The business, formerly known as Esports Technologies, underwent a name change in May. It acquired Aspire Global’s B2C brands, including Karamba, Hopa, and BetTarget, for $75.9 million. This acquisition proved beneficial as the business recorded positive earnings of $7.1 million in the three months ending on March 31. To further enhance its profitability, the business has now introduced a “profitability plan”.
The primary focus of the plan is to achieve positive monthly earnings before interest, tax, depreciation, and amortization (EBITDA) at the earliest. To accomplish this, the company will be reducing Ebet’s total number of employees and contractors by 54%. The plan also entails a shift of focus towards igaming rather than the esports sector, which will see a decrease in investment.
Additionally, the plan includes optimizing the efficiency of marketing campaigns, reducing operating costs, and eliminating “non-material contracts”. This strategic approach marks a significant turning point for Ebet’s business, according to CEO Aaron Speach. The company expects positive EBITDA this month and is immensely optimistic about its future.
However, due to the reduced investment, the business no longer anticipates achieving its projected annual revenue of $70 million. The company has refrained from providing new revenue guidance. The departure of Ebet’s Chief Operating Officer, Bart Barden, was also announced earlier this month.
