Enthusiast Gaming Reports Strong Second Quarter 2020 Financial Results with Increase in Direct Sales and Subscriptions

• Revenue totaled $7.0 million
  
• Strong media revenue driven by direct sales and subscriptions
• Successful second virtual Pocket Gamer Connects, with over 1,300 attendees and elite sponsors including: Facebook Gaming, Microsoft, Agora.io, Unity and Appsflyer
• Exceeded internal expectations with gross margin at 46%
• Page views increased 35% to 3.1 billion when compared to Q1 2020
• Strong cash position of $8.4 million at quarter-end
• Subsequent to quarter-end, the Company announced a $15 million bought deal financing and the acquisition of Omnia Media

TORONTO, Aug. 11, 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 June 30, 2020 (“Q2 2020”). All financial information is presented in Canadian dollars unless otherwise indicated.

Adrian Montgomery, CEO of Enthusiast Gaming commented, “I am pleased with our strong Q2 performance, even against the backdrop of a global pandemic which negatively affected advertising rates across the board. It was exciting to see our direct sales team emerge as a valuable contributor to both revenue and margin, as well as our Pocket Gamer events successfully move online. Our media revenue growth was further strengthened by a surge in subscriptions and an increase in ads served, and this momentum in our different revenue streams continues into Q3.” He continued, “Our Q2 results follow the transformational acquisition of Omnia Media announced last week. Acquiring Omnia will not only change the entire landscape of our business, but will also add immediate value both operationally and financially across every aspect of our platform, which will start to be reflected next quarter. The combination is highly complementary with our key priorities, and we look forward to working with Omnia’s experienced team as we integrate the businesses.”

Q2 2020 Financial Highlights

• Q2 2020 total revenue was $7.0 million, compared to $7.1 million for the three months ended March 31, 2020 (“Q1 2020”). Q2 2020 revenue exceeded management’s expectations, driven by the Company’s media division outperforming amidst the COVID-19 pandemic. Annualized revenue per viewer in Q2 2020 was $0.12 increasing from $0.10 in Q1 2020.
   
• Q2 2020 gross margin was 46%, compared to 46% in Q1 2020 and 34% in Q4 2019. The increase in gross margin in the current year as compared to Q4 2019 is attributable to the growth of higher margin revenue streams including direct sales and subscriptions, which are expected to continue to grow.