ESE - This Company Could Be A Hidden Gem of the Gaming and Esports Industry
(NewsDirect)
By Ernest DelaAglanu, Benzinga
The growth of gaming and esports has been nothing short ofremarkable in recent years. From the rise of competitive gaming to theemergence of streaming platforms, the gaming industry has seen amassive surge in popularity — and only in the last five or so yearshas the market seen significant gaming and esports IPOs.
In the early days ofgaming, it was mostly a hobby for a select few. The rise of onlinegaming has allowed gamers to connect from all over the world, creatinga vibrant and competitive gaming community. Now, with publicly tradedplayers across the industry, both gamers and traders are getting in onthe action.
Theemergence of esports actively being powered by companies like ESEEntertainment Inc. (TSXV: ESE) (OTCMKTS: ENTEF) has been a majorfactor in the growth of gaming. Esports tournaments have becomeincreasingly popular, with millions of viewers tuning in to watch thebest players compete.
The widespread adoption and playing of games mean industryrevenues are growing. The global gaming market was worth $202.64billion in 2021 and is expected to expand at a compound annualgrowth rate (CAGR) of 10.2% from 2022 to 2030. Innovation andtechnological proliferation in software and hardware are key factorsfueling the market's growth.
Time To Pay Attention To ThisLittle-Known Player?
ESE Entertainment was founded in 2019 by Konrad Wasiela, aformer professional football player. Today, ESE has grown to consistof multiple assets and world-class operators in the gaming and esportsindustries. Its core expertise is in bringing new users and players tovideo game developers, and increasing game publicity. Through itstechnology, ESE becomes a key part of video game developer team’s inorder to make their game launches successful.
The company has providedbillions of user impressions to keep the games of game publishers like Roblox Corp. (NYSE: RBLX), Riot Games , ElectronicArts Inc (NASDAQ: EA), and Ubi Soft Entertainment (OTCMKTS:UBSFY) filled to the brim. ESE asserts that its core expertise isbringing new users and players to video game developers and increasinggame publicity with a consistent and proven track record.
BigData And Artificial Intelligence
Another significant product offering from thecompany is its intelligence product, Singularity, a machine learningtechnology product that creates individualized marketing profiles –resulting in more efficient and profitable player acquisitioncampaigns. The technology opens up big query capabilities and providesreal-time analytics, reporting, and machine learning for customers andthe company. Additionally, ESE recently announcedintegrating ChatGPT into its business models .
All in all, ESE is adata company and makes money in a similar way to social mediaplatforms like Meta Platforms (NASDAQ: META)’s Facebook —by acquiring a game user by advertising and selling the user to a gamepublisher, ESE makes revenue based on the difference in value.
The company also isexpanding the same business model of user acquisitions to other linesof business within gaming to sports wagering, which is another largemarket itself and with higher margins based on the value of theplayer.
Company Highlights
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The company’sannual revenue run rate is $64 million (based on fiscal Q3 2022revenue).
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The company grewrevenues by 276% between fiscal Q3 2021 to Q3 2022.
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ESE has strong management with provenresults and industry expertise.
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The company has a tight capital structure with limited downwardpressure.
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Its valuation is at approximately 0.5 times the last twelvemonths (LTM) revenue, with comparables being at more than twicethat.
Experienced Management Team And Growth
Backed by Konrad Wasielaand a team with more than 50 years of combined experience in theentertainment and sports industries, the company believes it has therequisite skill pool to ensure transparency, longevity, andresults.
ESE isdiversified with valuable resources globally and could be uniquelypositioned to capitalize on the hottest consumer trends in theevolving video game industry. The company remains committed to pushingthe boundary while solidifying its reputation as a leader to itsinvestors, partners, and clients.
This article was originally published onBenzinga here .
Thecompany was founded in 2019 by Konrad Wasiela, a former professionalfootball player. Today, ESE has grown to consist of multiple assetsand world-class operators in the gaming and esports industries. Ourcore expertise is in bringing new users and players to video gamedevelopers, and increasing game publicity. Through our process andtechnology, we become a key part of your team in order to make yourgame a success.
This news release contains certainstatements that may constitute forward-looking information underapplicable securities laws. All statements, other than those ofhistorical fact, which address activities, events, outcomes, results,developments, performance or achievements that ESE anticipates orexpects may or will occur in the future (in whole or in part) shouldbe considered forward-looking information. Such information mayinvolve, but is not limited to, statements with respect to: thedetails of the W3GA event, and the success and impact thereof; and thegrowth of, and opportunities in, the web3 gaming market. Often, butnot always, forward-looking information can be identified by the useof 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, orstatements formed in the future tense or indicating that certainactions, events or results “may”, “could”, “would”,“might” or “will” (or other variations of the forgoing) betaken, occur, be achieved, or come to pass. Forward-lookinginformation is based on currently available competitive, financial,and economic data and operating plans, strategies or beliefs as of thedate of this news release, but involve known and unknown risks,uncertainties, assumptions and other factors that may cause the actualresults, performance or achievements of ESE to be materially differentfrom any future results, performance or achievements expressed orimplied by the forward-looking information. Such factors may be basedon information currently available to ESE, including informationobtained from third-party industry analysts and other third-partysources, and are based on management’s current expectations orbeliefs regarding future growth, results of operations, future capital(including the amount, nature and sources of funding thereof) andexpenditures. Any and all forward-looking information contained inthis press release is expressly qualified by this cautionarystatement. Trading in the securities of ESE should be consideredhighly speculative.
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