Real Luck Group cuts losses in Q1 2022
There was no comparable revenue reported for Q1 2021. This year’s performance was aided by the expansion of the Luckbox-branded online casino, which ended the quarter with 421 games live.
The business also established partnerships and agreements with more than 50 affiliate sites, to drive traffic to its real-money esports betting, sports and casino products.
During this period, however, Real Luck said it was focused on developing its proprietary platform, meaning it expected minimal revenue for the three month period. This is set to change significantly, with the business now looking to ramp up player marketing to scale revenue in the coming year.
Cost of sales amounted to CAD$63,832 for the quarter, down 27.3% year-on-year. This resulted in a top-line loss of CAD$45,219, almost half of that in 2021.
Expenses totalled CAD$2.0m, a year-on-year fall of 12%. Salaries and director fees were the highest expense, adding up to CAD$465,098, a slight fall of 4.3%.
Consulting fees grew by 42.8% to CAD$451,382, while general and administrative expenses shot up by 138.1% to CAD$322,961.
The remaining CAD$797,414 came from other expenses, including legal and professional fees, depreciation and insurance.
After CAD$10,761 in additional expenses, Real Luck Group posted a Q1 operating loss of $2.0m, 13.7% less than in 2021.
An income tax benefit of CAD$1,453, reduced the operator’s net loss marginally, as did a favourable currency exchange rate. This ultimately meant the operator’s comprehensive loss from the quarter was down 16.1%, at CAD$2.0m.
“The first quarter of 2022 saw the company continue to make vast improvements to our platform, as we strive to become the world’s number one esports betting destination,” Thomas Rosander, CEO of Real Luck Group, commented.
“We have now introduced more than 400 games and products, including the newly launched online Luckbox casino, a vertical designed to bring engaging content to our players and near-term revenue to the business.”
Also during the quarter, Real Luck Group appointed Benn Timbury as chief operating officer and Bo Wanghammer to its board of directors, which Rosander said “strengthened” the company’s leadership team.