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TORONTO, ON — October 1, 2018 — Enthusiast Gaming Holdings Inc. (TSXV: EGLX) (formerly Tova Ventures II Inc., the “Company”), today reported its unaudited and unconsolidated financial results for Enthusiast Gaming Inc. for the three and six months ended June 30, 2018.
The Company is pleased to report a significant increase in revenue as compared to the same period a year ago. Total revenue in Q2 2018 increased 757% to $2.6 million, compared to $300,000 in the same period in 2017. In addition, revenue showed strong sequential growth, up 28% from the previous quarter. For the six months ended June 30, 2018, revenue grew to $4.6 million, up from $360,000 in the same six month period in 2017. The Company is also pleased to report improved gross margins as a result of its continued focus on optimizing its advertising operations platform, realizing economies of scale and optimization within the Company’s advertising operations.
Expenditures have increased significantly both on a quarter to quarter basis and when compared to the same period in 2017, however, this increase aligns with the Company’s business plan and part of its overall strategy to significantly expand the Company’s operations.
“I am happy with our performance and growth during the second quarter of 2018. We continued to increase our top line as a result of significant organic growth within our publisher network, coupled by strategic acquisitions over the last year,” said Menashe Kestenbaum, founder and CEO of the Company. Mr. Kestenbaum continued, “we will apply the funds from our recently completed business combination to aggressively pursue further growth within these two areas to drive revenue growth.”
Enthusiast was incorporated in 2014 under the laws of the Province of Ontario. Enthusiast owns and operates an online network of websites devoted to video gaming and Canada’s largest video-gaming expo, EGLX. Between its online digital media properties, its network of partner websites, and video-gaming gaming expo, Enthusiast engages millions of video gaming enthusiasts worldwide.
You can find more information relating to Enthusiast Gaming on our website (enthusiastgaming.com) and on SEDAR (sedar.com).
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement.
Investors are cautioned that, except as disclosed in the Filing Statement any information released or received with respect to the reverse take-over may not be accurate or complete and should not be relied upon. Trading in the securities of the Corporation should be considered highly speculative.
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.
The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
For additional information please contact:
Gadi Levin, CFO
Julia Becker, Head of Investor Relations & Marketing