EEG, in its strategic update on October 16, highlighted its activities during the past fiscal year, offering insights into its financial progress.
The financial year ending on June 30, 2023, was a challenging one for EEG, following a turbulent 2021.
In October 2022, the company faced uncertainty as it defaulted on convertible notes worth $35.0 million, leaving its fate in the hands of a creditor.
By December, EEG contemplated abandoning the igaming sector and announced the departure of former CEO Grant Johnson.
The same month, it narrowly avoided delisting from the Nasdaq stock exchange.
January 2023 brought more changes as CFO and COO Daniel Mathews resigned from his positions, and former CEO Johnson initiated a lawsuit against EEG, alleging breach of his employment contract.
In February, EEG revealed the sale of its Bethard online casino and sportsbook business for €9.5 million.
Newly-appointed CEO Alex Igelman, in April, outlined EEG’s plans for B2C expansion, confirmed divestment strategies, and entered into an agreement to exchange a significant portion of its debt for company stock.
Total revenue for FY23 amounted to $23.0 million, compared to $58.4 million in 2022.
However, the cost of revenue decreased significantly, landing at $8.8 million, a 63.6% reduction.
Sales and marketing expenses saw the most substantial reduction, plummeting by 77.0% to $5.9 million.
General and administrative expenses for the year totaled $28.9 million, declining by 43.6%. The net loss for the fiscal year was $32.2 million, a substantial improvement from the $102.2 million loss reported in 2022.
Igelman expressed confidence in the company’s future, citing strategic decisions that will fortify EEG.
He explained, “We conducted a deep dive into our business, identifying operations and contracts that weren’t profitable, leading to decisive actions that have set us up for a promising future.
Although the restructuring came with one-time expenses, we are confident that the long-term advantages will significantly outweigh these costs.”
Igelman also noted an expected $4 million reduction in annual operating expenses and a reduction of total liabilities by approximately $51.8 million since January.
He emphasized EEG’s recent focus on developing initiatives related to esports and igaming offerings, stating, “We believe the company-wide initiatives we have undertaken this year will place us in a stronger financial position and at the forefront of the rapidly growing esports wagering market, which is poised to grow significantly by 2025.”
Igelman concluded, “As a result, I could not be more excited about the outlook for our business.”