Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the
“Company”) (TSX: EGLX), a leading gaming and media company, today
announced that it has undertaken a series of strategic and
operational actions designed to enhance the Company’s business
model in the areas most critical to its future success, renewing
its commitment to the growth and development of its highly engaged
gaming communities and focusing the business on drivers of
high-margin revenue growth and sustainable profitability.
These actions, taken after a comprehensive
organizational review initiated at the beginning of the year, are
expected to generate $10 million in annual run-rate savings and
will be completed largely by the end of Q1 2024. Cost savings
initiatives and operational efficiencies include efficiencies in ad
tech, the consolidation of offices, the insourcing of production
and content resources, headcount reductions and other areas.
Enthusiast Gaming's immediate priority is to enhance organizational
effectiveness and community engagement.
“The changes that we have initiated will further
enable Enthusiast Gaming to operate with a more sustainable
organizational design, leveraging our valuable owned and operated
communities, where we will continue to deliver the best experiences
for our members and stakeholders, and with that, the strongest
financial performance,” commented Adrian Montgomery, Chairman and
Interim CEO of Enthusiast Gaming. “We remain focused on execution
and building a platform of sustainable profitability. While
reducing the size of our team is an extremely difficult decision
for any company, we are incredibly grateful to all of our employees
for the roles they have played in building Enthusiast Gaming to
where it is today.”
The Company will share further details about its
strategic restructuring during its earnings call for its fourth
quarter 2023 results.
Fourth Quarter and Full Year 2023 Earnings and
Conference Call
Enthusiast Gaming will report financial and
operating results for its fourth quarter ending December 31, 2023,
after the market closes on Monday, April 1, 2024. A conference call
and audio webcast will also be held at 5:00 p.m. ET that same day
to discuss the results and answer any questions.
Live conference call: 1-855-239-1101 (Toll Free)
or 1-412-317-5231 (Conference ID: 10187154)Live webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1660990&tp_key=d2cb2eac63
An archived recording of the webcast will be
available on the Investor Relations page of the Enthusiast Gaming
website, enthusiastgaming.com/investors.
Contacts
Enthusiast Gaming: Felicia DellaFortuna,
CFOInvestors: FNK IR, Matt Chesler, CFA –
investor@enthusiastgaming.comMedia: press@enthusisatgaming.com
About Enthusiast Gaming
Enthusiast Gaming is a leading gaming media and
entertainment company, building the largest platform for video game
enthusiasts and esports fans to connect and compete worldwide.
Combining the elements of its five core pillars: creators, content,
communities, games, and experiences, Enthusiast Gaming provides a
unique opportunity for marketers to create integrated brand
solutions to connect with coveted Gen Z and Millennial audiences.
Through its proprietary mix of digital media, content and gaming
assets, Enthusiast Gaming continues to grow its network of
communities, reflecting the scale and diversity of gaming
enthusiasts today.
Forward Looking Information
This news release contains certain statements
that may constitute forward-looking information under applicable
securities laws. All statements, other than those of historical
fact, which address activities, events, outcomes, results,
developments, performance or achievements that Enthusiast Gaming
anticipates or expects may or will occur in the future (in whole or
in part) should be considered forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as “plans”, “expects”, “is expected”,
“budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates”, or “believes” or variations (including negative
variations) of such words and phrases, or statements formed in the
future tense or indicating that certain actions, events or results
“may”, “could”, “would”, “might” or “will” (or other variations of
the forgoing) be taken, occur, be achieved, or come to pass.
Forward-looking statements in this news release include, but are
not limited to, statements regarding its strategic focus and plans,
the annual run-rate savings to be generated by the cost savings
initiatives undertaken by the Company, and the Company’s intended
cost savings initiatives and the results thereof.
Forward-looking statements are based on
assumptions and analyses made by the Company in light of its
experience and its perception of historical trends, current
conditions and expected future developments, including, but not
limited to, expectations and assumptions concerning interest and
foreign exchange rates; capital efficiencies, cost saving and
synergies; growth and growth rates; the success in the esports and
media industry; and the Company’s growth plan. While Enthusiast
Gaming considers these assumptions to be reasonable, based on
information currently available, they may prove to be incorrect.
Readers are cautioned not to place undue reliance on
forward-looking statements. In addition, forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions; the
timing and filing of the final base shelf prospectus and
corresponding Registration Statement; the potential offering of any
Securities by the Company; uncertainty with respect to the
completion of any future offering; the ability to obtain applicable
regulatory approvals for any contemplated offerings; the ability of
the Company to negotiate and complete future funding transactions;
adverse industry events; and future legislative, tax and regulatory
developments. Readers are cautioned that the foregoing list is not
exhaustive. For more information on the risk, uncertainties and
assumptions that could cause anticipated opportunities and actual
results to differ materially, please refer to the public filings of
Enthusiast Gaming which are available on SEDAR+ at
www.sedarplus.ca. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and reflect our
expectations as of the date hereof, and thus are subject to change
thereafter. Enthusiast Gaming disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
Neither the TSX Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Enthusiast Gaming (TSX:EGLX)
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