Today's News

• Revenue of $21.3M in Q2 2023
• A-EBITDA of $2.5M in Q2 2023
• New C-Suite delivers on cost optimizations

Vancouver, BC, August 17, 2023--(T-Net)--East Side Games Group (TSX: EAGR) (OTC: EAGRF), today announced financial results for the second quarter ended June 30th, 2023. All amounts are stated in Canadian dollars on an IFRS basis unless otherwise indicated.

The Company says it is continuing a strong 2023 with revenue of $21.3 million and A-EBITDA of 11.8%. This brings H1 of 2023 to $45.6 million revenue and $5.1 million A-EBITDA.

Q2 saw no new game releases but heavy investment in the company's pipeline of new titles.

ESGG has seven LiveOps titles which generate 95% of their revenue with no one title comprising more than 25%. They have six titles in active development which are slated for worldwide launch in the next year, as well as several projects with longer time horizons.

Three months ended June 30th, 2023 Highlights:

• For the quarter ended June 30th, 2023, revenue was $21.3 million.
  
  
• Q2 2023 A-EBITDA was $2.5 million, a margin of 11.7%. The 3rd consecutive quarter over $2.5M.
  
  
• Cash for the Company at June 30, 2023 was $2.8 million compared to $5.7 million at December 31, 2022. The decrease was due to the timing of Apple's monthly payments and there is a corresponding increase in accounts receivable. In addition, payables decreased due to the timing of minimum guarantee IP payments.
  
  
• Daily Active Users in Q2 were 273K. Average Revenue per Daily Active User was $0.92.
  
  
• On August 11, 2022, the Company announced its intention to buy back up to 4,076,819 shares under its NCIB. Through June 30, 2023, the Company purchased 682,653 shares. The company continues to buy back stock as aggressively as it can under the restrictions for such programs.
  
  
• ESGG thanked Birgit Troy and Darcy Taylor for their service on the company's board. Effective today, Jeremy Pierce and Dr. Russell Ovans will be joining their board as new members.
  
  
• ESG was named a finalist in the Technology Impact Awards Company of the Year.

ABOUT EAST SIDE GAMES GROUP

East Side Games Group is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty.

Our studio groups entrepreneurial culture is anchored in creativity, execution, and growth through licensing of our proprietary Game Kit software platform that enables professional game developers to greatly increase the efficiency and effectiveness of game creation in addition to organic growth through a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, Star Trek: Lower Decks - The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who: Lost in Time, RuPaul's Drag Race Superstar, Cheech and Chong Bud Farm, and Trailer Park Boys: Grea$y Money.

Certain information provided in this news release is extracted from the consolidated financial statements (the "Financial Statements") and Management's Discussion & Analysis ("MD&A") of the Company for the three months and six months ended June 30, 2023 and should be read in conjunction with them. It is only in the context of the fulsome 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.