Real Luck Group maintains that its business remains in a stable position, supported by a strengthened balance sheet of CAD $17.2 million (€11.5m) as the company moves to transform its flagship Luckbox esports wagering platform.
Luckbox 2021 interim trading results were published on the SEDAR registry of the Alberta Securities Commissions (ASC), showing that the firm realised revenues of CAD $8000 (€5,300) during H1 trading – down 3X on 2020 results of CAD $25,000.
The low revenue figure was generated off period cost of sales of CAD $146,000, as Luckbox posted a net income loss of CAD $4.6 million (€3.10m) for its year-to-date trading.
A breakdown of H1 expenses saw the company increase its advertising and marketing expenditure to CAD $580,000 from CAD $170,000 registered during 2020.
Further notable outgoings were attributed to consultancy fees totalling $640,000 (€430,000) and legal/professional costs of CAD $700,000 (€470,000).
Interim expenses further revealed that CAD $1 million had been outlaid by Luckbox in share-based compensations since the IPO of parent company Real Luck Box on Toronto TSX Ventures Exchange last December.
In a separate update, Real Luck Group Chief Executive, Thomas Rosander, who took leadership of the company last May, stated that H1 had been a ‘transformation period’ for Luckbox undertaking ‘intense and necessary’ changes to its proprietary platform.
He stated: “My priority has been to identify areas for improvement on the Luckbox platform, and I am pleased to say the team has made several technical improvements and formed new partnerships that we believe move us closer to generating long-term revenue growth in the booming esports betting sector, starting before the end of the year.”
Rosander underscored confidence in Luckbox achieving its enterprise objectives, in which the company has grown its balance sheet to CAD $17.2 million from 2020 accounts of CAD $3.8 million (€2.5m).
Major platform enhancements are expected as this summer Real Luck Group appointed Aspire Global to serve as lead systems provider for Luckbox – strengthening its sports betting offering and launching a casino vertical.
“Our balance sheet remains strong, with $17.2 million of cash and no debt, allowing us to continue executing our strategy to become the number one esports betting property.”