Canadian firm Real Luck Group and its subsidiaries operating esports betting, sports betting and casino gaming under the Luckbox brand filed its first quarter 2022 financial results on the country’s portal for public companies System for Electronic Document Analysis and Retrieval (SEDAR).
For the three months ended March 31, 2022, Real Luck Group posted revenue of C$18,613 ($14,772), a figure that cannot be compared year-over-year due to the lack of revenue in Q1 2021.
“The first quarter of 2022 saw the Company continue to make vast improvements to our platform, as we strive to become the world’s number one esports betting destination.”Thomas Rosander, CEO, Real Luck Group
Improving Cost Effectiveness
The cost of generating the sales in the first quarter was C$63,832 ($50,660), a decrease of 27% from C$87,817 ($69,696) attributed to the cost of sales in the first quarter of 2021.
On the expenses front, Real Luck Group made significant improvements in the reported quarter, cutting its total by 12% to C$2.04 million ($1.62 million) as compared to the C$2.31 million ($1.83 million) in Q1 2021.
And while some costs like advertising, marketing and investor relations expenses were slashed almost in half to C$192,860 ($153,063) from C$382,906 ($303,894) in Q1 2021, others like general and administrative expenses more than doubled to C$322,961 ($256,318). In Q1 2021, general and administrative costs were C$135,619 ($107,634).
Fees paid for consulting services in Q1 2022 also increased as compared to the first quarter of 2021 – C$451,382 ($358,240) in Q1 2022 and C$315,889 ($250,705) in Q1 2021 – an increase of nearly 43%, while legal and professional fees posted a decrease of 39% to C$174,028 ($138,117) from C$286,376 ($227,283) in Q1 2021.
With decreasing expenses and generated revenue, Real Luck Group posted a decrease in the first quarter of 2022 net loss of 16% to C$2.01 million ($1.6 million) – for comparison, the net loss in Q1 2021 was C$2.4 million ($1.9 million).
Cash and cash equivalents decreased to C$12.44 million ($9.84 million) from C$14.4 million ($11.43 million) in Q1 2021.
“We have $12.5 million of cash and no debt and we are managing our cash prudently, giving us the necessary resources to execute our growth strategy.”Thomas Rosander, CEO, Real Luck Group
Key Operational Developments
Among the key operational developments in the reported quarter, the company outlined its partnership with Raketech Group signed in March, which is seen as the next step to increase player traffic, building on previous agreements with several key affiliate marketing networks.
Real Luck Group stated it ended the quarter with partnerships and agreements with more than 50 new player referral sites, paving the way for player traffic to its next-generation esports, sports and casino products, while the number of games at the end of the quarter reached 421 from six providers – an 8x increase as compared to the end of Q4 2021.