Real Luck Group, the parent company of esports betting company Luckbox, have reported a net loss of almost C$5.5m for 2020.
Luckbox, an esports bookie that allows fans to bet on “all major esports tournaments”, have announced the departure of their CEO, Quentin Martin, just days after posting their annual performance.
In their financial statement for 2020 they revealed that they had a net loss of almost C$5.5m before income taxes, down from C$20.5m in 2019. The drastic change in expenses is said to be predominantly the result of share-based compensation being reduced.
The betting company’s largest expenses came in the form of salaries and director fees. These costs totaled almost C$1.55m, according to a financial document.
On the flip side, Real Luck Group reported revenues of C$75,480 against a cost of sales amounting to C$287,947 — resulting in a gross loss of C$212,467. In 2019 they generated a total income of $4,024 against a cost of sales of C$81,186.
“We were able to organically and efficiently increase our audience as the global pandemic brought esports betting into focus during early 2020,” said Martin of the company’s performance.
“The calendar of esports events was adversely impacted, particularly in the second half, due to the postponement of the biggest esports event of the year – the Dota 2 International. This year’s esports calendar looks much better, and our strong balance sheet positions us for healthy growth in 2021 and 2022.”
Martin is said to have voluntarily stepped down as CEO of the newly public company. Having stepped up as the chief executive in February 2020, he oversaw several instances of funding, the hiring of key C-level staff, and a public listing in Toronto. Replacing him as CEO is former Dunder Casino chief executive Thomas Rosander.
“I am confident that we can build on the excellent work done so far under Quentin’s leadership to make Luckbox a world-leading esports betting destination,” commented Rosander.