Enthusiast Gaming Unveils $10 Million Cost Reduction Program

Sharpens Focus on Engaged Communities and Prioritizes High-Margin Revenue for Enhanced Profitability

Announces Date for Fourth Quarter 2023 Earnings

LOS ANGELES, March 07, 2024 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX), a leading gaming and media company, today announced that it has undertaken a series of strategic and operational actions designed to enhance the Company’s business model in the areas most critical to its future success, renewing its commitment to the growth and development of its highly engaged gaming communities and focusing the business on drivers of high-margin revenue growth and sustainable profitability.

These actions, taken after a comprehensive organizational review initiated at the beginning of the year, are expected to generate $10 million in annual run-rate savings and will be completed largely by the end of Q1 2024. Cost savings initiatives and operational efficiencies include efficiencies in ad tech, the consolidation of offices, the insourcing of production and content resources, headcount reductions and other areas. Enthusiast Gaming's immediate priority is to enhance organizational effectiveness and community engagement.

“The changes that we have initiated will further enable Enthusiast Gaming to operate with a more sustainable organizational design, leveraging our valuable owned and operated communities, where we will continue to deliver the best experiences for our members and stakeholders, and with that, the strongest financial performance,” commented Adrian Montgomery, Chairman and Interim CEO of Enthusiast Gaming. “We remain focused on execution and building a platform of sustainable profitability. While reducing the size of our team is an extremely difficult decision for any company, we are incredibly grateful to all of our employees for the roles they have played in building Enthusiast Gaming to where it is today.”

The Company will share further details about its strategic restructuring during its earnings call for its fourth quarter 2023 results.

Fourth Quarter and Full Year 2023 Earnings and Conference Call

Enthusiast Gaming will report financial and operating results for its fourth quarter ending December 31, 2023, after the market closes on Monday, April 1, 2024. A conference call and audio webcast will also be held at 5:00 p.m. ET that same day to discuss the results and answer any questions.

Live conference call: 1-855-239-1101 (Toll Free) or 1-412-317-5231 (Conference ID: 10187154)
Live webcast: https://viavid.webcasts.com/starthere.jsp?ei=1660990&tp_key=d2cb2eac63

An archived recording of the webcast will be available on the Investor Relations page of the Enthusiast Gaming website, enthusiastgaming.com/investors.

Contacts

Enthusiast Gaming: Felicia DellaFortuna, CFO
Investors: FNK IR, Matt Chesler, CFA – [email protected]
Media: [email protected]

About Enthusiast Gaming

Enthusiast Gaming is a leading gaming media and entertainment company, building the largest platform for video game enthusiasts and esports fans to connect and compete worldwide. Combining the elements of its five core pillars: creators, content, communities, games, and experiences, Enthusiast Gaming provides a unique opportunity for marketers to create integrated brand solutions to connect with coveted Gen Z and Millennial audiences. Through its proprietary mix of digital media, content and gaming assets, Enthusiast Gaming continues to grow its network of communities, reflecting the scale and diversity of gaming enthusiasts today.

Forward Looking Information

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 Gaming anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. 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 statements in this news release include, but are not limited to, statements regarding its strategic focus and plans, the annual run-rate savings to be generated by the cost savings initiatives undertaken by the Company, and the Company’s intended cost savings initiatives and the results thereof.

Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, expectations and assumptions concerning interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and growth rates; the success in the esports and media industry; and the Company’s growth plan. While Enthusiast Gaming considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; the timing and filing of the final base shelf prospectus and corresponding Registration Statement; the potential offering of any Securities by the Company; uncertainty with respect to the completion of any future offering; the ability to obtain applicable regulatory approvals for any contemplated offerings; the ability of the Company to negotiate and complete future funding transactions; adverse industry events; and future legislative, tax and regulatory developments. Readers are cautioned that the foregoing list is not exhaustive. For more information on the risk, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of Enthusiast Gaming which are available on SEDAR+ at www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. Enthusiast Gaming disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

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.