SPORTS BETTING
US – EBET halves size of workforce under new profitability plan
By William - 16 August 2022
EBET has shared a profitability plan designed to reach a positive EBITDA run rate which will see the number of employees and contractors at the provider fall by approximately 54 per cent.
The measures taken to enhance the profitability of its newly acquired iGaming assets, as well as its existing eSports products, include a realignment of resources to escalate and expand its focus to iGaming and optimising the efficiency of marketing campaigns.
Other measures include a reduction in the operating costs of the business and investment in non-revenue-generating esports products and the elimination of non-material contracts.
The revenue for the third quarter was approximately $18.2m with a gross profit of approximately $7.2m. As the company focuses on the profitability of the business, and continues to grow its EBIDTA positive run rate, it expects the revenue growth rate to decline in the short term, as it cuts unprofitable revenue.
As a result, the company does not expect to reach the previous fiscal 2022 revenue guidance of $70m, with no updated revenue guidance at this time.
“We are on a current run rate to achieve positive EBITDA this month and feel that we have reached a major inflection point for EBET’s business,” commented Aaron Speach, Chief Executive Officer of EBET.
“I have never been this excited about EBET’s future for our executive team and our shareholders. We are seeing significant scalable gains and look to continue the path to increase profitability and shareholder value.”
EBET intends to grow in new geographic markets, expanding to Brazil and anticipate approval and receipt of Netherlands and Ontario gaming licences in Q1 of next year.
Additionally, the company will be launching a major site upgrade for its flagship brand Karamba, which is expected to have a significant positive impact on new customer signups as well as retention.
The company will also be releasing its new affiliate platform, eaffiliates.com, which is designed to attract new affiliates as well as increase traffic from existing affiliates by providing detailed conversion tracking.
