Enthusiast Gaming claims first profitable quarter in Q3 2024 financial results

Gaming media and entertainment company Enthusiast Gaming Holdings has revealed its Q3 2024 financial results, reporting its first-ever profitable quarter.

The company generated CAD$16.8 million (~£9.44m) in revenues with a gross profit of CAD$11.8 million (~£6.6m), and an adjusted EBITDA profit of CAD$100,000 (~£56,100). This marks an improvement of CAD$3.6 million (~£2.0m) from the same period in 2023.

While Enthusiast’s revenues are much lower compared to Q3 2023 (CAD$45.6 million) the company has been focusing on reducing operational inefficiencies and ‘strategic deprioritisation’ of low-margin video platform revenue. Its comprehensive loss for Q3 2024 is $7.3 million (~£5.76m).

The revenues were mainly generated by Media and Content, amounting to CAD$11.9 million. Esports and Entertainment revenue remained flat year-over-year at around CAD$1.9 million, while subscription revenue was reduced to $2.8 million (compared to $3.7 million, ~£2.92m, in the same period the previous year). Direct sales amounted to $4.8 million (~£3.79m).

Notably, operating expenses were reduced by nearly half to $12.7 million (~£10.02m), compared to $25.0 (~£19.72m) million in Q3 2023.

Enthusiast Gaming is an esports and gaming media holding company with several big-name esports assets in its portfolio. These include Luminosity Gaming, Call of Duty League franchise Vancouver Surge, and previously the Overwatch League franchise Vancouver Titans, as well as blockchain game EV.IO and multiple gaming websites.

Among the highlights of Q3, the company was able to secure $20 million (~£15.78m) in funding through a four-year loan. The company’s partnership with the NFL NFL Tuesday Night Gaming also reached 92.7 million impressions, marking a 467% year-over-year increase. Enthusiast has further plans to launch NHL Puck ‘N Play in Q1 2025 to engage fanbases.

Other highlights include web property The Sims Resource (TSR)’s continuous subscriber growth, Luminosity Gaming’s success in event organisation with the second invitational of Super Smash Bros, and Fantasy Football Scout’s partnership with the English Football League (EFL).

“This quarter we saw significant improvements across core financial and operational metrics, reaching profitability on an Adjusted EBITDA basis and advancing our balance sheet,” said Felicia DellaFortuna, CFO of Enthusiast Gaming. “With over $20 million in cost savings year-to-date and gross margin expansion to 70.3%, we’re positioned for scalable profitability and growth.”