East Side Games Group (TSE:EAGR) Announces Earnings Results

East Side Games Group (TSE:EAGR) issued its quarterly earnings results on Thursday. The company reported C($0.05) earnings per share for the quarter, FiscalAI reports. The business had revenue of C$12.45 million during the quarter. East Side Games Group had a negative return on equity of 65.14% and a negative net margin of 30.75%.

Here are the key takeaways from East Side Games Group’s conference call:

• East Side Games Group said Q1 was focused on a strategic reset toward profitability and cash generation, including a significant reduction in user acquisition spend and a new emphasis on a 30-day return on ad spend.
• The company reported Adjusted EBITDA of CAD 1.74 million with a 14% margin, up meaningfully year over year in margin terms, which management said reflects a leaner and more profitable operating model.
• Revenue fell 32% year over year to CAD 12.45 million, and daily active users declined to 145,581 as the company intentionally cut spending to prioritize higher-quality cohorts.
• Direct-to-consumer revenue increased from 3% to 11% of revenue quarter over quarter, and the company said Google’s upcoming fee changes could add about CAD 0.5 million in annual incremental profit once compliant.
• New and existing live-service titles showed encouraging traction, including Trailer Park Boys Match with over 40% D1 retention in paid cohorts, while the company also said it remains on track to repay bank debt by the end of 2026 and has a private placement of up to CAD 3.6 million underway.

East Side Games Group Stock Performance

East Side Games Group stock traded down C$0.02 during mid-day trading on Friday, hitting C$0.09. The company had a trading volume of 117,036 shares, compared to its average volume of 56,387. The company has a market capitalization of C$6.93 million, a price-to-earnings ratio of -0.38 and a beta of 0.94. East Side Games Group has a 12-month low of C$0.08 and a 12-month high of C$0.70. The company’s fifty day moving average is C$0.17 and its 200-day moving average is C$0.26. The company has a current ratio of 0.89, a quick ratio of 0.91 and a debt-to-equity ratio of 27.95.

East Side Games Group Company Profile

ESGG is a leader in free-to-play mobile gaming, thrilling players with unforgettable experiences that spark lifelong fandom. Fueled by an entrepreneurial spirit, we are driven by creativity, flawless execution, and a laser-focused growth strategy. We develop and publish both original and licensed IP titles, license our cutting-edge GameKit(s) platforms, and strategically acquire studios or games to expand our family. Headquartered in Vancouver with around 120 talent-dense team members, we operate over a dozen titles under East Side Games (‘ESG’) and LDRLY (Technologies) Inc (‘LDRLY’).