columbia-based gambling firm, FansUnite Entertainment published its financial highlights for the three- and six-month periods ending on June 30, 2023. During Q2, the company recorded some impressive achievements, including hitting total revenue of CA$5.3 million, which was a 14% improvement over the same quarter but in 2022.
As an international sports entertainment and gambling company, the B.C. corporation is focused on the regulated sports betting affiliate market. Its offerings contain customer acquisition, retention, support and reactivation. Via its subsidiary American Affiliate Co LLC, the firm provides customer activation for online and retail sportsbooks, casinos, poker and fantasy sports platforms.
Q2 and First Six Months of 2023
On top of the total proceeds of CA$5.3 million, in Q2, the B.C. gambling leader also reported a gross margin of CA$3.3 million or 62%. This was an impressive 70% increase in comparison to the CA$2 million or 41% from Q2 of 2022. EBITDA reached CA$4.3 million for the fiscal second quarter, which was an increase of CA$15.3 million in comparison to the CA$11 million in 2Q22.
For the six-month period ending on June 30, 2023, the company reported revenue of CA$13.03 million, which was slightly less than the same period in 2022 when it reached CA$13.23. Meanwhile, for the said period gross margin was estimated to be CA$8.25 million. This was an improvement of the CA$7.3 from the same six months but in 2022.
Some of the Operational Highlights
The gaming firm was quite busy in the first six months of 2023, as in early May 2023, it inked a definitive agreement to sell an arm's length third party all of the shares in its wholly owned subsidiary McBookie Ltd. The latter is a Scottish private limited company which was sold by the B.C. firm for CA$5.5 million in cash, translating to a win of CA$4.4 million.
A week later the gaming company also announced the signing of a definitive asset purchase, through which it sold the source code related to its Chameleon Gaming Platform to Betr Holdings Inc. The deal was reported to be worth close to CA$10 million. In June, the company reported that it got approval from the Toronto Stock Exchange to renew its normal course issuer bid.
Gaining Access to Ontario
FansUnite is one of the many private gambling companies that has made its way into Ontario's regulated market for online gambling and sports betting. Its entry was announced in March 2022 and is now a fully registered supplier of sports betting and internet gaming under the Alcohol and Gaming Commission of Ontario. AGCO and iGaming Ontario are overseeing the iGaming sector.
A few months after its Ontarian debut, a subsidiary of the B.C. gambling firm, Betting Hero, published a report on the province's grey market. The study discovered that 51% of Ontario's sports bettors used grey market online sportsbooks before the launch of the provincially regulated market. It has also found that 25% of local bettors are willing to try a new sports betting app due to promotions.
Source: “FansUnite Reports Second Quarter 2023 Financial Results” FansUnite, August 14, 2023