Record revenue of $43.3 million, including direct sales of $6.8 million

Record gross profit of $10.1 million

Paid subscribers grew to an all-time high of 207,000

TORONTO, Nov. 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 nine months ended September 30, 2021. All amounts are stated in Canadian dollars unless otherwise indicated.

Third Quarter 2021 Financial and Operating Highlights

Revenue of $43.3 million, a 165% increase vs revenue of $16.3 million in Q3 2020
Direct sales of $6.8 million, a 580% increase vs direct sales of $1.0 million in Q3 2020
Gross profit of $10.1 million, a 146% increase vs gross profit of $4.1 million in Q3 2020
Paid subscribers of 207,000 as at September 30, 2021, an 85% increase vs paid subscribers of 112,000 as at September 30, 2020
Cash balance of $33.5 million as at September 30, 2021, as compared to $4.3 million as at December 31, 2020
Completed acquisitions of GameKnot and Addicting Games
Net cash used in operating activities of $3.8 million vs $3.7 million in Q3 2020
Net and comprehensive loss of $12.3 million, or $0.10 per common share, vs $8.0 million and $0.10, for Q3 2020

"This has been an outstanding quarter for Enthusiast Gaming across our key categories," commented Adrian Montgomery, CEO of Enthusiast Gaming. "Ongoing momentum in direct sales, the acquisition of Addicting Games, and the renewal and addition of key partners continues to power revenue and gross profit numbers that demonstrate the strength of our strategy. Our team's ability to continue acquiring accretive properties, attract quality partners, and deliver the best fan experience through our flywheel of content, creators, and communities continues to deliver against and 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 and nine months ended September 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 November 10, 2021, at 5:00 p.m. ET to review and discuss the third quarter 2021 results.

Conference call dial-in details:

North America (toll-free): +1 844-826-3035

International: +1 412-317-5195

Conference ID: 10161588

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:

Ashley Stanhope, Provident Communications

ashley@providentcomms.com

416-303-1498

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 September 30, 2021 and December 31, 2020
(Unaudited - Expressed in Canadian Dollars)

				September 30, 2021			December 31, 2020

	ASSETS
	Current
		Cash	$	33,526,534		$	4,323,823
		Trade and other receivables		27,351,305			22,424,596
		Investments		133,466			124,998
		Loans receivable		176,931			194,389
		Income tax receivable		290,077			290,077
		Prepaid expenses		3,098,610			576,802
	Total current assets			64,576,923			27,934,685
	Non-current
		Property and equipment		279,562			354,850
		Right-of-use asset		2,731,941			2,848,400
		Long-term investment		-			2,606,100
		Investment in associates and joint ventures		921,235			1,026,910
		Long-term portion of prepaid expenses		263,224			263,196
		Intangible assets		101,540,147			81,106,007
		Goodwill		156,181,672			106,181,086
	Total assets		$	326,494,704		$	222,321,234

	LIABILITIES AND SHAREHOLDERS' EQUITY
	Current
		Accounts payable and accrued liabilities	$	27,136,558		$	23,602,547
		Contract liabilities		3,455,887			1,625,594
		Income tax payable		374,364			-
		Current portion of long-term debt		9,766,060			1,250,000
		Current portion of deferred payment liability		10,648,211			636,600
		Current portion of convertible debentures		-			7,546,453
		Current portion of lease contract liabilities		604,094			578,330
		Current portion of other long-term debt		11,176			-
	Total current liabilities			51,996,350			35,239,524
	Non-current
		Long-term debt		-			21,651,956
		Long-term portion of deferred payment liability		5,991,777			529,124
		Long-term lease contract liabilities		2,266,045			2,308,336
		Vendor-take-back loan		-			5,559,250
		Other long-term debt		137,158			-
		Deferred tax liability		20,880,115			15,161,987
	Total liabilities		$	81,271,445		$	80,450,177

	Shareholders' Equity
		Share capital		360,603,409			232,616,997
		Contributed surplus		21,563,566			7,494,164
		Accumulated other comprehensive income		49,007			45,428
		Deficit		(136,992,723	)		(98,285,532	)
	Total shareholders' equity			245,223,259			141,871,057
	Total liabilities and shareholders' equity		$	326,494,704		$	222,321,234

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

	Revenue
		Revenue	$	43,341,907		$	16,328,946		$	110,421,843		$	30,287,614
		Gain on player buyout		-			-			-			204,764
	Total revenue			43,341,907			16,328,946			110,421,843			30,492,378
	Cost of sales			33,216,294			12,268,906			86,345,922			19,917,990
	Gross margin			10,125,613			4,060,040			24,075,921			10,574,388
	Operating expenses
		Professional fees		434,862			549,942			2,385,837			1,463,887
		Consulting fees		725,408			1,336,461			3,111,761			3,725,135
		Advertising and promotion		609,587			215,410			2,465,529			701,901
		Office and general		1,963,965			625,296			4,836,416			2,077,937
		Salaries and wages		6,574,338			2,304,003			16,768,850			5,191,402
		Technology support, web development and content		3,146,453			1,163,126			7,239,996			3,397,877
		Esports player, team and game expenses		1,615,655			760,844			4,609,978			2,244,640
		Foreign exchange gain		(1,060,724	)		(23,125	)		(2,136,979	)		(71,394	)
		Share-based compensation		4,971,949			203,963			14,690,294			873,211
		Amortization and depreciation		2,372,839			1,042,072			5,668,276			3,390,604
	Total operating expenses			21,354,332			8,177,992			59,639,958			22,995,200

	Other expenses (income)
		Transaction costs		301,343			1,621,775			510,472			1,621,775
		Share of loss from investment in associates
		and joint ventures		158,415			808,011			230,675			2,080,358
		Interest and accretion		430,538			1,264,594			1,702,839			3,951,379
		Change in fair value of investment		288,093			(374,065	)		444,764			(211,050	)
		Loss on modification of long-term debt		-			806,879			-			806,879
		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		33,162			-			122,346			-
		Interest income		(9,315	)		(14,775	)		(50,546	)		(91,305	)
	Net loss before income taxes			(12,430,955	)		(8,230,371	)		(38,801,326	)		(20,578,848	)

	Income taxes
		Current tax expense		127,101			9,139			161,138			20,520
		Deferred tax recovery		(130,212	)		(143,623	)		(255,273	)		(585,818	)
	Net loss for the period			(12,427,844	)		(8,095,887	)		(38,707,191	)		(20,013,550	)

	Other comprehensive income (loss)
	Items that may be reclassified to profit or loss
		Foreign currency translation adjustment		124,873			62,420			3,579			66,039
	Net loss and comprehensive loss for the period		$	(12,302,971	)	$	(8,033,467	)	$	(38,703,612	)	$	(19,947,511	)
	Net loss and comprehensive loss per share,
		basic and diluted	$	(0.10	)	$	(0.10	)	$	(0.33	)	$	(0.26	)
	Weighted average number of common shares
		outstanding, basic and diluted		126,395,192			83,147,816			118,514,822			76,651,219

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

	Cash flows from operating activities
	Net loss for the period	$	(38,707,191	)	$	(20,013,550	)
	Items not affecting cash:
	Amortization and depreciation		5,668,276			3,390,604
	Share-based compensation		14,690,294			873,211
	Interest and accretion		606,060			1,378,077
	Deferred tax recovery		(255,273	)		(585,818	)
	Gain on player buyout		-			(204,764	)
	Foreign exchange gain		(101,302	)		(7,050	)
	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		122,346			-
	Capitalized interest and success fee		-			1,494,910
	Shares for services		110,565			138,172
	Loss on modification of long-term debt		-			806,879
	Provisions		-			90,366
	Change in fair value of investment		444,764			(211,050	)
	Share of loss from investment in associates and joint ventures		230,675			2,080,358
	Changes in working capital:
	Changes in trade and other receivables		(3,896,016	)		(1,916,067	)
	Changes in prepaid expenses		(2,584,504	)		63,250
	Changes in loans receivable		37,500			-
	Changes in accounts payable and accrued liabilities		2,383,538			2,288,492
	Changes in contract liabilities		881,756			(387,411	)
	Changes in income tax receivable		(149,468	)		(285,480	)
	Net cash used in operating activities		(20,241,241	)		(11,006,871	)

	Cash flows from investing activities
	Cash paid for mergers and acquisitions		(27,071,176	)		(10,500,000	)
	Cash acquired from mergers and acquisitions		489,107			281,125
	Proceeds from disposal of investment		-			680,000
	Proceeds from disposal of intangible assets		-			204,764
	Investment in associates and a joint venture		(125,000	)		(2,169,750	)
	Acquisition of property and equipment		(3,398	)		(4,871	)
	Net cash used in investing activities		(26,710,467	)		(11,508,732	)

	Cash flows from financing activities
	Proceeds from the issuance of shares for offerings, net of
	transaction costs		95,150,810			15,609,257
	Proceeds from long-term debt		944,787			-
	Repayment of long-term debt		(14,023,470	)		-
	Proceeds from exercise of warrants		-			2,354,246
	Proceeds from exercise of options		784,431			49,366
	Repayment of vendor-take-back loan		(6,158,329	)		-
	Lease payments		(531,085	)		(221,764	)
	Net cash provided by financing activities		76,167,144			17,791,105

	Foreign exchange effect on cash		(12,725	)		39,176
	Net change in cash		29,202,711			(4,685,322	)
	Cash, beginning of period		4,323,823			13,211,722
	Cash, end of period	$	33,526,534		$	8,526,400

Enthusiast Gaming Reports Third Quarter 2021 Results