Enthusiast Gaming Unveils $10 Million Cost Reduction Program

Sharpens Focus on Engaged Communities and Prioritizes High-Margin Revenue for Enhanced Profitability

Announces Date for Fourth Quarter 2023 Earnings

LOS ANGELES, March 07, 2024 (GLOBE NEWSWIRE) -- 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=d2cb2e ...