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East Side Games Group Reports Second Quarter 2022 Financial Results

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Q2 turnover of $29.7Man increase of 32% compared to the same period last year

Announced offer from normal course publisher for up to 4.1 million shares

VANCOUVER, BC, Aug 11, 2022 /CNW/ – East Side Games Group (TSX: EAGR) (OTC: EAGRF) (“ESGG” or the “Company“), today announced its second quarter financial results June 30, 2022. All amounts are stated in Canadian dollars on an IFRS basis unless otherwise indicated.

“Q2 was a solid quarter with 32% growth over the prior year. Total revenue for 2022 so far has been: $65.3 million, an increase of 43% year-on-year. Excluding one-time sales items in the first quarter, the second quarter was down about 15% from the first quarter of this year, in line with industry trends. RuPaul’s Drag Race superstar, which launched on October 25, 2021 and “The office: somehow we manage, launched at the end of January this year in partnership with Universal Games and Digital Platforms, continue to perform.” Jason BaileyCEO of ESGG.

“Our core portfolio of active titles also performed during the quarter. These titles continued to be the EBITDA drivers. This foundation pays for new title development, GameKit R&D, as well as operating cash flow.” Bailey said: “Given the range of titles we plan to launch in the second half of this year and early 2023, including supermarquee titles Star Trek Below Deck and doctor who we expect to lean in and invest heavily in growth, which will result in lower EBITDA in the near term, but sets us up for a spectacular 2023 and beyond.”

“Today, as the board of directors, we also announced a share repurchase program and I believe that the market price of the company’s common stock does not reflect the inherent value of the company,” said Mr. Bailey.

Three and six months ended June 30, 2022 Highlights:

  • Revenue in the second quarter of 2022 was $29.7 millionan increase of 32% from Q2 2021 sales of $22.5 million. For the six months ended June 30, 2022turnover was $65.3 millionan increase of 43% from the six months that ended June 30, 2021.
  • Cash for the company at June 30, 2022 used to be $9.3 million as compared to $9.2 million Bee December 31, 2021.
  • Daily active users in Q1 were 347K and monthly active users were: 1.35M. Average revenue per daily active user was $0.93.
  • The Earnout Milestone for 2022 has been achieved and paid in the first quarter of 2022 if $10 million in cash and $10 million in shares under the Share Purchase Agreement. The Earnout milestone of 2023 $20 millionpreviously accrued was reversed in the second quarter of 2022 due to uncertainty in meeting the $150 million revenue target.
  • on August 11, 2022the Company announced its intention to repurchase up to 4,076,819 shares under its NCIB.
  • During the first quarter of 2022, the company expanded its operating credit facility from: $3.5 million until $7.1 million increasing its general credit facilities to: $17.1 million. During the second quarter of 2022, the company added a $10 million acquisition line for which a portion can be used in its NCIB. Bee June 30, 2022the company had $0.3 million in debt.
  • Adjusted EBITDA Q2 2022 was $0.6 million (Q2 2021 – $2.6 million) and so far Adjusted EBITDA was $3.6 million (YTD 2021 – $5.3 million).
  • Net income Q2 2022 was $17.3 million (Q1 2022 – $0.7 million) and so far the net income has been $17.9 million (YTD 2021 – $0.4 million). Net income for the three and six months ended June 30, 2022 was mainly due to the reversal of the contingent payment.
  • Added four new genres to the core Game Kit, Merge, Match, Blitz and Master offerings, each of which has collaboration agreements.
  • Signed numerous unannounced Super MARquee IP agreements as well as multi-game development agreements with GameKit partners.
  • Soft launched Star Trek Lower Decks, Doctor Who, Milk Farm Tycoon, Trailer Park Boys Merge, Bud Farm Munchie Match and others.

Certain information provided in this press release is drawn from the company’s consolidated financial statements (the “Financial Statements”) and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2022 and should be read in conjunction with these. An investor can only properly analyze this information in the context of the extensive information and disclosures in the financial statements and MD&A. The financial statements and MD&A can be found under the company profile on SEDAR and EDGAR.

Webcast and Conference Call Information

The company will hold a conference call to discuss its performance with the investment community at: 2:00 p.m. PT Today. Related earnings information can be found on the East Side Games Group website at:

Webcast and conference call details:

Webcast URL:
Toll-Free: +1 (888) 440-2009
International dial-in number: +1 (438) 803-0546
Conference ID: 8631585

A replay is available from 6:30 a.m. PT August 12, 2022 until September 11, 2022 by calling +1 (800) 770-2030 or +1 (647) 362-9199 and entering the conference ID 8631585.


East Side Games Group (formerly known as “LEAF Mobile Inc.”) is a leading free-to-play mobile game group. Through our proprietary Game Kit software platform, we empower creators to successfully deliver memorable mobile gaming experiences that keep players engaged every day. We publish a diverse portfolio of original and licensed mobile IP games, including: The Office: Somehow We Manage, RuPaul’s Drag Race Superstar, Bud Farm Idle Tycoon, Cheech & Chong Bud FarmIt’s Always Sunny: The Gang Goes Mobile, Trailer Park Boys Greasy Money and other IP-based and wholly owned properties.

Additional information about the company remains available under its legal name, LEAF Mobile Inc., at:

Forward-looking information

Certain statements in this press release are forward-looking statements, which reflect management’s expectations with respect to the proposed transactions described herein. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that could cause actual results, performance or developments to differ materially from those in the statements. There can be no assurance that any of the events foreseen in the forward-looking statements will occur or, if they do, what benefits the company will derive from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions that may prove incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by forward-looking statements, including factors beyond the company’s control. These forward-looking statements are made as of the date of this press release.

SOURCE East Side Games Group

For more information: Media inquiries: [email protected]; Investor Relations: [email protected]; Suite 909 – 510 Burrard Street, Vancouver, BC, V6C 3A8



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