The Ebet Inc (NASDAQ: EBET) stock price surged 78.07% as of 7:40 EST despite the lack of news releases from the gambling company today. However, the company recently released its quarterly results for the quarter that ended on 30 June 2023, which could be the trigger behind today’s rally as part of a delayed response.
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The company released its quarterly results on August 14, 2023, just two days ago, which could explain today’s rally higher. Furthermore, the rally higher in EBET stock was also driven by the elevated investor interest in the company because over 72.34 million EBET shares had changed hands at writing.
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Ebet’s Q2 results showed that it generated revenues worth $7.97 million during the quarter, marking a significant decline from the $18.17 million revenue generated in Q2 2022. The company’s gross profit was $3.77 million, compared to last year’s $7.25 million.
The company’s loss from operations ballooned to $34.73 million versus the $6.99 million recorded in a similar period last year. The company also revealed that it had received a notice from the gaming regulatory authority in Germany to shut down its operations by May 7, 2023.
EBET tried to appeal the short deadline, given that it had received the notice on April 25, 2023, but was unsuccessful and had to terminate its German operations. The German operations had contributed revenues worth $9.69 million in the nine months to June 30, 2023, with the figure being $12.81 million in June 2022.
The company’s operations were adversely affected by the cessation of its German operations as it works hard to earn the necessary regulations to operate in the country. The company also noted that it would need to raise additional funding because it continues to operate at a loss.
The gambling company noted a significant and prolonged decrease in consumer spending on entertainment or leisure activities would negatively affect the demand for its products and services, reducing its cash flows and revenues.
Today’s rally in EBET’s stock price may not be related to its quarterly earnings report. Maybe the company is making progress in its strategic review.
EBET stock price.
The EBET stock price surged 78.07% to trade at $0.0739, rising from Tuesday’s closing price of $0.0415.
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