Consolidated revenue of $37.1 million, including record direct sales of $4.4 million

Paid subscribers grew to a record 155,000

TORONTO, Aug. 10, 2021 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (NASDAQ:EGLX) (TSX:EGLX), ("Enthusiast Gaming" or the "Company"), today announced financial results for the three and six months ended June 30, 2021. All amounts are stated in Canadian dollars unless otherwise indicated.

Second Quarter 2021 Financial and Operating Highlights

Revenue of $37.1 million for the three months ended June 30, 2021 vs the three months ended June 30, 2020 ("Q2 2020") revenue of $7.0 million
Gross profit of $8.0 million vs Q2 2020 gross profit of $3.2 million
Direct advertising sales of $4.4 million compared to direct advertising sales of $0.6 million in Q2 2020
The Company's common shares commented trading on the Nasdaq
Raised gross proceeds of $60.1 million (USD$49.5 million) in a public offering
Completed acquisitions of popular web properties Tabstats and Icy Veins
Paid subscribers of approximately 155,000 as at June 30, 2021, as compared to approximately 111,000 subscribers as at June 30, 2020
Net and comprehensive loss of $12.8 million, or $0.11 on a per common share basis
Esports division, Luminosity Gaming, ranked as the most watched team on Twitch for each month of the second quarter

"After listing on the Nasdaq, completing two major acquisitions and raising $60.1 million (USD$49.5 million) to further accelerate our accretive M&A strategy, this has been an exemplary quarter for Enthusiast Gaming," commented Adrian Montgomery, CEO of Enthusiast Gaming. "We expect to see sequential revenue growth and margin improvements throughout the remainder of the year, driven by momentum in direct sales and our pipeline of acquisitions. While we continue to grow our subscription business from current and newly acquired properties, the game-changer for this vertical is expected to come from Project GG and its premium subscription offering, which will launch as an exclusive alpha to select gamers in late September. Our team's ability to continue acquiring accretive properties, attract quality partners, and deliver fresh content to our fan communities continues to exceed expectations."

Certain information provided in this news release is extracted from the unaudited condensed consolidated interim financial statements (the "Financial Statements") and Management's Discussion & Analysis ("MD&A") of the Company for the three months ended June 30, 2021 and should be read in conjunction with them. It is only in the context of the information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A can be found under the Company's profile on SEDAR and EDGAR.

Earnings Announcement and Supplemental Information

Management will host a conference call and webcast on August 10, 2021, at 5:00 p.m. ET to review and discuss the second quarter 2021 results.

Conference call dial-in details:

North America (toll-free): +1 877-300-8521

International: +1 412-317-6026

Conference ID: 10159262

A live webcast can be accessed at https://www.enthusiastgaming.com/investors/.

If you are unable to join live, an archived recording of the webcast will be available on the investor relations section of the Enthusiast Gaming website.

About Enthusiast Gaming

Enthusiast Gaming is building the largest media platform for video game and esports fans to connect and engage worldwide. Combining the elements of its four core pillars; Media, Talent, Esports and Experiences, Enthusiast Gaming provides a unique opportunity and integrated approach to reach and connect with its coveted GenZ and Millennial audience. Through its proprietary mix of digital media and entertainment assets, Enthusiast Gaming has built a vast network of like-minded communities to deliver the ultimate fan experience.

Contacts

Enthusiast Gaming Investor Relations:

Eric Bernofsky, Chief Corporate Officer

investor@enthusiastgaming.com

Media Relations:

Carmela Antolino, Provident Communications

carmela@providentcomms.com

647-287-2286

Forward Looking Statements

This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.

Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.

Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Financial Position
As at June 30, 2021 and December 31, 2020
(Unaudited - Expressed in Canadian Dollars)

			June 30, 2021			December 31, 2020

ASSETS
Current
	Cash	$	51,367,573		$	4,323,823
	Trade and other receivables		22,322,613			22,424,596
	Investments		2,503,692			124,998
	Loans receivable		176,931			194,389
	Income tax receivable		262,331			290,077
	Prepaid expenses		4,093,213			576,802
Total current assets			80,726,353			27,934,685
Non-current
	Property and equipment		296,112			354,850
	Right-of-use asset - lease contracts		2,446,961			2,848,400
	Long-term investment		-			2,606,100
	Investment in associates		954,650			1,026,910
	Long-term portion of prepaid expenses		256,055			263,196
	Intangible assets		84,903,287			81,106,007
	Goodwill		124,712,768			106,181,086
Total Assets		$	294,296,186		$	222,321,234

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
	Accounts payable and accrued liabilities	$	21,901,837		$	23,602,547
	Contract liabilities		2,672,365			1,625,594
	Current portion of long-term debt		2,750,000			1,250,000
	Current portion of deferred payment liability		1,599,657			636,600
	Current portion of convertible debentures		-			7,546,453
	Current portion of lease contract liabilities		503,102			578,330
Total current liabilities			29,426,961			35,239,524
Non-current
	Long-term debt		7,271,115			21,651,956
	Long-term lease contract liabilities		1,991,145			2,308,336
	Vendor-take-back loan		-			5,559,250
	Long-term portion of deferred payment liability		1,690,410			529,124
	Deferred tax liability		16,887,505			15,161,987
Total liabilities		$	57,267,136		$	80,450,177

Shareholders' Equity
	Share capital		345,078,178			232,616,997
	Contributed surplus		16,591,617			7,494,164
	Accumulated other comprehensive income (loss)		(75,866	)		45,428
	Deficit		(124,564,879	)		(98,285,532	)
Total shareholders' equity			237,029,050			141,871,057
Total liabilities and shareholders' equity		$	294,296,186		$	222,321,234

Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
For the three and six months ended June 30, 2021 and 2020
(Unaudited - Expressed in Canadian Dollars)
			For the three months ended						For the six months ended
			June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020

Revenue
	Revenue	$	37,057,601		$	7,029,096		$	67,079,936		$	13,958,668
	Gain on player buyout		-			-			-			204,764
Total revenue			37,057,601			7,029,096			67,079,936			14,163,432
Cost of sales			29,038,301			3,807,977			53,129,628			7,649,084
Gross margin			8,019,300			3,221,119			13,950,308			6,514,348
Operating expenses
	Professional fees		1,213,479			627,703			1,950,975			913,945
	Consulting fees		1,075,726			1,181,024			2,386,353			2,388,674
	Advertising and promotion		813,588			212,605			1,855,942			486,491
	Office and general		2,165,506			466,173			2,872,451			1,452,641
	Salaries and wages		5,566,237			1,646,915			10,194,512			2,887,399
	Technology support, web development and content		2,698,660			1,299,857			4,093,543			2,234,751
	Esports player, team and game expenses		1,465,718			618,687			2,994,323			1,483,796
	Foreign exchange (gain) loss		(1,066,122	)		108,248			(1,076,255	)		(48,269	)
	Share-based compensation		3,958,309			278,875			9,718,345			669,248
	Amortization and depreciation		1,659,583			1,051,392			3,295,437			2,348,532
Total operating expenses			19,550,684			7,491,479			38,285,626			14,817,208

Other expenses (income)
	Transaction costs		209,129			-			209,129			-
	Share of (income) loss from investment in associates		(6,158	)		1,176,518			72,260			1,272,347
	Interest and accretion		480,987			1,361,524			1,272,301			2,686,785
	Change in fair value of investment		160,655			(11,601	)		156,671			163,015
	Gain on repayment of long-term debt		-			-			(39,502	)		-
	Loss on settlement of vendor-take-back loan		316,241			-			316,241			-
	Loss on revaluation of deferred payment liability		89,184			-			89,184			-
	Interest income		(22,911	)		(15,007	)		(41,231	)		(76,530	)
Net loss before income taxes			(12,758,511	)		(6,781,794	)		(26,370,371	)		(12,348,477	)

Income taxes
	Current tax expense		48,692			11,381			34,037			11,381
	Deferred tax recovery		(45,282	)		(442,195	)		(125,061	)		(442,195	)
Net loss for the period			(12,761,921	)		(6,350,980	)		(26,279,347	)		(11,917,663	)

Other comprehensive income (loss)
Items that may be reclassified to profit or loss
	Foreign currency translation adjustment		(73,592	)		(198,752	)		(121,294	)		3,619
Net loss and comprehensive loss for the period		$	(12,835,513	)	$	(6,549,732	)	$	(26,400,641	)	$	(11,914,044	)
Net loss and comprehensive loss per share,
	basic and diluted	$	(0.11	)	$	(0.09	)	$	(0.23	)	$	(0.16	)
Weighted average number of common shares
	outstanding, basic and diluted		117,523,027			74,210,312			114,509,330			73,367,225

Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Cash Flows
For the six months ended June 30, 2021 and 2020
(Unaudited - Expressed in Canadian Dollars)
		For the six months ended
		June 30, 2021			June 30, 2020

Cash flows from operating activities
Net loss for the period	$	(26,279,347	)	$	(11,917,663	)
Items not affecting cash:
Amortization and depreciation		3,295,437			2,348,532
Share-based compensation		9,718,345			669,248
Interest and accretion		465,657			897,397
Deferred tax recovery		(125,061	)		(442,195	)
Gain on player buyout		-			(204,764	)
Foreign exchange loss (gain)		587,716			(14,831	)
Gain on repayment of long-term debt		(39,502	)		-
Loss on settlement of vendor-take-back loan		316,241			-
Loss on revaluation of deferred payment liability		89,184			-
Capitalized interest and success fee		-			1,382,646
Shares for services		185,662			92,115
Change in fair value of investment		156,671			163,015
Share of loss from investment in associates		72,260			1,272,347
Changes in working capital
Changes in trade and other receivables		375,985			(177,083	)
Changes in prepaid expenses		(3,608,526	)		121,589
Changes in loans receivable		37,500			-
Changes in accounts payable and accrued liabilities		(2,511,575	)		(902,945	)
Changes in contract liabilities		998,992			(299,600	)
Changes in income tax receivable		(206,083	)		(285,630	)
Net cash used in operating activities		(16,470,444	)		(7,297,822	)

Cash flows from investing activities
Cash paid for mergers and acquisitions		(12,549,396	)		-
Cash acquired from mergers and acquisitions		162,674			-
Proceeds from disposal of investment		-			680,000
Proceeds from disposal of intangible assets		-			204,764
Investment in associate		-			(500,000	)
Acquisition of property and equipment		(3,398	)		(4,871	)
Net cash (used in) provided by investing activities		(12,390,120	)		379,893

Cash flows from financing activities
Proceeds from the issuance of shares for offerings, net of
transaction costs		95,183,398			-
Proceeds from long-term debt		944,787			-
Repayment of long-term debt		(13,773,470	)		-
Proceeds from exercise of warrants		-			2,178,850
Proceeds from exercise of options		784,431			49,367
Repayment of vendor-take-back loan		(6,158,329	)		-
Lease payments		(392,175	)		(121,702	)
Net cash provided by financing activities		76,588,642			2,106,515

Foreign exchange effect on cash		(684,328	)		20,201
Net change in cash		47,043,750			(4,791,213	)
Cash, beginning of period		4,323,823			13,211,722
Cash, end of period	$	51,367,573		$	8,420,509

Enthusiast Gaming Reports Second Quarter 2021 Results