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Esports Entertainment CEO Alex Igelman shared the company’s B2C expansion plans and outlined its divestment efforts in a letter to shareholders today (April 18).
Esports entertainment has since struggled May 2022 as it admitted to “doubting” whether it could be in business for another year. In November, its brands SportNation and RedZone Halts trading in UK while ex-CEO grant johnson exit next month, after rumor hovering over its future.
Eagleman was named January This year, he said he conducted a review of the company and coordinated it with an action plan.
“Since joining the company about three months ago, I have immediately performed a top-down review of the entire organization based on where I believe the esports and esports gambling industry is headed, and then tying this to a cohesive vision for the company,” Eagleman said.
He explained that Esports Entertainment will now focus on expanding its B2C offerings, particularly through its Idefix platform.The company acquired Idefix as part of its $30 million acquisition of Lucky Dino March 2021.
“As a business-to-consumer (B2C) igaming operator in the international market, operating under our MGA license, we plan to refocus on esports betting with new gaming content and products,” he said.
“At the same time, the company is implementing a strategy to expand its B2C esports betting service through its Idefix platform, and we are in the final stages of integrating the Oddin.gg iframe solution onto our esports betting platform.”
“Ultimately, we plan to offer an esports-first, Idefix-based B2B platform for sales and distribution to third parties.”
Divestment efforts
Igelman pointed to multiple divestment efforts by Esports Entertainment, many of which took place this year. Eagleman said the sales were to “simplify” its operations.
“In January of this year, we completed the sale of the Spanish esports gaming license for about $1.2 million,” he said. “After this transaction, we completed the besard business Acquired in February for approximately $1.7 million in cash and further eliminated approximately $7.5 million of debt and liabilities in the Bethard business. “
“In March we initiated the liquidation of Argyll Entertainment, a recurring loss-making UK online bookmaker.”
Eagleman also explained the company’s decision to lay off more than 37% of its workforce this year.
“We are also reducing headcount from 158 full-time employees to 99 full-time employees on December 31, 2022, including planned layoffs,” he said. “While we have incurred upfront costs related to the restructuring, over time these actions are expected to reduce our operating expenses by more than $4 million per year.”
looking to the future
Despite the poor start to 2023, Eagleman praised the company’s “accomplishments” as “remarkable” during his tenure as CEO.
“Esports entertainment has extremely valuable and differentiated assets that we believe will be key to the industry’s future,” he said. “I firmly believe that what we have achieved in just three months is truly remarkable.”
“With the right leadership, direction and financial discipline, I am very confident in establishing Esports Entertainment as a leader in this rapidly emerging market, while unlocking value for shareholders.”
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