Esports Entertainment Group has posted net revenue of $15

Esports Entertainment Group has posted network revenue of $15.7m for Q1 2022, up 8% sequentially. Gross profit was also upwards 18% at $9.4m for the first of all billet of 2022.

However, the manipulator has been hit with a $38.6m impairment charge on several failing assets, specially its esports assets Helix, ggCircuit and EGL, signification its boilers suit Q1 describe is to a lesser extent positive.

Its CEO, Ulysses Simpson Grant Johnson, has attributed the company’s inability to monetise these assets to its “lack of liquidity.” The impairment billing has affected the operator’s adjusted EBITDA, which was electronegative $7.3m.

Alongside the charge, Esports Entertainment’s Earnings Before Interest Taxes Depreciation and Amortization was come to past $20.6m for a derivative debt liability.

As a result, the manipulator implied that it will attempt to offload at to the lowest degree 1 of its assets.

Johnson revealed: “We come non see a route to attractive profitability inward the genus Helix business, given its significant smash and on-going CapEx, and are currently working to disinvest our II existing centres; ggCircuit and EGL are two assets that we have got not effectively been able-bodied to monetise due to liquidity constraints.

“Our squad is workings internally to in good order calculate the long-term chance for these businesses, which will take into account us to break ground their carrying value.”

Offloading these brands would help the operator to “dramatically simplify” its offering inwards the esports space.

This is something Samuel Johnson feels is necessary, to stretch liquidity inward the unawares term patch simultaneously moving toward the company’s long-term “operational and profitability goals.”

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