Mr. Justin Kenna reports

GAMESQUARE HOLDINGS REPORTS SECOND QUARTER 2023 RESULTS

Gamesquare Holdings Inc. today released its financial results for the three and six months ended June 30, 2023.

"Throughout the second quarter we focused on completing the integration of the April, 2023, merger with Engine Gaming, while optimizing our cost structure and combining our enhanced offerings and talent. We removed an estimated $5-million of annualized operating costs during the quarter and we continue to expect to realize at least $8-million of total annualized cost savings by the end of the year as we drive efficiencies and cost synergies across our business. By combining leading marketing, creative and e-sports organizations with best-in-class data and technology assets, we have developed a differentiated platform that expands our capabilities and creates leading solutions for our global customers," said Justin Kenna, chief executive officer of Gamesquare.

"Our newly acquired market intelligence and AI driven technology assets significantly enhance the value of our marketing services by combining data into our commercialization strategies. This creates a powerful performance marketing platform that helps us improve our clients' customer acquisition costs by expanding the effectiveness of our influencers and our campaigns. As a result, we have seen both the number and average value of our pipeline increase over the past three months. In addition, we have recently closed multiple seven figure, multiyear deals with customers across the health care, automotive and CPG sectors," Mr. Kenna continued.

"I am excited by the opportunities we are pursuing as we enter the seasonally strong second half of the year, supported by strong closed revenue quarter to date and 60 per cent of annual revenue historically falling in the second half. As a result, we expect sales in the second half to be between $47-million and $52-million, which combined with first half pro-forma sales of $28-million are expected to produce full year 2023 pro-forma sales of between $75[-million] and $80-million. We also expect annual gross margin in 2023 to range between 30 per cent and 35 per cent, which combined with additional cost saving actions are expected to help us reach profitability in the fourth quarter," concluded Mr. Kenna.

Three months ending June 30, 2023, compared with June 30, 2022

• Revenue of $14,238,810, compared with $6,655,892;
• Gross margin of $4,068,174, compared with $3,017,161;
• Net loss of $4,095,166, compared with a net loss of $2,524,825;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $4,084,862, compared with a loss of $1,296,131.

Six months ending June 30, 2023, compared with June 30, 2022

• Revenue of $19,189,523, compared with $11,695,966
• Gross margin of $5,997,677, compared with $4,662,362
• Net loss of $8,453,439, compared with a net loss of $6,518,454
• Adjusted EBITDA loss of $6,440,697, compared with a loss of $4,038,303

Three months ending June 30, 2023, compared with pro forma March 31, 2023

• Revenue of $14,238,810, compared with $13,743,347;
• Gross margin of $4,068,174, compared with $4,167,983;
• Net loss of $4,095,166, compared with a net loss of $12,250,604;
• Adjusted EBITDA loss of $4,084,862, compared with a loss of $5,145,947.

Conference call details

Justin Kenna, CEO, Lou Schwartz, president, and Mike Munoz, chief financial officer, are scheduled to host a conference call with the investment community. Analysts and interested investors can join the call via the details provided herein.

Date:   Monday, Aug. 14, 2023

Time:  5 p.m. ET

About Gamesquare Holdings, Inc.

Gamesquare Holdings is a vertically integrated, digital media, entertainment and technology company that connects global brands with gaming and youth culture audiences. Gamesquare's end-to-end platform includes GCN, a digital media company focused on gaming and e-sports audiences; Cut+Sew (Zoned), a gaming and lifestyle marketing agency in the United States; Code Red Esports Ltd., a Unted Kingdom based e-sports talent agency; Complexity Gaming, a leading e-sports organization; Fourth Frame Studios, a creative production studio; Mission Supply, a merchandise and consumer products business; Frankly Media, for programmatic advertising; Stream Hatchet, for live streaming analytics; and Sideqik, a social influencer marketing platform.

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