Gaming Nation Inc. (TSX VENTURE: $FAN) Reports Fourth Quarter and Fiscal Year 2016 Financial Results
TORONTO, ON - March 24, 2017 (Investorideas.com Newswire) Gaming Nation Inc. (TSX VENTURE: FAN) ("Gaming Nation" or the "Company"), announced its financial and operational results for the fourth quarter and year ending December 31, 2016. Consolidated financial statements and Management Discussion & Analysis for the quarter and year ending December 31, 2016 can be found on SEDAR (www.sedar.com). All amounts are reported in Canadian dollars unless otherwise noted.
The Company, through 5050 Central, established multi-year partnerships with 23 new customers during Q4 of 2016 and renewed agreements with 21 clients. 5050 Central's recurring software licensing revenues increased by 20% year over year. 5050 Central also made substantial progress in its focus to expand into new markets through the development of new platform solutions, securing key hires in important sectors and ensuring the Company is prepared from a regulatory perspective to be first to market with new opportunities.
Fantasy Guru, the sports based information service business, continued to demonstrate strong growth during Q4 and fiscal 2016. Revenues increased by 50% in Q4 compared to Q4 of 2015 and 2016 fiscal revenues grew 60% compared to 2015 fiscal results. The Company launched a new premium service for daily fantasy sports participants providing content in all major sports through a subscription based business model similar to the company's traditional business. The service generated $1,100,000 in subscription sales in 2016 since its launch in September and has realized a 25% increase in the daily average spend by subscribers.
Pick Nation's business experienced challenges during fiscal 2016 as revenues decreased by approximately 13% compared to the same period in 2015. The decrease in revenue from the sports handicapping business is a direct reflection of the decrease in overall NFL wagering that is being experienced in the industry as well as a challenging NFL season related to television ratings and content downloads.
During Q4, Gaming Nation announced that it had entered into a definitive agreement to acquire BD Sport Group Ltd. ("BD Sport"), the market leader for stadium betting services in the United Kingdom. The acquisition provides Gaming Nation with a portfolio that includes 100% of the shares of BD Sport Ltd., BD Stadia Ltd. and BD Deportes SL. The transaction officially closed March 2, 2017.
"During Q4 Gaming Nation continued the trend to strategically focus on two key sectors of operations; software solutions for stadiums as well as the Gaming Nation's sports information content businesses. We are pleased with the results in the quarter and the progress during 2016. In 2017 we will remain committed to continuing to grow revenues and EBITDA across all our business lines while exploring strategic opportunities both in the form of partnerships or further acquisitions," stated Gaming Nation's President/CEO, Scott Secord.
The fourth quarter and fiscal year 2016 operating results ending December 31, 2016 of Gaming Nation include operations from the following reportable segments: electronic 50/50 raffle platform through 5050 Central Ltd and 5050 Central Delaware Inc. (collectively "5050 Central") and sports intelligence information though Guru Fantasy Reports, Inc. ("Fantasy Guru" & "Guru Elite") and Stevo Design, Inc. ("Pick Nation").
Q4 and Fiscal Year 2016 Financial Summary
- Consolidated revenue was $3.63 Million for the fourth quarter and $11.05 Million for year ending December 31, 2016
- Adjusted EBITDA was $1.01 Million for the fourth quarter and $2.07 Million for the year ending December 31, 2016
- Net loss from continuing operations was $5.78 Million for the fourth quarter and $9.39 Million for the year ending December 31, 2016
Financial Position as of December 31, 2016
- Cash of $10.00 Million
- Working capital as of December 31, 2016 was $11.48 Million
- Total assets of $63.10 Million
- Total liabilities of $8.49 Million
- Total equity of $54.61 Million
Conference Call Details
Gaming Nation will host an analyst/shareholder conference call on Thursday, March 23, 2017 at 8:00 a.m. ET to discuss its financial and operational results of its fourth quarter and fiscal year 2016. Scott Secord, CEO, and Blair McGibbon, CFO, will chair the call.
To access the conference call dial (647) 427-7450 or (888) 231-8191. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. A question and answer session for analysts will follow management's presentation.
A digital recording of the conference call will be available for replay two hours after the call's completion. The recording will be available until March 30th, 2017. To access the recording, please dial 1.855.859.2056 and the conference ID # 87518216.
About Gaming Nation Inc.
Gaming Nation Inc. (TSX VENTURE: FAN) provides technology and information platforms to the sports and entertainment industry. The Company's platforms include 5050 Central, an electronic real-time raffle system, BD Sport Group, providing in-stadium betting in the UK football market, and sports information websites Fantasy Guru, FantasyGuruElite and Pick Nation.
For more information, visit www.gamingnationinc.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Gaming Nation Inc.'s control, including the impact of general economic conditions, industry conditions, currency fluctuations, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although Gaming Nation Inc. believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Gaming Nation Inc. does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
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