Esports Entertainment: Recent Acquisitions Further Symbolize Managements Strategy

Esports Entertainment: Recent Acquisitions Further Symbolize Managements Strategy

Esports Entertainment is an online gambling company that offers esports entertainment, esports wagering and igaming and traditional sports betting. The company offers odds wagering, fantasy and pools on various esports events on its licensed and secure Vie.gg wagering platform and owns and operates an online sports book at SportNation.bet. In late 2020 Esports Entertainment became the first esports-focused gaming business to acquire a US gambling license.

November 18, 2021

Price (as of close on November 17, 2021)

$6.13

Rating

BUY

12- Month Target Price

Esports Entertainment (GMBL)

Esports Entertainment revenues improve 86% sequentially and rise $16.2 million YOY. The Company guides for 490% revenue growth and FY:22 revenues exceeding $100 million. .     

Q1:22 Highlights

➢ GMBL operates esports gaming platforms and event venues and owns proprietary esports infrastructure and technology. The Company is securing marquee partnerships with professional sports teams that are bringing new players to its gaming sites and supplementing its digital assets with on-site Helix game centers.

➢The Company’s Q1:22 revenues improve 86% sequentially to $16.4 million and gross margin improved 200 basis points to 61% from 59% one quarter ago. Operating loss narrowed to $8.6 million from $10.5 million one quarter earlier.

➢GMBL recently closed the acquisition of Bethard, which provides gaming licenses in Sweden and Spain and another $30 million in annualized revenues. The Company has closed six major acquisitions in the last 12-14 months and will focus in FY:22 on integrating, cross-selling and realizing synergies from its acquired businesses.

➢The Company anticipates securing its New Jersey gaming license before year-end and plans to pursue gaming licenses in Ohio and the Canadian province of Ontario in 2022.

➢GMBL is guiding for FY:22 revenues exceeding $100 million and positive adjusted EBITDA in late FY:22..

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