As the company seeks to revamp its flagship Luckbox esports wagering platform, Real Luck Group insists that its business remains healthy, backed by a reinforced balance sheet of CAD $17.2 million (€11.5 million).
Luckbox 2021 interim trading statistics were disclosed on the SEDAR website of the Alberta Securities Commissions (ASC), revealing that the firm earned CAD $8000 (€5,300) in H1 trading, down 3X from the CAD $25,000.
Luckbox reported a net loss of CAD $4.6 million (€3.10 million) for its year-to-date trade, which was created off period cost of sales of CAD $146,000.
According to a breakdown of H1 spending, the company spent CAD $580,000 on advertising and marketing, up from CAD $170,000 in 2020.
Consultancy fees of $640,000 (€430,000) and legal/professional charges totaling CAD $700,000 (€470,000) were also significant outlays.
Luckbox has also spent CAD $1 million in share-based compensations since the IPO of parent company Real Luck Box on the Toronto TSX Venture Exchange last December, according to interim costs.
In a separate update, Thomas Rosander, the business’s new CEO who took over in May, noted that H1 had been a “transformation period” for Luckbox, with the company making “intense and necessary” modifications to its proprietary platform.
He stated: “My priority has been to identify areas for improvement on the Luckbox platform, and I am pleased to say the team has made several technical improvements and formed new partnerships that we believe move us closer to generating long-term revenue growth in the booming esports betting sector, starting before the end of the year.”
Rosander expressed confidence in Luckbox’s ability to meet its business objectives, noting that the company’s balance sheet has risen to CAD $17.2 million from CAD $3.8 million (€2.5 million) in 2020.
Major platform changes are due this summer, as Real Luck Group named Aspire Global as Luckbox’s principal systems vendor, bolstering the company’s sports betting offering and creating a casino vertical.
“Our balance sheet remains strong, with $17.2 million of cash and no debt, allowing us to continue executing our strategy to become the number one esports betting property.”