Roblox Game – Big Demand for Gaming Driving Incredible Earnings Growth
Gaming sales show no signs of slowing. In fact, in the second quarter of the year, U.S. video game spending jumped 2% to $14 billion year over year. In addition, according to Gamespot.com, “According to the NPD Group, overall consumer spending on video games for April to June 2021 totaled $14 billion, a small increase over last year’s massive numbers, which were boosted by the pandemic.” That’s substantial news for companies such as Enthusiast Gaming Holdings Inc. (TSX:EGLX)(NASDAQ:EGLX), Facebook Inc. (NASDAQ:FB), Amazon.com Inc. (NASDAQ:AMZN), Roblox Corp. (NYSE:RBLX), and Penn National Gaming Inc. (NASDAQ:PENN).
“Despite changing pandemic conditions across the country, video games spending remained strong in the second quarter of 2021,” said Mat Piscatella, games industry analyst at The NPD Group, as also quoted by Gamespot.com. “A year ago, in the second quarter of 2020, consumer spending on video games increased a remarkable 47% compared to the same period in 2019. Consumer spending has not only maintained the elevated levels reached a year ago but exceeded them in key areas such as hardware, mobile, and subscription spending.”
Look at Enthusiast Gaming (TSX:EGLX)(NASDAQ:EGLX), for example
Enthusiast Gaming Holdings Inc. just announced financial results for the three and six months ended June 30, 2021. All amounts are stated in Canadian dollars unless otherwise indicated.
Second Quarter 2021 Financial and Operating Highlights
– Revenue of $37.1 million for the three months ended June 30, 2021 vs the three months ended June 30, 2020 revenue of $7.0 million
– Gross profit of $8.0 million vs Q2 2020 gross profit of $3.2 million
– Direct advertising sales of $4.4 million compared to direct advertising sales of $0.6 million in Q2 2020
– Commenced trading of the Company’s common shares on the Nasdaq
– Raised gross proceeds of $60.1 million (USD$49.5 million) in a public offering
– Completed acquisitions of leading fan communities Tabstats and Icy Veins
– Paid subscribers of approximately 155,000 as at June 30, 2021, as compared to approximately 111,000 subscribers as at June 30, 2020
– Net and comprehensive loss of $12.8 million, net and comprehensive loss per share $0.11
– Esports division, Luminosity Gaming, ranked as the most watched team on Twitch for each month of the second quarter
“After listing on the Nasdaq, completing two major acquisitions and raising $60.1 million (USD$49.5 million) to further accelerate our accretive M&A strategy, this has been an exemplary quarter for Enthusiast Gaming,” commented Adrian Montgomery, CEO of Enthusiast Gaming. “We expect to see sequential revenue growth and margin improvements throughout the remainder of the year, driven by momentum in direct sales and our pipeline of acquisitions. While we continue to grow our subscription business from current and newly acquired properties, the game-changer for this vertical is expected to come from Project GG and its premium subscription offering, which will launch as an exclusive alpha to select gamers in late September. Our team’s ability to continue acquiring accretive properties, attract quality partners, and deliver fresh content to our fan communities continues to exceed expectations.”
Management will host a conference call and webcast on August 10, 2021, at 5:00 p.m. ET to review and discuss the second quarter 2021 results.
Conference call dial-in details:
North America (toll-free): + 1 877-300-8521
International: +1 412-317-6026
Conference ID: 10159262
A live webcast can be accessed at https://www.enthusiastgaming.com/investors/
If you are unable to join live, an archived recording of the webcast will be available on the investor relations section of the Enthusiast Gaming website.
Other related developments from around the markets include:
Facebook Inc. reported financial results for the quarter ended June 30, 2021. “We had a strong quarter as we continue to help businesses grow and people stay connected,” said Mark Zuckerberg, Facebook founder and CEO. “I’m excited to see our major initiatives around creators and community, commerce, and building the next computing platform coming together to start to bring the vision of the metaverse to life.”
Amazon.com Inc. announced financial results for its second quarter ended June 30, 2021. “Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic. At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud,” said Andy Jassy, Amazon CEO.
Roblox Corp. announced that it will report the company’s second quarter 2021 financial results, as well as its key metrics for the month of July 2021, after market close on Monday, August 16, 2021. The company will also conduct a conference call on Tuesday, August 17, 2021 at 5:30 AM PT / 8:30 AM ET to answer questions regarding its financial results. The live webcast of the conference call can be accessed from the Roblox investor relations website at IR.ROBLOX.COM. An online replay, as well as the transcript of the call, will be available on the investor relations website shortly following the call and will remain available for at least 12 months.
Penn National Gaming Inc. reported financial results for the three and six months ended June 30, 2021. Jay Snowden, President and Chief Executive Officer, commented: “Penn National delivered a strong second quarter that exceeded our pre-announced results from June 24, 2021. For the second quarter ended June 30, 2021, Penn National generated revenues of $1.55 billion, at the high end of our pre-announced range of $1.45 billion to $1.56 billion while Adjusted EBITDAR of $586.6 million exceeded the high end of our $540 million to $580 million range. Compared to Q2 2019 pro forma results, revenues increased 13%, Adjusted EBITDAR grew 38% and Adjusted EBITDAR margins increased 694 basis points. The strong results were driven by exceptional performance across our portfolio of core gaming business properties. Contributions from Barstool Sports, the media company, were also positive. Further, we saw strong revenue growth across our Penn Interactive segment, which operated near breakeven for the quarter despite being live in only four states.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Enthusiast Gaming Holdings Inc. by Enthusiast Gaming Holdings Inc. We own ZERO shares of Enthusiast Gaming Holdings Inc. Please click here for full disclaimer.
Roblox Game – Big Demand for Gaming Driving Incredible Earnings Growth
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