Small Cap Gaming Company ESE Entertainment (TSXV: ESE) Beats Expectations With 417% Annual Revenue Increase And Record Gross Profit

Small-cap gaming technology company ESE Entertainment Inc. ESEENTEF has published its audited annual consolidated financial statements for the 2022 year. The report reveals significant financial growth in revenue and gross profit for the period, demonstrating the company's continued success in the fast growing video game technology sector.

For the three months ended October 31, 2022, the company reported revenue of $19.86 million, representing an impressive 218% increase from the same period in 2021. Meanwhile, the company's annual consolidated revenue for fiscal 2022 was $58.82 million, an outstanding increase of 417% from fiscal 2021.

ESE also reported an annual gross profit in Fiscal 2022 of $7.70 million, a significant 569% increase from the previous year's gross profit of $1.15 million. Furthermore,it showed a decrease in its adjusted EBITDA loss, from $3.50 million in fiscal 2021 to a much-improved $0.18 million in fiscal 2022.

The company currently trades at an approximately $30 million market cap on the Canadian and US markets. 

In Q4 2022, ESE Entertainment also appointed Andrea Lieuwen as the company's Chief Financial Officer. Ms. Lieuwen's extensive experience includes leadership and operations of gaming properties, contributing to a market capitalization of over $3 billion and operating 25 properties across Canada at the Great Canadian Gaming Corporation. ESE also entered into a $5 million contract to deliver technology and user acquisition services to a European video game developer and publisher.

"After a period of significant acquisition growth, I am very excited that ESE is now well positioned to focus all efforts on organic growth opportunities. With the successful integration of our portfolio assets, we have set a fundamental base for the company. Our core focus is on profitability and delivering shareholder value, and I look forward to leading ESE's financial strategy to ensure that we are financially sound and positioned for sustained success." said Andrea Lieuwen, ESE's Chief Financial Officer.

"We are thrilled to announce our 2022 audited financial results, which showcase our strongest performance to date with record-breaking revenue, gross profit, and improvement in adjusted EBITDA." said Konrad Wasiela, CEO of ESE.

"We set out many corporate goals in 2022, and I am proud to say we accomplished every single one of them. This is a testament to the relentless dedication and hard work from our world class team. Further, our financial discipline, technology, strategic investments and intellectual property will help us to further hone our operations and set the foundation for strong, sustainable organic growth going forward.”

With a recent analyst price target of $0.95 per share, ESE Entertainment is a company worth keeping an eye on. Their financial results and operational highlights in 2022 demonstrate the potential for strong, sustainable organic growth in the future. We will continue to monitor the company's performance and look forward to seeing their growth.

To read more, see the Company's profile on SEDAR at www.sedar.com.

All amounts are in Canadian dollars.

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