Luckbox posts $3M loss in H1 but increases product offering, remains free of debt as it targets expansion
Online gaming businessReal Luck Group, parent company of esports, sports, and casino gaming provider Luckbox, has shared its financial resultsfor the first half of the year. The company recorded a net loss of about CAD 4 million ($3 million) for the period, of which almost CAD 2 million ($1.5 million) was accumulated in Q2.
However, in terms of its product offering, the company concluded the period ended June 30 withover 700 games from six providers on the newly launched Luckbox online casino, an increase of over 66% in games content since the end of March 31, 2022.
Despite the losses, Luckbox remains free of debt and has a positive balance of CAD 10.6 million ($8.1 million), which CEO Thomas Rosander said could amount to "enough capital" to execute on the company's growth strategy.
"During the second quarter of 2022, the company finalized its platform in anticipation of the next phase of the company's growth- acquiring and monetizing players," Rosander also pointed out. "To support this transition, we continued to introduce more games and features to our online casino,a high-margin vertical designed to bring engaging content to our players and near-term revenue."
"Given our ambitious goals to become a tier one operator and to respond to player demand, we added over 300 games to our casino offering, proving that we can react and maneuver to the market to enhance our player experience," the CEO added.
Among highlights for the period, the company signed partnerships and agreements with more than 50 global player acquisition channels, designed to "increase player traffic to Luckbox's next-generation esports, sports and casino real-money betting products," the company stated in a press release.
In April, the business announced a new partnership with online casino supplier Microgaming to add more than 100 games to Luckbox’s casino, including branded titles such as Jurassic World, Game of Thrones, and Lara Croft. With the Microgaming content, Luckbox's casino now offers over 450 games for users to wager upon, the company says.
Subsequent to the period, the company announced the appointment of Daniel Sanders as The Director of Marketing to complete the leadership team. Sanders' previous positions include Senior Global Marketing Lead at Tencent Games and Head of Esports and Gaming Marketing at Red Bull.
Furthermore, the business transitioned from platform, product, and game content development to commencing player acquisition.
"Initial results during this next growth phase are promising, and with online casino forecasted to drive positive monthly EBITDA in second half 2023. This together with continued onboarding and monetizing of players, new business initiatives, and a balance sheet that has about CAD 10.6 million of cash and no debt, we believe that we have enough capital to execute on our growth strategy," the CEO concluded.
TSXV and OTC-listed Real Luck Group’s Luckbox offers real-money betting, live streams, and statistics on major esports, as well as sports betting and casino games, on both desktop and mobile devices. It is live in more than 80 territories worldwide and holds a B2C and B2B gambling license issued by the Isle of Man Gaming Supervision Commission.