FansUnite Entertainment (CSE: FANS) this morning reported its first quarter 2022 financial results. Notably, the firm managed to squeeze out positive operating cash flow during the quarter, despite posting a net loss for the period.
Revenue for the quarter amounted to $9.7 million, a substantial improvement over the $2.98 million in revenues recognized in the prior quarter. Gross margins for the period meanwhile came in at $5.9 million, a figure higher than last years revenue, which equates to a margin of 61%.
“Our revenue growth was supported by positive progress across all of our business units. Newly acquired American Affiliate continued to enter new U.S. betting markets and delivered outstanding results during one of the busiest quarters for North American sports while our B2B segment continues to gain traction with the launch of MoneyLine Sports,” said CEO Scott Burton on the results.
Despite the strong revenue increase, selling, general and administrative expenses also climbed substantially, hitting $11.8 million for the three month period, resulting in an operating loss of $5.9 million. After additional interest and other expenses of $3.3 million, the company posted a net loss of $9.2 million for the three month period.
The company did however manage to eke out positive operating cash flow of $0.5 million, which was offset by $5.5 million in negative investing cash flow, and negative $0.8 million in financing cash flow. The firm as a result saw its cash position decline from $14.0 million to $8.2 million over the three month period.
FansUnite last traded at $0.22 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
