Luckbox operator Real Luck Group is prepared to increase its efforts in customer acquisition, the firm said, after posting a net loss of C$8.6m in the full-year 2021.
After generating just C$25,174 in revenue during the year, down from C$75,480 in 2020, the business declared a gross loss of C$265,112, after accounting for a cost of sales of C$290,286.
This was a slightly broader gross loss than in 2020, when the figure was C$212,467.
The business then spent a further C$8.4m on expenses, up from C$5.2m in 2020. These consisted of C$1.9m in share-based compensation, C$1.7m in salaries and director fees, C$1.4m in consulting fees and C$1.3m in legal and professional fees.
Accounting for these expenses, modest interest and other income, and an income tax expense of just C$6,061, the business declared a net loss for the year of C$8.6m.
Real Luck Group CEO Thomas Rosander: “During fiscal 2021, our team worked to enhance and extend both our proprietary platform and infrastructure, positioning us to launch our player acquisition efforts in 2022.”
Following the completion of a private placement of special warrants with gross proceeds of C$17.8m, the operator ended the year with C$14.4m in cash and no debt, however, which it said positions it strongly for beginning its customer acquisition efforts in earnest during 2022.
“During fiscal 2021, our team worked to enhance and extend both our proprietary platform and infrastructure, positioning us to launch our player acquisition efforts in 2022,” said Real Luck Group CEO Thomas Rosander.
“Our work has enabled us to develop and launch a next-generation wagering platform, powered by superior business intelligence infrastructure to support our player acquisition efforts, with the aim of optimising marketing spend and player value.
“As part of our plan to build a betting platform for a new generation of players during 2021, we made hundreds of improvements to the platform, announced eight new partnerships and further strengthened our team.
Real Luck Group CEO Thomas Rosander: “We remain focused on esports and casino wagering as well as growing our user base and are constantly evaluating opportunities to scale the business.”
“To compliment our core esports offering, we added sports wagering, enabling fans to bet on hundreds of daily markets on sports such as football, basketball, soccer and hockey.
“We are looking forward to launching our offerings in Ontario and expect to enter additional regulated markets during 2022.
“We remain focused on esports and casino wagering as well as growing our user base and are constantly evaluating opportunities to scale the business. Recent market developments and our robust balance sheet put us in a position of relative strength in order to do so and we will update investors on these initiatives as progress is made.”
Following the end of the reporting period, Real Luck Group has strengthened its senior management team with a series of key hires.
For example, former Lottoland executive Benn Timbury was appointed as the business’ chief operating officer, while former Mr Green CEO Bo Wänghammar was appointed to its board of directors, both in March.
The business has also signed deals with a number of affiliates to improve its customer acquisition strategy, including Raketech.
Luckbox operator Real Luck Group has recruited former Lottoland executive Benn Timbury as its chief operating officer (COO).
The firm said Timbury has extensive experience in scaling up iGaming businesses across all areas of operations, including driving revenue growth, player acquisition and retention, B2C and B2B partnerships and global acquisitions.
Timbury’s most recent job was at Gibraltar-based Lottoland, where he played a key role in leading new strategic initiatives to drive the company’s growth.
Prior to his experience at Lottoland, Timbury was founder and CEO of online lottery operator LiveLotto, where he led the firm’s growth, corporate governance and legal frameworks.
Under the terms of his appointment, Real Luck Group has granted Timbury 750,000 stock options under its stock option plan, at a price of C$0.21 per option, representing its closing share price on 28 February.
The options are exercisable for a period of three years from the date of grant, vesting 10% immediately, 10% after six months and 20% for every subsequent six-month period.
“I am delighted to welcome Benn to Luckbox at an exciting time for our company,” said Real Luck Group CEO Thomas Rosander.
“After adding casino games to esports and sports on our next-generation wagering platform, we are beginning to scale player acquisition efforts and looking to enter new markets with additional licences, all of which Benn will play a pivotal role in executing.
“Benn has a proven track record of success in a leading role within iGaming companies, helping deliver on revenue growth, to hit operational milestones and implement B2C and B2B strategies and we are looking forward to having his expertise to help drive us forward on our near-term and long-term growth goals.”
Timbury added: “Luckbox sits perfectly at the convergence between esports, gaming and gambling and the huge potential of this sector is well documented.
“I am joining a stellar team that blends iGaming knowhow with esports authenticity and I am looking forward to playing a key role as we strive to scale our user base and revenues throughout the coming months.”