In order to increase profitability, EBet has laid off more than half of its workforce, among other measures.
The company stated that it has taken “significant measures” to become EBITDA positive this month, including a 54% reduction in the total number of employees and contractors.
EBet, which was formerly known as Esports Technologies until a name change in May, increased its revenue by more than 166% in the second quarter of the current fiscal year.
This was fueled by the 2021 acquisition of Aspire Global’s B2C assets, which included the Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, and Generation VIP brands.
EBet, on the other hand, reported a $4.7 million adjusted EBITDA loss for the quarter and a $4 million adjusted EBITDA loss for the third quarter.
However, the company has now announced a new “profitability plan” aimed at achieving a positive EBITDA run rate beginning in August 2022 – the current month.
In addition to the aforementioned layoffs, EBet is “realigning resources” to “escalate and expand” its focus on iGaming, while decreasing its investment in “non-revenue-generating esports products.”
However, as the company focuses on profitability, revenue growth is expected to slow in the short term. As a result, it does not expect to meet its previous revenue target of $70 million in fiscal year 2022.
However, EBet CEO Aaron Speach remained upbeat, stating that the company has reached a “major inflection point.”
“We are on track to achieve positive EBITDA this month and believe we have reached a major inflection point for EBet’s business,” he said.
“I’ve never been more optimistic about EBet’s future for our executive team and shareholders.” We are seeing significant scalable gains and intend to keep increasing profitability and shareholder value.”