The monthly dividend was payable in December. However, Esports Entertainment Group (EEG) has announced that it will suspend the dividend payment. This move is aimed at freeing up capital for reinvestment in the business, which will ultimately create greater value for shareholders in the long run. According to the CEO, Alex Igelman, the company believes that reinvesting the capital will generate a higher return on investment for shareholders. EEG’s management and board of directors will closely monitor the company’s financial performance to determine the appropriate time to reinstate the dividend.
Esports Entertainment Group (EEG) experienced a challenging first quarter with a significant decline in revenue. The Q1 revenue dropped by 71.9% to $2.7 million due to the sale of its Bethard business earlier in the year. The sale of the Bethard online casino and sportsbook business, completed in February, led to the winding down and liquidation of Argyll entities. As a result, there were no revenue-producing operations in December, impacting year-on-year comparisons. Although costs were reduced due to the sale and winding down, the net loss still widened from $4.2 million to $4.8 million. However, the adjusted EBITDA loss improved from $1.0 million to $354,870.
Despite the challenges faced in Q1, CEO Alex Igelman remains positive about the company’s long-term growth plans. The recent acquisition of a 30% minority interest in esports content producer Drafted.gg is seen as a step towards supporting the company’s long-term ambitions.
