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Canada's East Side Games Q3 revenue falls amid constrained user acquisition spend

By Reuters News


Overview

  • Canada mobile gaming firm's Q3 revenue fell 46% yr/yr, including C$2.2 mln milestone payment

  • Adjusted EBITDA for Q3 rose 153% yr/yr, margin improved to 14.8%

  • Company completed 32% headcount reduction and portfolio rationalization in September


Outlook

  • East Side Games expanding User Acquisition investment, aiming to maintain revenue and focus on profitability

  • Company plans to scale User Acquisition, invest in newer titles, and pursue platform partnerships into 2027


Result Drivers

  • MILESTONE PAYMENT - Q3 revenue included a C$2.2 mln development milestone payment from a platform partner, which is not recurring and tied to project progress

  • USER ACQUISITION SPEND - Base business revenue declined due to constrained user acquisition spend, which was managed to a 30-60 day payback target until new credit facilities were secured in October

  • COST REDUCTION & RESTRUCTURING - Company completed a 32% headcount reduction and portfolio rationalization in September, expected to generate C$3.5 mln in annualized savings starting in Q4


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

C$10.79 mln

Q3 Adjusted EBITDA

C$1.6 mln


Reuters Recommended Reads

  • Nov 10 - Canada's VerticalScope Q3 revenue misses estimates due to lower programmatic advertising

  • Nov 10 - Canada's Stingray Group Q2 revenue jumps on higher advertising revenues

  • Nov 12 - Bit Digital Q3 revenue misses as bitcoin mining winddown weighs


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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