Enthusiast Gaming Reports Q1 Financial Results with Continued Momentum and Robust Growth Across Key Metrics

• Record Q1 total revenue of $7.1 million
  
• Gross margin of 46%, compared to 34% in Q4 2019
• Page views increased 35% to 2.3 billion, compared to 1.7 billion in Q4 2019
• Strong cash position of $11.5 million at quarter-end

TORONTO, May 14, 2020 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (TSX: EGLX) (OTCQB:ENGMF) (FSE: 2AV) (“Enthusiast Gaming” or the “Company”) announced its financial results for the three months ending March 31, 2020 (“Q1 2020”). All financial information is presented in Canadian dollars unless otherwise indicated.

“We had an extremely strong first quarter coming off the tailwinds of a transformational 2019. I want to congratulate our media division for outperforming typical first quarter seasonal declines for media properties, and for more than doubling their Q1 performance year-over-year,” said Adrian Montgomery, CEO of Enthusiast Gaming. “As we navigate through the current market volatility caused by COVID-19, we continue to meet, and in many instances exceed our operational expectations. We are closely monitoring the recent dramatic changes that have affected the digital advertising landscape and remain diligent in managing our cost structure. Looking forward, it's important for us to continue focusing on our key growth drivers and high margin revenue streams, including executing on our global direct sales strategy, and increasing our subscription model.”

Q1 2020 Financial Highlights

• Q1 2020 total revenue was $7.1 million, compared to $10.0 million in Q4 2019 and $6.3 million in Q3 2019 (pro forma). Q1 2020 revenue exceeded management’s expectations, driven by the Company’s media division outperforming despite the slower seasonality trend associated with the business in Q1. Revenue per viewer in Q1 2020 was $0.10.
  
  
• Q1 2020 gross margin was 46%, compared to 34% in Q4 2019 and 49% in Q3 2019 (pro forma). The Company continues to pursue higher margin revenue streams. The Company expects the gross margin to remain strong for the remainder of the year as it begins to recognize additional revenue relating to its direct sales efforts.
  
  
• Viewer engagement increased 35% to 2.3 billion page views across the media platform, when compared to 1.7 billion page views during Q4 2019. The Company’s digital properties have seen a significant increase in traffic following the COVID-19 outbreak.
  
  
• Net loss and comprehensive loss in Q1 2019 was $5.4 million, resulting in a net loss per share (basic and diluted) of $0.07. Net loss and comprehensive loss includes $1.3 million of interest and accretion, $1.3 million of amortization and depreciation, and $0.4 million of share-based compensation.