EBET Inc has initiated a corporate restructuring plan to improve the long and short-term profitability of its business.
In a statement announced ahead of its Q3 earnings call, the Global Nasdaq listed operator disclosed that it had undertaken “a series of measures to enhance the profitability of its newly acquired igaming assets as well as its existing esports products”.
Headline directives have seen EBET reduce its employee and contractor headcount by 54%, as the group “realigns resources to escalate and expand its focus to igaming”.
As previously reported, EBET has moved to reduce its investment in non-revenue-generating esports products. However, management did not disclose whether its esports ventures of Helix, ggCircuit and EGL would be terminated or sold.
Updating investors, EBET stated that measures undertaken had resulted in the company achieving a “positive EBITDA run rate beginning August 2022”.
A streamlined business will now focus on the commercial development of its igaming portfolio of Karamba, Hopa, Griffon Casino and Dansk777 – the former white-label subsidiaries of Aspire Gaming acquired by EBET in 2021 for $75m.
Improved trading results saw EBET generate Q3 revenue results of $18.2m, alongside an estimated gross profit of $7.2m. The operator warned that it “expects the revenue growth rate to decline in the short term, as it cuts unprofitable revenue”.
CEO Aaron Speach said: “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. We encourage everyone to join us on our conference call today to discuss all of our exciting developments.”