By Ernest Dela Aglanu, Benzinga
The growth of gaming and esports has been nothing short of remarkable in recent years. From the rise of competitive gaming to the emergence of streaming platforms, the gaming industry has seen a massive surge in popularity — and only in the last five or so years has the market seen significant gaming and esports IPOs.
In the early days of gaming, it was mostly a hobby for a select few. The rise of online gaming has allowed gamers to connect from all over the world, creating a vibrant and competitive gaming community. Now, with publicly traded players across the industry, both gamers and traders are getting in on the action.
The emergence of esports actively being powered by companies like ESE Entertainment Inc. (TSXV: ESE) (OTCMKTS: ENTEF) has been a major factor in the growth of gaming. Esports tournaments have become increasingly popular, with millions of viewers tuning in to watch the best players compete.
The widespread adoption and playing of games mean industry revenues are growing. The global gaming market was worth $202.64 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.2% from 2022 to 2030. Innovation and technological proliferation in software and hardware are key factors fueling the market's growth.
Time To Pay Attention To This Little-Known Player?
ESE Entertainment was founded in 2019 by Konrad Wasiela, a former professional football player. Today, ESE has grown to consist of multiple assets and world-class operators in the gaming and esports industries. Its core expertise is in bringing new users and players to video game developers, and increasing game publicity. Through its technology, ESE becomes a key part of video game developer team’s in order to make their game launches successful.
The company has provided billions of user impressions to keep the games of game publishers like Roblox Corp. (NYSE: RBLX), Riot Games, Electronic Arts Inc (NASDAQ: EA), and Ubi Soft Entertainment (OTCMKTS: UBSFY) filled to the brim. ESE asserts that its core expertise is bringing new users and players to video game developers and increasing game publicity with a consistent and proven track record.
Big Data And Artificial Intelligence
Another significant product offering from the company is its intelligence product, Singularity, a machine learning technology product that creates individualized marketing profiles – resulting in more efficient and profitable player acquisition campaigns. The technology opens up big query capabilities and provides real-time analytics, reporting, and machine learning for customers and the company. Additionally, ESE recently announced integrating ChatGPT into its business models.
All in all, ESE is a data company and makes money in a similar way to social media platforms like Meta Platforms (NASDAQ: META)’s Facebook — by acquiring a game user by advertising and selling the user to a game publisher, ESE makes revenue based on the difference in value.
The company also is expanding the same business model of user acquisitions to other lines of business within gaming to sports wagering, which is another large market itself and with higher margins based on the value of the player.
The company’s annual revenue run rate is $64 million (based on fiscal Q3 2022 revenue).
The company grew revenues by 276% between fiscal Q3 2021 to Q3 2022.
ESE has strong management with proven results and industry expertise.
The company has a tight capital structure with limited downward pressure.
Its valuation is at approximately 0.5 times the last twelve months (LTM) revenue, with comparables being at more than twice that.
Experienced Management Team And Growth
Backed by Konrad Wasiela and a team with more than 50 years of combined experience in the entertainment and sports industries, the company believes it has the requisite skill pool to ensure transparency, longevity, and results.
ESE is diversified with valuable resources globally and could be uniquely positioned to capitalize on the hottest consumer trends in the evolving video game industry. The company remains committed to pushing the boundary while solidifying its reputation as a leader to its investors, partners, and clients.
This article was originally published on Benzinga here.
The company was founded in 2019 by Konrad Wasiela, a former professional football player. Today, ESE has grown to consist of multiple assets and world-class operators in the gaming and esports industries. Our core expertise is in bringing new users and players to video game developers, and increasing game publicity. Through our process and technology, we become a key part of your team in order to make your game a success.
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 ESE anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, statements with respect to: the details of the W3GA event, and the success and impact thereof; and the growth of, and opportunities in, the web3 gaming market. 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 information is based on currently available competitive, financial, and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of ESE to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to ESE, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of ESE should be considered highly speculative.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice