{strong}FansUnite{/strong} confirms refocus on affiliate vertical as part of Q2 results

FansUnite is ready to double down on its affiliate vertical following a second quarter marked by the offloading of two sizable segments of its business.

The global sports and entertainment company detailed the B2B sales – of its McBookie B2C business and Chameleon igaming platform – as part of its Q2 results, which were highlighted by total revenue of C$5.3m and gross margins of C$3.3m. Both figures represented significant year-over-year (YOY) increases.

“We are excited to announce a significant increase in revenue and gross margins during the second quarter of fiscal 2023,” said FansUnite CEO Scott Burton. “During the quarter, we saw a 14% increase in revenues year-over-year while our overall gross margins exceeded 60% due to our focus on higher margin operations.” 

As a result, FansUnite generated a record C$4.3m in EBITDA for the quarter, compared to an C$11.1m loss during the same period of 2022.

The company was buoyed by the dealmaking that saw it sell McBookie to an arm’s length third-party for C$5.5m in cash and the Chameleon platform to emerging US operator Betr for C$10m in total consideration. 

Burton confirmed that with the sales in the rear-view, the forward focus will be “more on growing business segments that produce significant cash flow.”

The CEO added: “We intend to achieve this goal by scaling our affiliate business segment, led by Betting Hero, which has generated substantial revenue and high gross margins as well as identifying more opportunities to improve our operational and financial efficiency.”

FansUnite intends to allocate more resources to Betting Hero and Props.com – its other flagship affiliate brand – while looking to scale Betting Hero’s extended revenue streams such as Betting Hero Hotline and Betting Hero Research.

As of June 30, the company had C$3.5m in unrestricted cash and C$6.1m in net working capital.