Luckbox expenses grow in Q3 as operator prepares for casino launch
After subtracting sales costs of CAD$66,960, net revenue for the quarter came to a loss of CAD$59,722 – down from CAD$53,654 in 2020.
Expenses for the quarter came to CAD$1.9m, up by 171.4% from last year. Consulting fees were the largest expense at CAD$407,134, followed by CAD$381,645 of salaries and director fees, and CAD$358,849 worth of share-based compensation.
Legal fees were CAD$278,643, administrative costs came to CAD$201,878, while advertising and marketing expenses totalled CAD$142,253.
Adding other expenses of CAD$32,181, net losses before tax came to CAD$1.9m. Factoring in CAD$4,572 of income tax expenses, net losses for the quarter came to CAD$1.92m – up 137.5%.
Luckbox CEO Thomas Rosander suggested that the company’s Q3 results have laid good foundations for the company’s intentions to launch a casino product, which it expects to do in Q4.
He said: “The team has been focused on enhancing our proprietary platform by building a superior business intelligence infrastructure, offering a unique and modern user experience tailored to the next generation of bettors, while ensuring maximum coverage of esports betting opportunities.
“I am delighted to say our efforts during Q3 have paved the way for the addition of casino, which is an important anticipated near-term revenue driver that we expect to be live in Q4. As a result, we will be in a position to launch our player acquisition efforts in Q1 2022, by starting meaningful marketing for the first time in the company’s history.”
Luckbox also mentioned the addition of David Conde as head of data as a Q3 highlight. During the quarter, the company also secured a sports betting partnership with Aspire Global-owned sportsbook provider BtoBet.