Sports betting and igaming operator and supplier FansUnite Entertainment posted a 22.5% year-on-year increase in revenue for the third quarter of its 2021 financial year, but higher spending led to a small increase in its net loss.
Total revenue for the three months through to September 30 amounted to CAN$580,024 (£340,457/€399,961/US$454,024), up from $473,600 in the corresponding period last year.
FansUnite did not publish the full details of its revenue performance but did reveal that it was helped in the quarter by a 19.1% increase in betting turnover to $10.6m.
The provider also noted a number of business highlights for the quarter, including that it was able to secure two licences from Great Britain’s Gambling Commission, to serve as a B2B technology provider and B2C operator in the market.
FansUnite also completed an oversubscribed brokered financing of approximately $25.0m to help expand operations and pursue M&A opportunities, while it expanded its teams with the appointment of Anna Smith as head of compliance and Michael Lee as vice president of gaming.
After the end of the quarter, FansUnite also entered into a definitive agreement to acquire the businesses and brands of American Affiliate, a business established by industry entrepreneur Chris Grove, for $58.2m.
Turning to spending, costs of revenue in Q3 were 63.3% up to $496,200, while operating expenses were also 19.1% higher at $3.1m.
This left an operating loss of $3.0m, compared to a $2.5m operating loss in the same period of last year. After accounting for $39,990 in financial income, FansUnite’s pre-tax loss was $3.0m, which was wider than the $2.4m lost in Q3 of 2020.
FansUnite paid $13,604 in tax but reported deferred taxes of $375,000, which, after also including $5,982 in positive foreign currency translation adjustment, resulted in a net loss of $2.6m, compared to $2.4m last year.
For the financial year to date, revenue for the nine months to the end of September was 226.9% higher at $2.6m.
Revenue costs were up 194.3% to $1.6m but operating expenses were 16.7% lower at $9.5m, leaving an operating loss of $8.5m, an improvement on $11.1m last year.
Financial income reached $74,467, leaving a pre-tax loss of $8.4m, shorter than $11.2m at the same point in 2020.
Tax payments were the same as in Q3, with $375,000 being deferred, and after accounting for a $48,726 loss from foreign currency translation adjustment, net loss for the period was $8.0m, compared to $11.2m last year.
“Q3 2021 was another strong quarter for FansUnite as we saw continued growth across all business units,” FansUnite chief executive Scott Burton said. “During the quarter, we successfully closed an oversubscribed brokered financing of approximately $25.0m, and despite typical seasonality in the sporting world in the summer months, we saw strong year over year revenue growth.
“After the quarter ended, we announced our largest milestone to date with the acquisition of American Affiliate. As part of our strategy to enter the US betting market, we believe American Affiliate will serve as a pillar of growth for us as we look to tackle one of the largest gambling landscapes in the world.”
