Ebet set to prioritise iGaming profitability
To minimise losses, EBET will invest less in esports products and reduce its employee and contractor headcount by 54%
A profitability strategy has been presented by EBET Inc., formerly known as Esports Technologies, to achieve a positive EBITDA run rate starting from this month, August 2022.
In order to increase both the long-term and short-term profitability of its firm, EBET Inc. has started a corporate reorganisation strategy. To that end, a series of cost-saving initiatives have been initiated, including reducing the number of employees and contractors by 54%, drastically cutting back on UK marketing efforts, and eschew esports, the company’s former flagship vertical, in favor of high-margin online casinos.
Chief Executive Officer of EBET Aaron Speach commented saying “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,
“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.”
Although EBET has taken steps to limit its investment in esports goods that aren’t generating money, management hasn’t said whether its esports operations with Helix, ggCircuit, and EGL would be shut down or sold.
Despite the strategy change, EBET still supports esports and would like to expand the Gogawi brand internationally. However, this wouldn’t happen until the esports industry had grown and its fan base had moved into a higher-wage bracket spending more money on wagers.
The operator with a Global Nasdaq listing said that the series of implemented measures aim “to enhance the profitability of its newly acquired iGaming assets as well as its existing esports products” in a statement released ahead of its Q3 earnings call.
Karamba, Hopa, Griffon Casino, and Dansk777, the former white-label subsidiaries of Aspire Gaming that EBET acquired in 2021 for $75 million, will now be the center of a simplified firm that will concentrate on the commercial expansion of its iGaming portfolio.
EBET produced Q3 revenue results of $18.2 million and a projected gross profit of $7.2 million thanks to improved trading results. As it eliminates unprofitable business, the operator forewarned that it “expects the revenue growth rate to drop in the short term.”
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