Real Luck Group, owner and operator of the Luckbox brand, was able to further reduce its net loss during the second quarter of its financial year following a fall in spending.
Although the business remained at a net loss by the end of the second quarter, the group was in a better position than at the same point in 2021, with revenue also increasing year-on-year.
However, with the group very much still in the building phase, and a lot of its focus being on developing its proprietary platform and other services, costs far outweighed revenue in the quarter.
Revenue for the three months to 30 June was CAN$13,855 (£9,066/€10,736/US$10,738), up 73.8% from $8,002 in Q2 last year. The group generates revenue through its Luckbox online casino, sports betting and esports betting operations, while it has partnerships in place with more than 50 affiliate sites.
Costs of revenue amounted to $48,500, while operating expenses for the period were 13.6% lower than the year before at $1.9m. This reduction was helped by a fall in share-based payments, which were more than halved to $236,519, though its main outgoing – salaries and director fees – was relatively level at $467,105.
After accounting for $9,878 in other net income, this left a pre-tax loss of $2.0m, compared to $2.3m last year. Real Luck paid $730 in income tax but also noted a $105,565 positive currency translation adjustment, meaning it ended the quarter with a $1.9m net loss, an improvement on $2.3m in 2021.
Looking at the first half and following a first quarter in which net loss was also reduced, the results for the six months to 30 June made for similar reading.
Group revenue increased more than four-fold to $32,468 and cost of sales was reduced by 13.4% to $126,237, while Real Luck was also able to lower operating expenses by 11.1% to $4.0m.
Other net income stood at $20,768, meaning pre-tax loss was $4.0m, compared to $4.7m at the end of H1 in 2021. Real Luck recovered $723 in tax and also accounted for a $160,776 positive currency translation adjustment, leaving a net loss of $4.0m, again an improvement on $4.7m last year.
