An anonymous director reports

EAST SIDE GAMES GROUP REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

East Side Games Group Inc. has released financial results for the first quarter of 2024. All amounts are stated on an international financial reporting standard basis unless otherwise indicated.

The company is delighted to announce a strong start to 2024, with revenue of $20.8-million and adjusted earnings before interest, taxes, depreciation and amortization of $4.1-million, representing an impressive 19.65-per-cent margin. This performance underscores the company's commitment to prioritizing profitability and building on the momentum generated from the past year's restructuring.

Notably, the first quarter also marked the worldwide release of the IdleKit-based mobile game AEW: Rise to the Top. This has set the stage for an exciting year ahead for East Side Games within the idle genre, as well as new MatchKit-based games. In 2023, East Side Games launched the Match-3 game, Bud Farm Munchie Match, which exceeded industry standards with over 60-per-cent day-one player engagement and day-30 retention exceeding 15 per cent. Building on its success, East Side Games has launched Cheech & Chong's: Kush Kingdom, available to download today globally from the App Store and Google Play.

East Side Games is also thrilled to announce its collaboration with Hasbro on the coming mobile game Power Rangers Mighty Force, set to launch in second quarter. The game is currently available for prereg and preorder. The company believes that the iconic Power Rangers franchise, combined with East Side Games' classic idle mobile gameplay mechanics, will resonate strongly with fans and players alike, driving engagement and monetization opportunities. Additionally, an IP Match-3 game is slated for a soft launch in second quarter, further diversifying East Side Games' portfolio.

East Side Games remains dedicated to creating compelling Internet protocol-driven games that resonate with engaged and passionate audiences.

Three months ended March 31, 2024, financial highlights:

• For the quarter ended March 31, 2024, revenue was $20.8-million.
• Q1 2024 adjusted EBITDA was $4.1-million, and adjusted EBITDA margin was 19.65 per cent.
• Cash flow for the company for the quarter ended March 31, 2024, increased by $2.05-million, ending at $7.25-million.
• Daily active users in first quarter were 228,000, with an average revenue per daily active user of 99 cents.
• On Nov. 14, 2023, the company announced a renewal of its normal course issuer bid, authorizing the company to purchase 4,076,819 of its shares. Through March 31, 2024, the company purchased 1,258,019 shares at an average price of 76 cents. The company continues to buy back stock as restrictions allow.

Certain information provided in this news release is extracted from the consolidated financial statements and management's discussion and analysis of the company for the quarter ended March 31, 2024, and should be read in conjunction with them. It is only in the context of the fulsome information and disclosures contained in the financial statements and MD&A that an investor can properly analyze this information. The financial statements and MD&A can be found under the company's profile on SEDAR+ and EDGAR.

Webcast and conference call information

The company will hold a conference call to discuss its performance with the investment community at 2 p.m. PT on May 8, 2024. Related earnings release materials can be found on the East Side Games website.

Webcast and conference call details

A webcast will be available.

Toll-free dial-in number:  1-800-717-1738

Local dial-in number:  1-289-514-5100

Conference ID:  15180

A replay will be available by dialling 1-888-660-6264 or 1-289-819-1325 and entering passcode 15180 followed by the number sign.

About East Side Games Group Inc.

East Side Games is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty. Its studio group entrepreneurial culture is anchored in creativity, execution and growth through licensing of its proprietary Game Kit software platform that enables professional game developers to greatly increase the efficiency and effectiveness of game creation in addition to organic growth through a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, Star Trek: Lower Decks -- The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who: Lost in Time, RuPaul's Drag Race Superstar, AEW: Rise to The Top, Cheech and Chong Bud Farm, and Trailer Park Boys: Grea$y Money.

It is headquartered in Vancouver, Canada, and its games are available worldwide on the App Store and Google Play.

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