FansUnite Entertainment (TSX: FANS) has generated $20.08 million of revenue for the nine months ended 30 September 2022, and achieved its first cash flow positive quarter from operations.
The maiden cash flow positive quarter was achieved in Q1 FY2022, and amounted to approximately $0.5 million.
FansUnite also produced a gross margin of roughly 48% for the nine-month period.
B2C and B2B growth
This significant revenue growth was primarily driven by the operations of its wholly-owned subsidiary, American Affiliate (AmAff) through its live activation brand, Betting Hero, which offers affiliate marketing services for betting operators.
FansUnite also saw an increase in revenues from its B2C operations through its Scottish-focused UK sportsbook McBookie, as well as new revenues from its B2B segment, namely Wales-based UK sportsbook DragonBet.
In 2022, FansUnite continued to secure additional B2B clients for its proprietary white-label gaming solutions.
In August, the company entered into a licencing agreement with Betr Holdings.
FansUnite’s Player Account Management software will support Betr’s new sports micro-betting brand, betr, which is expected to launch in Ohio in January 2023.
FansUnite also entered into a partnership with Thimba Media as part of the company’s operational optimisation strategy.
Thimba Media will oversee all marketing and customer acquisition operations for FansUnite’s Latin American-focused betting site, Vamosgg.com, beginning in December 2022.
FansUnite has also obtained gaming supplier licences for two North American betting jurisdictions, Ontario (Canada) and Ohio (US). The company intends to secure additional licences in further jurisdictions in accordance with its clients’ operations.
FansUnite chief executive officer Scott Burton said 2022 had been a “transformational year” for the company.
“Most notably, we set new company records by generating a total revenue of $20.08 million for the nine months ended 30 September 2022, and producing a quarter of positive cash flow from operations, for the first time, in Q1 Fiscal 2022.”
“We also secured additional B2B partnerships, expanded Betting Hero’s affiliate presence, obtained new gaming licences for two North American betting jurisdictions, and removed substantial contingent liabilities.”
Mr Burton added that expansion across North America will be a key focus in 2023.