EBet, a global provider of advanced esports wagering products and technology, will be laying off over half of its workers. The company cited profitability goals as the reason for the drastic measures.
EBet Announced Profitability Plan
In May, EBet posted its results for the second quarter of the fiscal year. Although the company’s revenues rose substantially, it also recorded huge losses that ended up hurting its profits.
For reference, EBet recorded a whopping 166% year-on-year increase in revenues during the second quarter of the year. Translated into numbers, the company earned $19 million during the period. Despite the favorable revenues, the company’s profits were hurt by millions in EBITDA losses.
As a result, EBet will now seek ways to minimize its losses. The company announced a new profitability plan that will aim to mitigate the damage and help the company maximize its profits.
The first step in this plan, according to the company, would be reducing its workforce by 54%. These drastic measures will likely cause short-term revenue declines but will ultimately benefit the company, EBet said. The measures will also likely cause EBet to miss its revenue guidance for the year and earn less than the projected $70 million.
As part of its profitability plan, EBet also plans to reassign its resources and double down on its iGaming efforts. In addition, the company will invest less in esports products that do not generate revenue. The esports firm hopes that this new strategy will help it return to a positive EBITDA as soon as this month.
EBet’s CEO Is Optimistic about the Company’s Future
Aaron Speach, chief executive officer of EBet, is optimistic about the future of the company and the new profitability plan. He noted that EBet has grown a lot and has reached what he calls a major inflection point. Speach is positive that his company would be able to quickly recover and reach positive EBITDA this month.
Speach also said that he has never been as excited about EBet’s future as he is now. He believes the company will quickly rebalance its business and return to generating increased profits.
I have never been this excited about EBet’s future for our executive team and our shareholders. We are seeing significant scalable gains and look to continue the path to increase profitability and shareholder value.
Aaron Speach, CEO, EBet
EBet was formerly known as Esports Technologies. However, the company changed its name to better reflect its expanded vision.