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Enthusiast Gaming $EGLX.ca – The Battle for #Esports Dominance is on $INTC $TMUS $NKE $SAP

Posted by AGORACOM-JC at 4:18 PM on Friday, October 18th, 2019

SPONSOR: Enthusiast Gaming Holdings Inc. (TSX-V: EGLX) Uniting gaming communities with 85 owned and affiliated websites, currently reaching over 150 million monthly visitors. The company exceeded 2018 target with $11.0 million in revenue. Learn More

The Battle for Esports Dominance is on

  • As esports teams battle out in front of millions of fans online, companies are engaging in similar warfare as they look to lock up sponsorship deals with some of the most prized assets in the industry
  • This year, esports sponsorship revenue is projected to be the highest revenue stream at US$456.7 million, growing 34.3% from 2018 (NewZoo, 2019)

By: Ben Feferman

The race is on! As esports teams battle out in front of millions of fans online, companies are engaging in similar warfare as they look to lock up sponsorship deals with some of the most prized assets in the industry. This year, esports sponsorship revenue is projected to be the highest revenue stream at US$456.7 million, growing 34.3% from 2018 (NewZoo, 2019). As casual fans continue to tune into extended amounts of esports content daily, businesses are beginning to understand the value proposition that esports presents; an industry that is ubiquitous, interactive and rapidly growing. In turn, sponsors provide vast amounts of financial resources that help transcend the nature of esports events, teams and players, alike.

Top Sponsors in Esports

Intel (NASDAQ: INTC)

From producing CPUs to dabbling in the game, Intel has held the longest sponsorship in esports with the Electronic Sports League (ESL). The two companies announced a partnership in which they will invest US$100 million towards esports initiatives to help the global growth and expansion of esports. Intel also sponsors many large esports events, including Intel Extreme Masters, ESL One, Intel Grand Slam, Counter-Strike: Global Offensive Pro League and the LPL league.

T-Mobile (NASDAQ: TMUS)

T-Mobile is a telecommunications company that started sponsoring some major teams very early. In 2017, T-Mobile was sponsoring both Cloud 9 and TSM, some of the largest esports teams in North America. Although they no longer sponsor those teams, T-Mobile continues to make an impact in the Overwatch League (OWL) by sponsoring the league and two of its teams, the Houston Outlaws and New York Excelsior.

BMW (ETR: BMW)

BMW is switching gears in 2019 as it begins to watch the esports landscape closely. The automotive company not only sponsored its first esports team in 2019 in Cloud 9, but also partnered with Brazil’s paiN Gaming in the same year.

Nike (NYSE: NKE)

It is hard to imagine a competitive environment in this world that does not have Nike’s footprint. Nike treats esports the exact same way. Nike supports esports athletes, such as Jain “Uzi” Zihao (Chinese League of legends Pro), through endorsement deals and sponsors the Chinese League of Legends Pro League, supplying the entire 16 team roster with Nike apparel. Through these synergies, Nike hopes to create sportswear catered to the esports audience and training programs for gamers to improve.

SAP (NYSE: SAP)

In a data-driven age, where analytics are helping countless athletes improve, it is only natural for electronic sports to follow the same path. In 2018, SAP, a business software company, announced a three-year sponsorship with Team Liquid to help improve the team’s performance through innovation in data driven analysis. SAP will use its SAP Huna, a business analytics platform, along with Team Liquid’s DOTA team’s collaboration to help pioneer the first wave of deep game analysis. SAP also sponsors large events, such as ESL and DreamHack, to provides these live events with data analysis using its cloud platform.

As the arms race heats up for dominance in esports sponsorships, the companies with established relationships with top tier teams and leagues will have a strong first to market advantage. However, with the centrality and fragmentation of the industry, there are still many untapped pockets for new entrants.

The vast majority of esports companies, be in teams, franchises or content plays, will be relying on corporate sponsorships to drive revenue and these companies know, sponsorships are what will continue to drive their valuations. This market is going to heat up and get way more interesting.

Other Large Esports Sponsors.

  • Honda (TYO: 7267) – Team Liquid
  • Monster Beverage Corp (NASDAQ: MNST) – PSG Esports
  • Nissan (TYO: 7201) – FaZe Clan, Optic Gaming
  • Puma (ETR: PUM) – Cloud 9
  • HTC Cord (TPE: 2498) – FaZe Clan
  • Pepsi (NASDAQ: PEP) – Team Dignitas, Splyce, Sk Gaming
  • Disney (NYSE Disney) – Team Liquid
  • Daimler AG (ETR: DAI) – ESL
  • Razor (HKG: 1337) – Immortals, Evil Geniuses, Seoul Dynasty, LA Valiant, EDG,

Source: https://investorintel.com/sectors/esports-gaming/esports-gaming-intel/battle-for-esports-dominance/

Enthusiast Gaming $EGLX.ca – Visualized: The #Esports Journey to Mainstream $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 11:34 AM on Friday, October 18th, 2019

SPONSOR: Enthusiast Gaming Holdings Inc. (TSX-V: EGLX) Uniting gaming communities with 85 owned and affiliated websites, currently reaching over 150 million monthly visitors. The company exceeded 2018 target with $11.0 million in revenue. Learn More

Visualized: The Esports Journey to Mainstream

Although esports might seem like a relatively new phenomenon, its origins can be traced all the way back to the 1970s.

It was only in the past decade however, that a wave of technological innovation transformed the entire industry from an underground niche into a billion-dollar mainstream phenomenon.

Today, the nascent esports industry competes with some of the biggest sports leagues in the U.S., while global tech giants hastily invest billions of dollars to make their mark in what many consider to be the future of sports and entertainment.

How did it evolve into the industry we know today—and more importantly, will it maintain its furious pace of growth?

The History of Esports

Electronic sports (or esports), are organized, multiplayer video game competitions commonly played by professional gamers. Since its inception, the industry has continued to exceed expectations and reach new milestones every decade.

Note: The timeline of events are an abridged version of major achievements in the industry.

1970s: The Birth of Esports

The earliest known video game competition—the Intergalactic Spacewar Olympics—took place in 1972 at Stanford University. The winner of the event received an annual subscription to Rolling Stone magazine.

While it was a modest first prize for the industry, it would set a foundation for future prize pools in the millions of dollars.

1980s: More Gaming Options

The 1980s ushered in better consoles for esports. The Nintendo Entertainment System (NES) took graphics, controls, gameplay, and video game accessibility to the next level.

Five years later, the Sega Genesis console was released in the U.S. and Japan to compete with Nintendo—which held a 95% market monopoly at the time.

1990s: The First Tournaments

Nintendo increased its commitment to esports by hosting the Nintendo World Championships. After touring 30 cities in the U.S., the finals challenged players to games like Super Mario Bros. and Tetris, with a 40-inch TV awarded to the winner.

Developers and gaming entrepreneurs created a flurry of leagues, including QuakeCon in 1996, followed by both the Cyberathlete Professional League (CPL) and the Professional Gamers League (PGL) in 1997.

In just a few years, these competitions helped esports gain significant traction.

2000s: The Explosion of Esports

Esports fully burst into the mainstream with Amazon’s acquisition of Twitch for $970 million in 2014. The live video game streaming site gave esports a platform to reach previously unthinkable heights, with popular games like League of Legends (LoL) and Defense of the Ancients 2 (Dota) receiving millions of views.

In 2019, Google followed suit with its Stadia streaming service. The cloud-based video game platform aims to eliminate the need for hardware, allowing Google to aggressively compete in the esports space.

A Snapshot of Esports Today

The increasing involvement of developers and global tech giants has not only increased the audience size of esports—it has also led to bigger prize pools, and larger scale competitions across the world.

  • Demographics: 50% of esports viewership now comes from Asia.
  • Engagement: 6 billion hours were dedicated to watching esports in 2018, and will continue to grow to 9 billion by 2021.
  • Buy-in: The price of one of the 12 Overwatch League teams for sale in 2017 was $20 million.
  • Incentives: The Fortnite competition prize pool for the 2018 season was $100 million—equal to the entire esports prize pool in 2017.

It’s clear that esports continues to attract rapidly growing audiences at an unprecedented rate. However, there are still significant barriers inhibiting the industry from reaching its full potential.

The Future of esports

In order to maintain its furious pace of growth, the esports industry must first address five key challenges:

  • Diversity of game genres: The industry will need to produce more game genres in order to appeal to a wider audience outside of its current player base.
  • Geographic expansion of leagues: esports will need to expand to national, regional, and global levels if it wants to tap into bigger advertising budgets. However, while esports gains attention from global media, local events are more difficult to organize.
  • Regulation of competitions: With multimillion-dollar prize pools at stake, new rules and regulations are needed to combat cheating and match fixing.
  • Ownership of media rights: Content rights have not been a focus for publishers, as fan-generated content has served as free advertising for their games.
  • Media alignment: Traditional media brands are still reluctant to associate themselves with esports, as prejudices against competitive gaming still exist. For example, gaming culture is viewed as a harmful distraction, rather than a legitimate sport.

In less than 50 years, esports has evolved into a dominant form of entertainment today, eclipsing film and music industries by a wide margin. With an increasingly mainstream audience, the industry’s popularity and profitability shows no signs of slowing down—despite the challenges it faces.

Source: https://www.visualcapitalist.com/visualized-the-esports-journey-to-mainstream/

Enthusiast Gaming $EGLXc.a Partners With Global Sportswear Brand, Champion, to Create Luminosity Clothing Line $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 7:19 AM on Friday, October 18th, 2019
  • Announced that it has partnered with Hanesbrands Inc.’s Champion® brand to create custom apparel  for Enthusiast Gaming’s Esports Division, Luminosity Gaming and loyal fans worldwide
  • Exclusive launch at Enthusiast Gaming Live Expo, EGLX, October 18-20 in Toronto

TORONTO, Oct. 18, 2019  — Enthusiast Gaming Holdings Inc. (TSXV: EGLX)(FSE: 2AV) (“Enthusiast Gaming” or the “Company”) is excited to announce that it has partnered with Hanesbrands Inc.’s (“HBI”) Champion® brand to create custom apparel  for Enthusiast Gaming’s Esports Division, Luminosity Gaming (“Luminosity”) and loyal fans worldwide. With over 50 professional esports players and influencers reaching 60 million collective followers, the collaboration with the Champion® brand reconfirms Luminosity’s brand power as one of the largest, globally recognized esports organizations in the world. 

Steve Maida, President of Enthusiast Gaming’s Esports Division, Luminosity Gaming commented, “For a brand as powerful as Champion to partner with our Esports Division, Luminosity Gaming, further proves the dominance and sheer size of the gaming and esports industry. We can now offer our fanbase of over 60 million an opportunity to buy exclusive Luminosity gear and proudly represent Team Luminosity. HBI’s Champion® brand is a leader in providing merchandise and attire to loyal esports fans, and we are excited to continue collaborating with them to create our unique Luminosity+Champion clothing line.”

The Luminosity+Champion custom apparel will launch at Enthusiast Gaming Live Expo, EGLX, taking place on October 18 – 20, at the Metro Toronto Convention Centre in downtown Toronto. With 55,000 attendees in 2018, EGLX is the largest video game expo and esports tournament in Canada. Attendees of the expo will have an exclusive chance to purchase the Luminosity+Champion apparel and represent Team Luminosity. The Luminosity roster includes esports influencers Nicks, Kiwiz, Formula and Plu, Grammy-nominated rapper Tory Lanz, and Team Captain, NFL star Richard Sherman. 

Following EGLX, the Luminosity+Champion custom apparel will be available exclusively on Luminosity’s website (Luminosity.gg), and through the organization’s social media channels. 

Tyler Lewison, General Manager of Champion® Teamwear (a division of HBI) commented, “Luminosity Gaming is one of the largest globally recognized esports organizations in North America. They share the same passion that we have at Champion Teamwear: to support esports athletes worldwide and positively contribute to the rapid growth of an exciting up-and-coming sport. This collaboration allows players and fans to experience high-quality, comfortable Champion® apparel while supporting one of the most exciting teams in the industry.”

In addition to the partnership with the Champion® brand, Enthusiast Gaming has partnered with some of the world’s leading brands including Activision Blizzard, Ubisoft, Foodora, Nintendo, Bell, and Microsoft. As the gaming and esports sector continues to grow, more non-endemic brands are starting to enter the space; as the largest gaming network in the U.S., reaching over 200 million global gamers monthly, Enthusiast Gaming is a leading option for brands looking to reach the gamer demographic.

About Champion 

Since 1919, HBI has offered a full line of innovative athletic apparel for men and women including activewear, sweats, tees, sports bras, team uniforms and accessories under its Champion® brand. HBI uses innovative design and state-of-the-art product testing to ensure uncompromised quality and innovative apparel for our consumers. Champion® athleticwear can be purchased at department stores, sporting goods, specialty retailers, and at Champion.com. For more information, please contact us at 1-800-315-0563 or at Facebook.com/Champion, follow us on Twitter @Championusa or on Instagram @Champion. Champion® is a brand of Hanesbrands Inc. (NYSE:HBI).The Champion® trademarks are owned by HBI Branded Apparel Enterprises LLC a wholly-owned subsidiary of Hanesbrands, Inc.

About Enthusiast Gaming 

Enthusiast Gaming (TSX.V: EGLX)(FSE: 2AV) is building the world’s largest network of communities for gamers and esports fans. Already the largest gaming network in the U.S., the Company’s business is comprised of three main pillars: Media, Events and Esports. Enthusiast Gaming’s digital media platform includes 100+ gaming related websites and 900 YouTube channels which collectively reach 150 million visitors monthly. The media network generates over 30 billion ad requests and over 1 billion page views per month. Enthusiast’s esports division, Luminosity Gaming, is a leading global esports franchise that consists of 7 professional esports teams under ownership and management, including  the Vancouver Titans Overwatch team and the Seattle-based Call of Duty team. Collectively, the integrated ecosystem reaches over 200 million gaming enthusiasts on a monthly basis. Enthusiast Gaming’s event business, owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.com) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com. For more information on Luminosity Gaming, please visit luminosity.gg

CONTACT INFORMATION:

Investor Relations: 

Julia Becker
Head of Investor Relations & Marketing
[email protected]
(604) 785.0850 

Forward-Looking Information
Certain statements in this release are forward-looking statements.  Forward looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of Enthusiast Gaming.  The risks include risks that are customary to transactions of this nature and customary to companies which have their stock traded on the TSXV. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Enthusiast Gaming will obtain from them. 

This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
 
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Enthusiast Gaming $EGLX.ca – Can Investors Get a Piece of the #Esports Action? $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 12:46 PM on Thursday, October 17th, 2019

SPONSOR: Enthusiast Gaming Holdings Inc. (TSX-V: EGLX) Uniting gaming communities with 85 owned and affiliated websites, currently reaching over 150 million monthly visitors. The company exceeded 2018 target with $11.0 million in revenue. Learn More

Can Investors Get a Piece of the Esports Action?

There’s huge potential in this subsection of the video game world.

Motley Fool Staff

If you’re looking for an industry with a ton of rapid growth behind it and plenty of room for more ahead, you could do worse than to consider video games. The amount of time we spend on them is increasing at a ridiculous clip, as is the amount of money, and the global trends appear promising, which adds up to an opportunity for investors. If you don’t feel ready to take advantage, Motley Fool Answers co-hosts Robert Brokamp and Alison Southwick want to help.

For this podcast, they’ve invited senior analyst Jason Moser back into the studio, this time to talk about the current situation in the world of video games and esports from an investor’s perspective: which companies look strongest, how this particular business might move the needle for some more diversified companies, and more. In this segment, they focus specifically on the world of esports. So if you can’t quite imagine how watching other people play video games could evolve into the next breakout spectator sport, allow them to walk you through it.

To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center.

Something big just happened

I don’t know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations. Together, they’ve quadrupled the stock market’s return over the last 17 years.* And while timing isn’t everything, the history of Tom and David’s stock picks shows that it pays to get in early on their ideas.

Source: https://www.fool.com/investing/2019/10/16/can-investors-get-a-piece-of-the-esports-action.aspx

GRAPHIC: Enthusiast Gaming $EGLX.ca Partners With Global Casino Brand, PartyCasino.Fun $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 6:10 PM on Wednesday, October 16th, 2019

Enthusiast Gaming $EGLX.ca Partners With Global Casino Brand, #PartyCasino.Fun $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 9:40 AM on Wednesday, October 16th, 2019
  • PartyCasino.Fun, one of the world’s largest online casinos, to engage with gamers and esports industry at EGLX
  • Designed a customized marketing campaign with multiple touchpoints to gamers to target the sought after demographic
  • Partnership includes sponsor logo on Luminosity Jersey and sponsorship in EGLX 19+ Lounge to expand PartyCasino.Fun’s Canadian audience

TORONTO, Oct. 16, 2019 — Enthusiast Gaming Holdings Inc. (TSXV:EGLX) (FSE:2AV)(“Enthusiast Gaming” or the “Company”) is excited to announce that, in partnership with its esports division, Luminosity Gaming (“Luminosity”), it has entered into a sponsorship and partnership agreement (the “Agreement”) with PartyCasino.Fun, a leading online casino with over 500 games ranging from classics such as Blackjack and Roulette, to a wide variety of online slots.

Through the Agreement, PartyCasino.Fun’s logo will appear on Luminosity Gaming jerseys,  which will be visible during live streams and broadcast events, as well as in the online store. Additionally, PartyCasino.Fun will sponsor the 19+ gaming lounge at EGLX, providing mutual access and opportunity to another tier of gamers.

Enthusiast Gaming will run a series of polls that ask attendees to choose between a real-life location and a videogame location. After the poll’s conclusion in December, the results will be utilized on Enthusiast Gaming’s wide social media presence to promote PartyCasino.Fun as a personal getaway, giving PartyCasino.Fun a newfound Canadian reach.

The collaboration with PartyCasino.Fun unlocks a new audience segment for Enthusiast Gaming, the lucrative online gambling community. Enthusiast Gaming has multiple points of engagement to gamers which provides the unique ability to leverage the entire network of media, esports and events assets. Enthusiast Gaming’s newly hired direct sales team is already adding value by leveraging direct relationships with brands and agencies and offering a custom, targeted approach to reach the gamer demographic. The partnership with PartyCasino.Fun was driven by the sales team, and is a testament to how successful the overall strategy can be. 

Menashe Kestenbaum, President of Enthusiast Gaming commented, “The partnership with PartyCasino.Fun is exciting for us and validates the size and scale of our combined media and gaming platform. We used the sales and marketing expertise of our newly formed direct sales team, to create a unique, customized marketing strategy for PartyCasino.Fun to reach their media and sponsorship goals. It is encouraging to see our sales force already delivering value and driving revenue. We look forward to partnering with PartyCasino.Fun, and working closely with their team!”

Alessandro De Stasio, Head of Marketing of PartyCasino.Fun commented, “We are excited to have the chance to partner up with the largest gaming and esports organization in Canada. We are sure that the combination with our audiences will untap new marketing opportunities whether it comes to reach, events and/or activations.” 

About PartyCasino.Fun 

PartyCasino.Fun is the play for fun solution launched in H2 2019 with the scope to provide our customer a different online casino experience where no real money is involved. PartyCasino is the leading casino brand of GVC Holdings PLC (LSE:GVC) (“GVC”) and, as one of the world’s largest online casinos, houses over one thousand games between slot machines, blackjack, roulette and other table games. GVC runs four main product verticals: sports, casino, poker and bingo. GVC, a leading e-gaming operator in B2C and B2B markets, has licenses throughout several countries including Austria, Italy, United Kingdom, Denmark, Belgium, Germany and others. With multitudes of established brands under its belt that have a combined heritage of over 250 years, GVC is one of the biggest sports-betting and gaming groups in the world.

About Enthusiast Gaming 

Enthusiast Gaming (TSX.V: EGLX)(FSE: 2AV) is building the world’s largest network of communities for gamers and esports fans. Already the largest gaming network in the U.S., the Company’s business is comprised of three main pillars: Media, Events and Esports. Enthusiast Gaming’s digital media platform includes 100+ gaming related websites and 900 YouTube channels which collectively reach 150 million visitors monthly. The media network generates over 30 billion ad requests and over 1 billion page views per month. Enthusiast’s esports division, Luminosity Gaming, is a leading global esports franchise that consists of 7 professional esports teams under ownership and management, including  the Vancouver Titans Overwatch team and the Seattle-based Call of Duty team. Collectively, the integrated ecosystem reaches over 200 million gaming enthusiasts on a monthly basis. Enthusiast Gaming’s event business, owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.com) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com. For more information on Luminosity Gaming, please visit luminosity.gg

CONTACT INFORMATION

Investor Relations:

Julia Becker
Head of Investor Relations & Marketing
Telephone: 604-785-0850
Email: [email protected]

Forward-Looking Information

Certain statements in this release are forward-looking statements.  Forward looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of Enthusiast Gaming.  The risks include risks that are customary to transactions of this nature and customary to companies which have their stock traded on the TSXV. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Enthusiast Gaming will obtain from them. For instance, there can be no assurance that the acquisition will close as anticipated, that the acquisition will position the Company as a leader in the mobile gaming sector and that the acquisition will result in growth of the Company’s online and offline gaming community.

This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Enthusiast Gaming $EGLX.ca Hosts Canada’s Largest Gaming and #Esports Expo, EGLX, on October 18 – 20 in Toronto $EGLX.ca $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 7:18 AM on Tuesday, October 15th, 2019
  • Sponsors include: Bell Media, Ubisoft Canada, Nintendo, CIBC, HP Omen and MSI
  • Rising Stars Tournament with $40,000 prize pool and a sponsorship deal with Luminosity Gaming 
  • Rainbow Six Canada National Finals in partnership with Ubisoft Canada 
  • Special guests include: professional esports players SypherPK, JuniorPK and Destroy, and gaming personalities Greg Miller, Nick Scarpino and Andy Cortez of Kinda Funny, Craig Skistimas and Game Attack team, Bruce Green and Kris Wilson of Cyanide and Happiness
  • Gaming Industry Summit expert speakers include: Adam Boyes (CEO of Iron Galaxy), Rishi Chadha (Head of Gaming Content Partnerships, Twitter), Bryan Segal (SVP, Comscore)

TORONTO, Oct. 15, 2019 – Enthusiast Gaming Holdings Inc. (TSXV:EGLX)(FSE: 2AV) (“Enthusiast” or the “Company”) is excited to announce that the Enthusiast Gaming Live Expo (“EGLX”), Canada’s largest video gaming expo, is taking place Friday, October 18, to Sunday, October 20 at the Metro Toronto Convention Centre (“MTCC”) in downtown Toronto.

EGLX, which had over 55,000 attendees at last year’s events, is a celebration of everything gaming and esports. Attendees of EGLX 2019 can expect three jam-packed days featuring over 150 exhibitors, panels, cosplay, free play, the Artist Alley, an Indie Corner and a Family Zone.

EGLX 2019 will host the inaugural Rising Stars Tournament with a $40,000 prize pool and a sponsorship deal with Enthusiast Gaming’s Esports Division, Luminosity Gaming. The tournament gives promising gamers an opportunity to battle against each other in Fortnite, Super Smash Bros. Melee and Super Smash Bros. Ultimate. The winner of each game will be crowned the EGLX Rising Star and given the opportunity to attend three tournaments of their choice across North America. 

Corey Mandell, President of Enthusiast Gaming’s events division, EG Live, commented, “We continue to grow and expand our events business which includes almost 30 live gaming and esports events worldwide. Our goal has always been to provide interactive, in-person experiences for gamers to connect globally. At this year’s EGLX, we’ve almost doubled the floor space as we anticipate a significant increase in attendees. We have over 150 exhibitors and have seen an increase in non-endemic brand sponsors as gaming becomes more mainstream!”

With sponsors including Bell, Ubisoft Canada, CIBC, Nintendo, HP Omen and MSI, the expo is set to be stacked with more prizes and pre-release sneak peeks than ever before. EGLX attendees will get the opportunity to watch the finals of the Rainbow Six Canada Nationals, hosted on the main stage, in partnership with EGLX sponsor Ubisoft Canada.  

Special guests at EGLX include: professional esports athletes, SypherPK, JuniorPK, and Destroy and gaming personalities, Greg Miller, Nick Scarpino and Andy Cortez of Kinda Funny, Craig Skistimas and Game Attack team, Bruce Green and Kris Wilson of Cyanide and Happiness.

EGLX will kick off the expo on Friday October 18 with the Gaming Industry Summit, a one-day event where over 200 investors and gaming enthusiasts will listen to experts discuss the gaming industry and how to invest in the 150 billion dollar sector. Confirmed industry experts include: Keynote, Adam Boyes, CEO of Iron Galaxy and former VP at Sony PlayStation; Rishi Chadha, Twitter’s Head of Gaming Content Partnerships and Bryan Segal, SVP at ComScore, Canada. Sponsors for the Gaming Industry Summit include: Canaccord Genuity, PI Financial, Minden Gross and CIBC.

Also on Friday, Enthusiast Gaming is hosting an invitation-only marketing event “From Mom’s Basement to the Boardroom” to provide valuable insight on how to market/advertise to the highly lucrative gamer demographic.

EGLX is taking place on Friday, October 18 from 3:00pm-9:00pm, Saturday, October 19 from 10:00am-8:00pm, and Sunday, October 20 from 10:00am-6:00pm. To purchase tickets and for additional event information, please visit EGLX.com.

About Enthusiast Gaming

Enthusiast Gaming (TSX.V: EGLX)(FSE: 2AV) is building the largest network of gaming and esports communities in the world. Already the largest gaming network in the U.S, the Company’s business is comprised of three main pillars: Media, Events, Esports. Enthusiast Gaming’s digital media platform includes +100 gaming related websites and 900 YouTube channels which collectively reach 150 million visitors monthly with over 1 billion page views. Enthusiast’s esports division, Luminosity Gaming, a leading global esports franchise consists of 7 professional esports teams under ownership and management, including the #1 ranked Overwatch team, the Vancouver Titans and over 50 gaming influencers with a total audience of 60 million followers. Collectively, the integrated ecosystem reaches over 200 million gaming enthusiasts on a monthly basis. Enthusiast Gaming’s event business, owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.com) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com. For more information on Luminosity Gaming, please visit luminosity.gg

CONTACT INFORMATION:

Investor Relations: 

Julia Becker
Head of Investor Relations & Marketing
[email protected]
(604) 785.0850 

For EGLX Event Media Passes, please contact: [email protected]

Forward-Looking Information

Certain statements in this release are forward-looking statements.  Forward looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of Enthusiast Gaming.  The risks include risks that are customary to transactions of this nature and customary to companies which have their stock traded on the TSXV. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Enthusiast Gaming will obtain from them. 

This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

#Esports: Transforming Media and Entertainment SPONSOR: Enthusiast Gaming $EGLX.ca $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 6:08 PM on Thursday, October 10th, 2019

SPONSOR: Enthusiast Gaming Holdings Inc. (TSX-V: EGLX) Uniting gaming communities with 85 owned and affiliated websites, currently reaching over 150 million monthly visitors. The company exceeded 2018 target with $11.0 million in revenue. Learn More

Esports: Transforming Media and Entertainment

  • Competitive gaming esports phenomenon is poised to eclipse the billion-dollar threshold as it represents a game-changing new media and entertainment category.
  • Audience engagement and growth have driven esports industry revenues on a steep trajectory tracking towards $1.1B in 2019 from merely $195.0M five years back, representing a cannot-be-ignored CAGR of 41.3%.

by Rob Goff

We are exceptionally bullish on the broadly defined esports ecosystem as an emerging new media and entertainment market set to eclipse the billion-dollar threshold. Technology, demographic, regulatory, and capital tailwinds support compelling value realization across the ecosystem. The shift of legacy advertising and sponsorship dollars to esports’ audience demographics where the IP enabled targeting capabilities and measured advertising ROIs are in the early innings is on track to surpass the billion-dollar mark.

Billion-dollar legacy sports franchises need to play the long game given audiences that are increasingly long-inthe-tooth with average ages of 50+. Esports leagues and franchises represent both a hedge on audiences moving away from traditional sports but also a means to cultivate younger audience.Technology titans have placed billion-dollar bets on platforms and publishing titles. Their competitive dynamics support further capital flows and a selfregulation of league and tournament economics to stimulate user growth ahead of near-term monetization. We refer investors to the hockey stick analogy of going to where the puck is headed – we see sustained momentum in audience growth and consequently esports revenues.

We do not see this as a build it and they will come situation. Rather, the audience is there, set to grow fuelled by aggressive infrastructure investments and regulatory support, and monetization is key. Gambling is viewed as both an audience catalyst and source of revenues. Continued audience growth is expected to push advertising/marketing through the billion-dollar level.

DEEP DIVE INTO THE ESPORTS INDUSTRY

Solid Viewership | Lucrative Brand Partnerships | Underappreciated Esports Betting Summary

The competitive gaming esports phenomenon is poised to eclipse the billion-dollar threshold as it represents a game-changing new media and entertainment category. Audience engagement and growth have driven esports industry revenues on a steep trajectory tracking towards $1.1B (estimates by Newzoo, Exhibit 1) in 2019 from merely $195.0M five years back, representing a cannot-be-ignored CAGR of 41.3%.

Structurally, esports is similar to traditional sports as both have professional and amateur players that compete in leagues and tournaments for prize money, either individually or as part of a team. Much like legacy sports, the growth in pro-level gaming has been an important driver in audience growth and amateur adoption as professional players have broadened awareness, provided playing strategies, and inspired young players to pursue professional careers.

Technological innovation, the use of data analytics and investment in gaming arenas, initially for pro-level gaming, are supporting increased amateur engagement and user growth. In fact, the amateur gaming industry has created its own niche in the last few years with open source tournaments and social play that bring additional industry revenue potential.

Advertising growth along with in-game purchases have the titans of game publishing and online platforms leveraged to accelerate esports adoption ahead of near-term monetization strategies that could potentially moderate growth.

We highlight the continued appreciation in legacy sports franchises where NBA franchise prices have jumped from $5.0M to ~$2.2B over the past 40 years. We now draw on the much-used hockey quote where Wayne Gretzky’s greatness was attributed in large part to his ability to go where the puck was going.

“Skate to where the puck is going, not where it has been.”

We are optimistic that esports franchise valuations, and more broadly the ecosystem, represent a new media and entertainment category where audience trends suggest the analogy to traditional sports franchises applies for investors and industry participants. We find that the reference also applies to owners of legacy sports franchises where we see esports team ownership and audience outreach as a strategic imperative to reach and engage millennials.

We have seen forecasts that have US esports viewer levels exceeding those of all legacy sports leagues with the exception of the NFL by 2021. The NFL’s just-announced partnership with TikTok reflects its strategic imperative to engage younger viewers and broaden its audience.

Both Wimbledon and the NBA have begun working with TikTok to similarly engage younger viewers. It is noteworthy that the NFL similarly moved to expand its audience through live-streaming video on Twitter, it was the first sports league on Snapchat Discover, and launched an Alexa voice app. With legacy sporting franchises sporting billion-dollar valuations, owners are playing the long game where audience rejuvenation and broadening must be a central consideration.

Esports player demographics continue to expand at both ends of the age spectrum…

The average viewer of an NFL game is over 50 years old with a downward trend in personal consumption (average age of MLB/PGA viewers is put at ~57/64+ years). Esports player demographics continue to expand at both ends of the age spectrum, while the industry moves to attract younger amateur and prospective professional players.

Significant investments and strong partners have invested in both college and high school level platforms broadening the development of younger participants and audiences. For example, Cineplex (CGX-TSX, C$25.34, Buy, C$34.00 PT) invested C$15.0M to acquire WorldGaming where it saw the value in its US college network and the potential to leverage its Canadian real estate platform for tournament and league play.

Moving below the college level, PlayVS (Private), a gaming platform targeting high school esports tournaments, received $30.5M from investors including Adidas (ADS-ETR, NR), Samsung (005930-KSE, NR), Sean “Diddy” Combs, and the VC arm of the Los Angeles Dodgers to make esports more accessible for teenagers and to support recruiting new talent. We highlight that Discord (Private), a messaging app with a focus on video gamers and particularly strong with youth, raised $50.0M at an implied valuation of $1.7B in Q218 with an estimated 150M+ users at the time versus its 250M unique users in March 2019 (including 180K+ members on Fortnite’s server).

We see the roll-out of esports gambling as a significant catalyst for greater audience engagement and growth…

It is also worth noting that, the US High School Esports League (HSEL) has advanced from 200 to 1,200+ during 2018 with its current reach at 2,000+ schools representing 50K+ students. The HSEL reflects both the expanding North American market and prospectively a pipeline for further growth.

However, at its core, the solid viewership of wealthy millennials, mostly male (we expect that to normalize in the coming years), provides esports its oxygen. If Newzoo’s numbers are to be trusted, there were around 380.2M esports viewers globally in 2018 and it is set to grow by 15.0% y/y to 453.8M in 2019, ~44.0% of which are esports enthusiasts (individuals that watch more than once a month). This number is expected to reach 557M by 2021, out of which 44-45% would be enthusiasts and the remaining would be occasional viewers. Still, similar growth in both categories suggests a possible natural evolution of occasional viewers to enthusiasts.

We see the roll-out of esports gambling as a significant catalyst for greater audience engagement and growth. Esports gambling, due to its solid viewership, is a sub-segment that should not be overlooked by early stage investors. Globally, the total amount of money/items wagered around major esports titles was at $5.5B in 2016. Eilers & Krejcik predicts this number to reach $13.0B by 2020, at their base level assumptions suggesting royalties of $700-800M.

Broad-based brand interest: Both endemic (within the ecosystem, such as hardware manufacturers) and non-endemic brands are rushing to partner with the elite leagues/tournament organizers, players, influencers, and team organizations to reach millennials..

Broad-based brand interest: Both endemic (within the ecosystem, such as hardware manufacturers) and non-endemic brands are rushing to partner with the elite leagues/tournament organizers, players, influencers, and team organizations to reach millennials in a meaningful way, as traditional digital advertising formats are losing their sheen and advertisers are continuously looking for innovative ways to interact with their customers.

If we put advertising and brand sponsorships into a single basket of money flowing into esports from marketers, they currently account for ~60% or $645.9M of the total estimated $1.1B esports industry in 2019 (Exhibit 1). North American revenues are forecast at roughly 37% or $407.0M for 2019 with China put at 19%.

Endemic brands to esports such as Intel (INTC-Nasdaq, NR), MSI (Private), and Logitech (LOGI-Nasdaq, NR) are promoted when players either use or recommend their products based on their own experience. Yet, with their growing maturity, non-endemic brands now account for the majority of the total sponsorship and advertising esports spend.

In a recent partnership, the Overwatch League (OWL) signed a multi-year deal with Kellogg (K-NYSE, NR) to promote Pringles and Cheez-it, which is one example.

Drawing on the traditional sports model, brands are looking for spots where they can interact with consumers either by placing an ad in the competition arenas or placing a branded logo on players clothing or sponsoring the event. Interestingly, individual players and influencers who stream on platforms such as Twitch (owned by Amazon (AMZN-Nasdaq, NR)), YouTube Gaming or Mixer (owned by Microsoft (MSFT-Nasdaq, NR)) also partner with brands, where non-endemic brand logos appear on their clothing or their game screen.

Richard Tyler Blevins, better known as “Ninja”, on Ellen.

For instance, Richard Tyler Blevins, better known as his online alias “Ninja”, has partnered with brands such as Adidas and Red Bull (Private). Ninja also recently signed a lucrative contract with Mixer (speculation includes as much as $100.0M although the debate then moves on to whether it was per year or for the duration of the three-year contract) leaving Twitch, which many argue was a key to his fame.

Nonetheless, Ninja amassed more than 2M subscribers in his first month of joining Mixer. This talks to the strength of these celebrity players/influencers in the esports ecosystem and their ability to influence viewers to migrate from one streaming platform to another. Ninja had 14M followers on Twitch prior to his departure.

Source: https://www.cantechletter.com/2019/10/esports-transforming-media-and-entertainment/

Enthusiast Gaming $EGLX.ca Hires Top Gaming Media Sales Team to Drive Revenue Growth $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 7:47 AM on Thursday, October 10th, 2019
  • Combined experience with gaming brands Electronic Arts, PlayStation and Sony
  • Sales team will build customized, targeted advertising programs for brands looking to target Enthusiast’s monthly reach of 200 million gamers
  • A focus on a direct sales strategy will increase revenue per user and provide good value for advertisers

TORONTO, Oct. 10, 2019 — Enthusiast Gaming Holdings Inc. (TSXV: EGLX)(FSE: 2AV) (“Enthusiast Gaming” or the “Company”) announced today it has hired an executive sales team across North America to help drive direct advertising sales across Enthusiast Gaming’s platform, the largest gaming network in the U.S.

Enthusiast Gaming is excited to welcome the new team, led by Jon Dwyer, SVP, Head of Sales and Special Partnerships; Amanda Rubin, VP Sales, East Coast and Rob Frohling, VP Sales, West Coast. The team brings extensive experience in gaming media sales with brands like Electronic Arts (“EA”), PlayStation and Sony. The new sales team will build out our offices in LA, NY and Toronto, engaging new and existing relationships with brands and agencies.

Menashe Kestenbaum, President of Enthusiast Gaming commented, “We are excited to welcome Jon, Rob and Amanda to our family! We are honored they chose Enthusiast, recognizing the strength in our organization, as the as the largest gaming network in the U.S. with a global monthly audience of over 200 million. Their combined sales experience in gaming media, with leading gaming brands like EA, PlayStation, and Sony Crackle will be key for the growth of our business. Our clients will see immediate value as the team brings deep subject matter expertise, and strong reputations and relationships which will help support our existing clients and bring in new partners across new verticals.”

Enthusiast Gaming’s platform generates over 30 billion ad requests and over 1 billion page views a month. To date, over 95% of Enthusiast Gaming’s revenue generated has been from programmatic advertising; as such implementing a direct sales strategy will enable the Company to drive revenue per user and increase revenue per CPM (cost per thousand impressions).  The direct sales team will allow the Company to monetize across the entire platform of 100 websites, 900 YouTube channels, 7 professional esports teams and over 50 gaming and esports influencers. Direct conversations with brands and agencies will also allow Enthusiast to capitalize on its reach of over 200 million gaming enthusiasts, with custom, direct marketing and promotional campaigns.

Enthusiast Gaming’s business is made up of three key pillars: Media, Esports and Events. As one of the gaming industry’s fastest growing companies with a significant global network of gamers, Enthusiast Gaming enables brands and agencies to reach the sought after millennial target audience, with a customizable, unique program across all three pillars. The Company has partnered with some of the world’s leading brands, including Activision Blizzard, Ubisoft, Foodora, Nintendo, Bell, and Microsoft. Establishing a sales team will be important to continue fostering relationships and driving revenue with brands directly.

Jon Dwyer, SVP, Head of Sales & Special Partnerships

With over 15 years’ experience in sales, business development and marketing, Jon has been CEO and Director of various companies across various industries, including technology, biotech and industrial. Jon was previously Managing Director of Aereus Technologies, where he was responsible for day to day operations and M&A financings. Prior to Aereus, Jon was founder and CEO of Flax Energy. 

Amanda Rubin, VP Sales, East Coast

Amanda Rubin brings over 10 years’ experience in media and advertising to the Enthusiast Gaming team. Initially starting her career in digital as a marketer, planner and buyer of emerging media, Amanda has worked for large brands like Ralph Lauren, Woven Digital and most recently, EA. Before Enthusiast Gaming, Amanda was the Manager, East Coast Sales, at EA. As part of EA’s global brand partnership team, Amanda was the Client Lead on relationships with brands such as Verizon, Coca-Cola, Bose and NBCU. Amanda has worked directly with clients such as Coca-Cola, Bose, GSK, PUMA, New Era, NBCU, Verizon, Tracfone, L’Oreal, Reebok, and New Balance.

Rob Frohling, VP Sales, West Coast

Prior to joining Enthusiast Gaming, Rob served 4 years as Senior Account Executive of Digital Advertising Sales for Sony Pictures Television and PlayStation. He helped build their OTT / video ad sales while also heading up their branded content and sponsorship business for Emmy nominated original shows like Comedians in Cars Getting Coffee and SuperMansion. Rob also helped create custom, native advertising business on Sony PlayStation and PlayStation VR with overall revenue responsibility and OTT advertising leadership for Sony Crackle, PlayStation, PlayStation Vue, Pluto TV and Funimation streaming TV services. Before Sony, Rob spent 2 years as Account Executive of National Ad Sales for Outfront Media, the largest Out Of Home organization in North America. Rob is recognized as an agent of change in Connected TV/Over the Top (OTT) Video, Mobile and Console Gaming Advertising with a high energy approach to exceeding revenue targets. 

About Enthusiast Gaming 

Enthusiast Gaming (TSX.V: EGLX)(FSE: 2AV) is building the largest network of gaming and esports communities in the world. Already the largest gaming network in the U.S, the Company’s business is comprised of three main pillars: Media, Events, Esports. Enthusiast Gaming’s digital media platform includes +100 gaming related websites and 900 YouTube channels which collectively reach 150 million visitors monthly with over 1 billion page views. Enthusiast’s esports division, Luminosity Gaming, a leading global esports franchise consists of 7 professional esports teams under ownership and management, including the #1 ranked Overwatch team, the Vancouver Titans, and over 50 gaming influencers with a total audience of 60 million followers. Collectively, the integrated ecosystem reaches over 200 million gaming enthusiasts on a monthly basis. Enthusiast Gaming’s event business, owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.com) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com. For more information on Luminosity Gaming, please visit luminosity.


CONTACT INFORMATION: 

Investor Relations:  

Julia Becker
Head of Investor Relations & Marketing
[email protected]
(604) 785.0850  

Forward-Looking Information 

Certain statements in this release are forward-looking statements.  Forward looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future.  Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of Enthusiast Gaming.  The risks include risks that are customary to transactions of this nature and customary to companies which have their stock traded on the TSXV. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Enthusiast Gaming will obtain from them.  

This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

MEDIA: Enthusiast Gaming $EGLX.ca is building the world’s most formidable gaming enterprise $EPY.ca $FDM.ca $WINR $TCEHF $ATVI $TNA.ca

Posted by AGORACOM-JC at 11:23 AM on Wednesday, October 9th, 2019
  • The gaming ecosystem is approaching a market share comparable to professional sports
  • Enthusiast Gaming has its eyes set on building the largest community of authentic gamers to monetize and leverage their market-leading analytics network
  • EGLX is the most adept enterprise at increasing fan engagement for its influencers and teams through its massive media portfolio

By: Eva Bieniarz

The gaming industry is colossal — there are more than 2.5 billion gamers around the world, and the gaming market is set to grow to US$196 billion by 2022 alone! With a CAGR of nine per cent for the period 2018–2022, this industry has become a legitimate rival to the traditional sports market.

To compare earnings, the global sports market generated US$488.5 billion in 2018, whereas the global gaming industry hauled in US$135 billion. While both segments are projected to see significant growth in the short term, the gap is poised to shrink as gaming solidifies itself at the “heart of the entertainment business,” according to Newzoo.

The gaming industry is also thriving based on its growing and diverse audience base. For instance, 65 per cent of American adults play video games, and the average gamer is only 34 years old.

Transforming the gaming world one acquisition at a time

Within this massive industry, Enthusiast Gaming (TSX.V: EGLX) is building the largest vertically integrated gaming media and esports company in the world.

As a newly listed public company by way of its merger with Luminosity Gaming, J55, and Aquilini GameCo, the company is on track to make this global vision a reality. One of the new conglomerate’s goals will be to build out a central gamer data source from its three divisions (media, events, influencers), to facilitate brands and advertisers.

Regarding the company’s merger and acquisition strategy, Menashe Kestenbaum, president and founder of Enthusiast Gaming, explains, “Enthusiast has an aggressive growth strategy through accretive acquisitions, which allows us to scale the business quickly and effectively.

“Our strategy is to acquire the leading digital communities across the entire gaming ecosystem, which keeps our platform diversified and agnostic. It also provides us with significant competitive advantage against anyone trying to enter the space.”

The company’s largest acquisition to date, The Sims Resource, is the leading female gaming website in the world, generating $7 million in revenue and $5.25 million in EBITDA (2018).

“This acquisition provided us with immediate access to the growing female gaming demographic and 2.5 billion page views a year. The Sims Resource also has a unique subscription model, which generates recurring monthly revenue from over 60,000 subscribers. We see this as an opportunity to adopt a similar model across our network of 85 websites to drive future revenue growth,” Kestenbaum notes.

Enthusiast has an aggressive growth strategy through accretive acquisitions, which allows us to scale the business quickly and effectively. Our strategy is to acquire leading digital communities across the gaming ecosystem, which keeps our platform diversified and agnostic.Menashe Kestenbaum, President, Enthusiast Gaming Holdings Inc.

What Enthusiast’s merger means for esports

Enthusiast’s merger will make the company a leading publicly traded esports and gaming organization, with $22 million in pro forma revenue on the closing of the merger backed by $55 million in financing, with a combined global audience reach of approximately 200 million.

So why is this merger so significant, and why did Enthusiast partner with Aquilini GameCo? How, exactly, will this benefit the company in the long run?

Well, since Enthusiast’s successful monetization strategy and wealth of analytical data covers an abundance of demographics in the broader gaming industry, the company’s knowledge can be combined with Luminosity’s influencers and esports properties to create a unique gaming ecosystem.

Enthusiast’s success in monetizing gaming properties will also allow the company to monetize Luminosity’s championship esports franchise through the same data-centric, ad tech approach to engage partnership and advertising opportunities.

The fact that Enthusiast is merging with Aquilini GameCo gives the company a huge boost to diversify and expand its presence across more than merely sports and entertainment, but potentially food and hospitality, living, and more.

Enthusiast is also party to a long-term services support agreement with Vancouver Arena Limited Partnership (VALP), pursuant to which VALP will provide Enthusiast with a broad range of marketing and business support services, including corporate partnership and selling support, retail support, brand association and marketing support (to be provided by Canucks Sports and Entertainment), and more.

Apart from a company perspective, when taking a holistic look at the esports and gaming industry, it’s clear that sentiment towards gaming is growing. The industry even has tech giants Amazon and Google wanting in on the action.

What’s more, esports is also being compared to professional sports — hockey, baseball, you name it — in terms of garnering millions of fans around the world.

For instance, in 2017, the League of Legends tournament garnered more viewers than the MLB World Series, the NBA Finals and the NHL Stanley Cup Finals! This would have been unheard of a few years ago.

Kestenbaum explains, “The size and scalability of our ecosystems are a significant competitive advantage. Enthusiast’s online presence of 150 million visitors, combined with Luminosity’s rich content creation reaching over 60 million followers, will be invaluable for us moving forward.”

Enthusiast’s merger is expected to provide further significant strategic and financial benefits to the company, including but not limited to expected margin improvement, involving a combination of the net funds from the private placement and cash-on-hand that may be used to repay all or part of the Sims Resource Deferred Payment, as well as an enhanced capital market profile through the closing of the transactions.

Growth drivers propelling the company towards success

Enthusiast is also growing its fan base and subsequently its customer base through seven strategies:

  • Growth in revenue per user goal: Target revenue per user of $0.40
  • Build out a direct sales team: Increase of 10–20x / CPM compared to commoditized programmatic advertising rates. Expand to key financial hubs like Toronto, New York, London, Los Angeles, and San Francisco
  • Subscription model growth: Offer unique content and player access to increase subscriptions. Currently, over 60,000 subscribers generating approximately $2.5 million in recurring revenue
  • Mergers and acquisitions: Grow the size of Enthusiast’s fan base, and better engage with them to increase revenue and profitability
  • Expand the EG Live division: Build on the success in Toronto and bring similar events to New York, Chicago and the Pacific Northwest
  • Franchise value appreciation: Increase the value of the franchise through content creators, influencers, professional esports professionals and championship esports teams
  • Non-endemic opportunities: Sell more non-endemic sponsorships and partnerships through direct sales and programmatic advertising

Apart from the company’s strategic growth model, Enthusiast has five key business segments that enhance the company’s overall expansion plans. They include:

Content: Enthusiast offers news, reviews, videos, live streams, blog posts, tips, chats, message boards, and other video-gaming related content.

Advertising: The company operates an advertising network for brands targeting the gamer demographic, generating over 30 billion advertisement requests per month.

Events: Enthusiast organizes Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, which attracted over 55,000 attendees in 2018, including a Rising Star Series.

Data and ad tech: The company has built a proprietary ad tech platform around a tech-enabled gamer data platform.

Leading esports franchise: Luminosity Gaming is one of the most popular esports brands, offering a subscription growth model that leverages content and player access to increase subscriptions.

Add in celebrity endorsement from Canadian recording artist Tory Lanez, and the top esports athletes and influencers including YELO, and the company has all the right ingredients to reach success.

A knowledgeable management team leading the way

Enthusiast’s skyrocketing success and popularity is catalyzed by Menashe Kestenbaum, president of Enthusiast, who began his career in video games when he was 13 years old, writing for IGN, a large gaming media site. Kestenbaum launched his first gaming blog, called “Nintendo Enthusiast,” in 2011, which subsequently became the foundation of Enthusiast Gaming today.

Adrian Montgomery, CEO of Enthusiast, has also been instrumental in Luminosity’s new partnership with Enthusiast. As ex-president of Canucks Sports and Entertainment, Montgomery brings decades of knowledge about sports and what it means to be a dedicated fan.

Steve Maida, president of esports at Enthusiast, built the popular esports franchise from the ground up and was responsible for finding talent like “Ninja,” one of the world’s top Fornite players.

With its merger between Aquilini GameCo and Luminosity completed, Enthusiast Gaming is on the right path towards dominating the gaming industry. Through its clear growth objectives, diverse revenue streams, acquisitions, partnerships and more, the company is building a world-class gaming company that cannot be replicated.

Investors should look forward to more company updates as Enthusiast continues to scale and add to its roster.

Source: https://business.financialpost.com/business-trends/enthusiast-gaming-is-building-the-worlds-most-formidable-gaming-enterprise