• Total revenue for the quarter was $4.8 million, an increase of 12% over the prior year.
• Gross margin for the quarter increased to 59%, compared to 50% in the prior year

Vancouver, British Columbia--(Newsfile Corp. - November 14, 2023) - FansUnite Entertainment Inc. (TSX: FANS) (OTCQB: FUNFF) ("FansUnite" or the "Company") announced that it has filed its condensed consolidated interim financial statements and associated management's discussion and analysis ("MD&A") for the three and nine month periods ended September 30, 2023. All amounts are stated in Canadian dollars unless otherwise indicated.

Q3 Fiscal 2023 Earnings Call Details

Day: Wednesday, November 15, 2023
Time: 10:00 AM (EST) / 7:00 AM (PST)
Topic: FansUnite's Q3 Fiscal 2023 Financial Results
Registration: https://us02web.zoom.us/webinar/register/WN_o8e4zdIVRoa0gY2rkLrBEg

Third Quarter Fiscal 2023 Financial Highlights:

• Total revenue for the three months ended September 30, 2023 was $4.8 million, an increase of 12% as compared to $4.3 million over the same period in the prior year.

• Gross margin for the three months ended September 30, 2023 was 59%, an increase of 9% as compared to 50% over the same period in the prior year.

• Gross profit for the three months ended September 30, 2023 was $2.8 million, an increase of 27% as compared to $2.2 million over the same period in the prior year.

• Total Adjusted EBITDA for the three months ended September 30, 2023 was $0.2 million, an increase of $1.5 million as compared to ($1.3) million over the same period in the prior year.

• The Company had net working capital of $1.5 million as of September 30, 2023, as compared to ($4.2) million as of December 31, 2022.

Nine Months Ended Fiscal 2023 Financial Highlights:

• Total revenue for the nine months ended September 30, 2023 was $17.2 million, a decrease of approximately 2% as compared to $17.5 million over the same period in the prior year.

• Gross margin for the nine months ended September 30, 2023 was 64%, an increase of approximately 10% as compared to 54% over the same period in the prior year.

• Gross profit for the nine months ended September 30, 2023 was $10.9 million, an increase of approximately 16% as compared to $9.4 million over the same period in the prior year.

• Total Adjusted EBITDA for the nine months ended September 30, 2023 was $1.1 million, an increase of $2.3 million as compared to ($1.2) million over the same period in the prior year.

Third Quarter Fiscal 2023 Operational Highlights:

On August 24, 2023, the Company announced that it reached an agreement with DragonBet, a Welsh-based UK sportsbook, to migrate off the Chameleon Gaming platform on September 3, 2023, as part of the Company's strategy to streamline its business operations. The migration of DragonBet, combined with the sale of the Company's Chameleon source code to Betr Holdings, Inc. on May 8, 2023, completed FansUnite's transition away from business-to-business ("B2B") platform licensing. As a result of this transition, the Company expects to achieve annualized cost savings of approximately $7.8 million, which includes reductions in salary and selling, general and administrative costs.

"We are pleased to achieve continued growth as highlighted by our financial performance in the third quarter of 2023," said Scott Burton, CEO of FansUnite. "With a focus on expanding our affiliate business, FansUnite reported substantial increases in our revenues and gross margins during Q3 of this year. These results reflect our strategy to focus on profitability while maximizing our cost efficiencies in all areas of our business."

Growth Outlook

The Company intends to continue expanding its affiliate operations across North America via Betting Hero by entering new betting jurisdictions as well as growing its additional revenue streams, which include Hero Research and Hero Hotline. Furthermore, FansUnite will continue evaluating new opportunities to achieve cost efficiencies across all business units without disrupting its revenue growth.

About FansUnite Entertainment Inc.

FansUnite is a global sports entertainment and gaming company, focused on the regulated and lawful sports betting affiliate market which includes customer acquisition, retention, support and reactivation. FansUnite has established itself as a leader in the North American affiliate market through its subsidiary American Affiliate Co LLC ("AmAff'' or "American Affiliate"). AmAff is a North American omni-channel customer acquisition company, covering both retail and digital customer activation for sportsbooks, casinos, poker and fantasy sports platforms.