Business
Fantasy Aces Daily Fantasy Sports Corp. Reviews 2015 Activities and Provides 2016 Update
Fantasy Aces Daily Fantasy Sports Corp. Reviews 2015 Activities and Provides 2016 Update.
About this update from Fantasy Aces Daily Fantasy Sports C
[{"type":"text","content":"\n \n \n Fantasy Aces Daily Fantasy Sports Corp. Reviews 2015 Activities and Provides 2016 Update\n \n \nFantasy Aces Daily Fantasy Sports Corp. Reviews 2015 Activities and Provides 2016 Update\n \n ALISO VIEJO, CALIFORNIA--(Marketwired - May 2, 2016) - Fantasy Aces Daily Fantasy Sports Corp. (the \"Corporation\" or \"Fantasy Aces\") (TSX VENTURE:FAS)(OTC PINK:FASDF) is pleased to provide investors with a corporate update. \n Fantasy Aces ended 2015 with impressive year over year growth in multiple categories, retaining its position within the top six of Daily Fantasy Sports (\"DFS\") active companies, led by the two market leaders DraftKings and FanDuel. \n However; the Corporation had a sizeable operating deficit in 2015. The 2015 yearend financials are available in SEDAR. Two primary factors contributed to this deficit:\n Overlay: Guarantee Prize Pools (\"GPP\"), which is an industry retention standard. If the Corporation fails to fill all the \"seats\" in a GPP contest, it's up to the Corporation to cover the difference. Fantasy Aces dramatically increased the size of the GPP contests starting in September 2015 to increase revenue and attract new users. Concurrent with these higher prize offerings was the industry regulatory situation which measurably lowered the user participation expected for these contests. This was a significant cost in 2015, as the Corporation averaged Overlay of greater than 100% on its NFL tournaments. Fantasy Aces has made significant changes to its contest creation and management in 2016, and as a result of those changes it has lowered the average overlay percentage in April 2016 to less than 30%, an important reflection of the operating margins expected going forward.\n User Intensity: There was a measurable reduction in our user's intensity starting in October, 2015 concurrent with the regulatory situation. That reduction was measured on all DFS sites. It not only affected the GPP tournaments but also the non-guaranteed \"cash tournaments.\" In 2016, the Corporation has seen both the intensity of its users, as well as an increase in its user base, grow measurably, an indication that much of this anxiety is receding.\n Fantasy Aces performance versus the DFS regulatory process\n This regulatory process has slowed the industry's trajectory since October 2015, but not the rate at which Fantasy Aces h...