Mr. Prit Singh reports

FANSUNITE REPORTS FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS

Fansunite Entertainment Inc. has filed its consolidated audited financial statements and associated management's discussion and analysis (MD&A) for the financial year ended Dec. 31, 2023 (fiscal 2023). All amounts are stated in Canadian dollars unless otherwise indicated.

Earnings call registration details

Day:  Tuesday, April 2, 2024

Time:  10 a.m. EST (7 a.m. PST)

Topic:  Fansunite's fiscal 2023 financial results and growth outlook for the remainder of 2024

Register:  on-line registration

Fourth quarter fiscal 2023 financial highlights:

• Total revenue for the three months ended Dec. 31, 2023, of $6.54-million, an increase of 18 per cent when compared with the same period in the prior year (Dec. 31, 2022: $5.55-million);
• Gross margin for the three months ended Dec. 31, 2023, of 60 per cent, compared with 62 per cent over the same period in fiscal 2022.

Fiscal 2023 financial highlights:

• Total revenue of $23.72-million, an increase of approximately 3 per cent over 2022;
• Gross margin of $14.88-million (63 per cent) as compared with $12.83-million (56 per cent) for 2022;
• Repayment of $5.51-million of bank indebtedness;
• Direct digital activation brand Props.com contributed revenue of $237,000 in fiscal 2023, a 402-per-cent increase when compared with $47,000 in fiscal 2022.

2023 operational highlights:

• Throughout 2023, Fansunite initiated a number of strategic steps to become cash flow positive by the end of the year. These included the sale of BetPrep, McBookie and the Chameleon source code sale to Betr Holdings.
• With the asset sales, the company anticipated annualized cost savings of approximately $7.8-million, including reductions in salary, and selling, general and administrative costs.
• On March 15, 2023, Fansunite closed a non-brokered private placement, issuing 37,976,242 units at eight cents per unit, generating gross proceeds of $3.04-million. Each unit comprised one common share and one common share purchase warrant, allowing the holder to purchase one common share at 12 cents per warrant share for 36 months following the offering's closing date.
• Fansunite and its subsidiaries received nominations in six award categories at the 2023 EGR North America Awards. Betting Hero, the company's customer acquisition, retention and development brand, earned recognition in three categories:
  • Employer of the year;
  • Acquisition and retention partner of the year;
  • Customer onboarding partner of the year.

"After obtaining additional capital from strategic resources, divesting of cash burning assets, repaying debt and focusing on our affiliate business, we're positioned to generate strong, sustainable margins and cash flow," said Scott Burton, chief executive officer of Fansunite. "As we close the chapter on this transformative year, where over $7.8-million in annualized cost savings are anticipated, we turn our attention to the rest of 2024 with a commitment to build off this momentum to deliver continued growth and positive results."

About Fansunite Entertainment Inc.

Fansunite is a global sports entertainment and gaming company. Its business is 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 or American Affiliate). AmAff is a North American omnichannel customer acquisition company, covering both retail and digital customer activation for sports books, casinos, poker and fantasy sports platforms.

Non-IFRS (international financial reporting standards) financial measures

This news release refers to certain non-IFRS measures. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is not a recognized performance measure under IFRS. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable with similar measures presented by other issuers. Adjusted EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization, share-based payments expense, and non-recurring impact transactions, if any. Adjusted EBITDA is included as supplemental disclosure because management believes that such measurement is useful to securities analysts, investors and other interested parties in evaluating operating performance by presenting the results of the company, excluding the impact of certain non-operational items and certain non-cash and non-recurring items, such as share-based payment expense. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net income (loss). Readers are cautioned that these measures should not be construed as an alternative to measures determined in accordance with IFRS as an indication of the company's performance.

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