React Gaming Group reported a more than 2,000% increase in second-quarter revenue, though the company’s overall top-line remains modest.
React’s revenue for the second quarter was CA$845,543 (US$654,695), a significant increase over the previous year’s CA$39,902.
However, the group’s bottom line fell even further into the red year on year. React’s operating loss increased from CA$695,668 to CA$2.7m as costs increased.
The group’s EBITDA loss increased to CA$2.5 million from CA$699,393, while React’s net loss increased to CA$1.5 million.
This decrease in profitability can be attributed primarily to Livestream Gaming, and more specifically, Loot.bet. Q2 marked the company’s first “fully-integrated quarter of operations” since its acquisition on February 18th.
While Loot.bet contributed to React’s overall revenue growth, this was offset by the brand’s operating costs as well as professional fees related to Livestream’s ongoing operations.
Nonetheless, React’s CEO, Leigh Hughes, was upbeat, saying, “This has been a quarter of great achievements for React Gaming, as we increased Loot.bet’s revenue in absolute value by 25% over Q1 even before launching our IOM site and obtaining GLI-19 certification.”
React’s revenue for the first half of the year increased to CA$1.2 million, up from CA$63,007. However, it also had an EBITDA loss of CA$4.6m and a net loss of CA$4.9m in the first quarter.
React’s future goals are growth and profitability. “Our main goal in the short term is to grow our business, manage our operations so that they become profitable, and successfully conclude white-label B2B agreements as we enter new markets,” Hughes said.