For Q2, React generated CA$845,543 (US$654,695) in revenue, a considerable increase when compared to last year’s CA$39,902.
However, the group’s bottom-line dipped even further into the red on a year-over-year basis. Rising costs saw React’s operating loss go from CA$695,668 to CA$2.7m.
The group’s EBITDA loss likewise widened, growing to CA$2.5m from CA$699,393, while React’s net loss increased to CA$1.5m.
This drop in profitability can be largely attributed to Livestream Gaming, and more specifically, Loot.bet. Q2 represented the first “fully-integrated quarter of operations” since its acquisition on 18 February.
While Loot.bet drove React’s overall revenue increase, this growth was offset by the brand’s operating costs, as well as professional fees related to Livestream’s ongoing operations.
Nevertheless, Leigh Hughes, React’s CEO, remained optimistic, commenting: “This has been a quarter of great achievements for React Gaming, as we increased Loot.bet’s revenue in absolute value by 25% over Q1 even before launching our IOM site and obtaining GLI-19 certification.”
On a half-year basis, React’s revenue came to CA$1.2m, up from CA$63,007. However, it also recorded an EBITDA loss of CA$4.6m and a net loss of CA$4.9m for H1.
Going forward, React is aiming for growth and profitability. Hughes said: “Our main goal for the short term is to grow our business, manage our operations so that they become profitable and successfully conclude white-label B2B agreements as we enter new markets.”