Mr. Prit Singh reports

FANSUNITE REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

Fansunite Entertainment Inc. has filed its condensed consolidated interim financial statements and associated management's discussion and analysis (MD&A) for the three- and nine-month periods ended Sept. 30, 2023. All amounts are stated in Canadian dollars unless otherwise indicated.

Q3 fiscal 2023 earnings call details

Day:  Wednesday, Nov. 15, 2023

Time:  10 a.m. EST (7 a.m. PST)

Topic:  Fansunite's Q3 fiscal 2023 financial results

Registration:  on-line

Financial highlights for the third quarter of fiscal 2023:

• Total revenue for the three months ended Sept. 30, 2023, was $4.8-million, an increase of 12 per cent as compared with $4.3-million over the same period in the prior year.
• Gross margin for the three months ended Sept. 30, 2023, was 59 per cent, an increase of 9 per cent as compared with 50 per cent over the same period in the prior year.
• Gross profit for the three months ended Sept. 30, 2023, was $2.8-million, an increase of 27 per cent as compared with $2.2-million over the same period in the prior year.
• Total adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended Sept. 30, 2023, was $200,000, an increase of $1.5-million as compared with negative $1.3-million over the same period in the prior year.
• The company had net working capital of $1.5-million as of Sept. 30, 2023, as compared with negative $4.2-million as of Dec. 31, 2022.

Financial highlights for the first nine months of fiscal 2023:

• Total revenue for the nine months ended Sept. 30, 2023, was $17.2-million, a decrease of approximately 2 per cent as compared with $17.5-million over the same period in the prior year.
• Gross margin for the nine months ended Sept. 30, 2023, was 64 per cent, an increase of approximately 10 per cent as compared with 54 per cent over the same period in the prior year.
• Gross profit for the nine months ended Sept. 30, 2023, was $10.9-million, an increase of approximately 16 per cent as compared with $9.4-million over the same period in the prior year.
• Total adjusted EBITDA for the nine months ended Sept. 30, 2023, was $1.1-million, an increase of $2.3-million as compared with negative $1.2-million over the same period in the prior year.

Operational highlights for the third quarter of fiscal 2023

On Aug. 24, 2023, the company announced that it reached an agreement with DragonBet, a Welsh-based U.K. sportsbook, to migrate off the Chameleon Gaming platform on Sept. 3, 2023, as part of the company's strategy to streamline its business operations. The migration of DragonBet, combined with the sale of the company's Chameleon source code to Betr Holdings Inc. on May 8, 2023, completed Fansunite's transition away from business-to-business (B2B) platform licensing. As a result of this transition, the company expects to achieve annualized cost savings of approximately $7.8-million, which includes reductions in salary and selling, general and administrative costs.

"We are pleased to achieve continued growth as highlighted by our financial performance in the third quarter of 2023," said Scott Burton, chief executive officer of Fansunite. "With a focus on expanding our affiliate business, Fansunite reported substantial increases in our revenues and gross margins during Q3 of this year. These results reflect our strategy to focus on profitability while maximizing our cost-efficiencies in all areas of our business."

Growth outlook

The company intends to continue expanding its affiliate operations across North America via Betting Hero by entering new betting jurisdictions as well as growing its additional revenue streams, which include Hero Research and Hero Hotline. Furthermore, Fansunite will continue evaluating new opportunities to achieve cost-efficiencies across all business units without disrupting its revenue growth.

About Fansunite Entertainment Inc.

Fansunite is a global sports entertainment and gaming company, focused on the regulated and lawful sports betting affiliate market which includes customer acquisition, retention, support and reactivation. Fansunite has established itself as a leader in the North American affiliate market through its subsidiary, American Affiliate Co LLC (AmAff). AmAff is a North American omnichannel customer acquisition company, covering both retail and digital customer activation for sportsbooks, casinos, poker and fantasy sports platforms.

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